How to Overcome Challenges in Self-Storage Syndication with Christopher Cashman and Terry Morrison
Dec 1, 2023
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Attorney Kim Lisa Taylor interviews Christopher Cashman and Terry Morrison of Equanimity Capital Partners LLC who share insights on building a profitable self-storage business. They discuss the appeal of self-storage, the importance of a strong team, investor management platforms, integrity in business, raising funds, using prefab units, and embracing challenges in self-storage syndication.
Self-storage success relies on expanding, converting, or developing properties for profitable exits.
Collaboration with property management ensures seamless operations and growth in the self-storage business.
Establishing credibility with investors through professional presentations and clear communication is crucial.
Deep dives
Unique Business Model of Overcoming Real Estate Syndication Challenges
Chris and Terry share their success in the self-storage industry, where they have built a portfolio of over 3,100 units plus 188 RV parking stalls in just two and a half years using over $10 million in private capital. Their unique approach focuses on expanding, converting, or developing properties to reach at least 60,000 square feet for a profitable exit strategy, catering to REITs or private equity buyers.
Professional Management and Strategic Partnerships for Operational Efficiency
The duo entrusts property management to Copper Storage Management, leveraging their expertise in running operations and marketing strategies. Copper handles the day-to-day management, including digital marketing, onsite maintenance, and auction processes. The collaboration ensures seamless operations and growth, with regular meetings to align on strategies and improvements.
Future Plans and Challenges in Scaling the Syndication Business Model
Despite economic challenges impacting their expansion plans, Chris and Terry aim to focus on fewer but larger assets for sustained cash flow. Balancing investor demands, strategic alliances, and the slow-turning nature of the business, they seek to shift towards more significant deals. Challenges include navigating investor expectations, selling existing assets, and maintaining operational efficiency amidst market fluctuations.
Strategies for Finding Deals and Attracting Investors
Real estate investors shared their experience of transitioning from chasing deals to having deals come their way, leveraging relationships with various industry professionals for deal leads. They emphasized the importance of wading through deals to find the right ones, highlighting the need for consistent follow-up and relationship building with brokers and potential partners to secure promising opportunities.
Building Credibility with Investors and Business Expansion
The podcast speakers discussed the significance of establishing credibility with investors through professional investor presentation decks and clear communication. They emphasized the need to continuously engage and inform investors, highlighting the role of effective communication and transparency in building trust. Additionally, they touched upon the strategic use of prefabricated units for property expansions, noting the importance of compliance with regulations and lender preferences when adopting such strategies.
Our host, Attorney Kim Lisa Taylor, interviews Christopher Cashman and Terry Morrison of Equanimity Capital Partners LLC, who have built a portfolio of more than 3,100 storage units, plus 188 RV parking stalls, in five states (GA, NC, SC, AR, UT) using more than $10M in private capital in just 2.5 years! Kim gets these two pros to share their insider's view on what it takes to build a profitable self-storage business.
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