Self Storage Ventures | Kevin

Quick reintroduction: I’m Kevin. Firefighter. 36. Wife, 3 kids (5 and under) I bought my first house at 19 during the worst housing crash in modern history. Ended up buying about 50 more over the next 5 years. Quit two corporate jobs before 25. Moved to Australia for a year to figure out what I actually wanted. Turns out it wasn’t to sit behind a desk and work a 9-5 or to manage a bunch of homes. Today I own 12 self-storage facilities across 4 states (acquiring more each year), run a hard money lending business, and coach people getting into storage. Things I believe that most people in real estate won’t say out loud: * High occupancy can be a trap * Most coaching programs are marketing funnels disguised as education * Real estate isn’t passive. Run from whoever tells you it is. * A $500K storage facility in a small town will outperform a $2M multifamily in a “hot market” 9 times out of 10 * Automation is overrated if your processes are broken - you’re just automating chaos faster * You don’t need to quit your W-2 to build real wealth I post real numbers, real mistakes, real lessons learned, and real operations. No fluff. What’s one question you have about self-storage or real estate investing? Drop it below or DM me - I’ll answer every one.

@Dan_CBM @dawsmik I would never count on my interest rate changing, but I follow your logic

@dawsmik @Storage_Venture Truth!

Everyone’s waiting for rates to drop before they buy. Meanwhile: 38 of the 49 largest metros just flipped to buyer’s markets. Sellers outnumber buyers 14 to 10. Highest spread since 2012. In Miami there are 25 sellers chasing 10 buyers. You don’t need a rate cut. You need leverage at the table - and the data says you’ve got more of it right now than you’ve had in over a decade. Stop watching the Fed. Start writing offers.

@Polar_Horizons I would never count on that!

@Storage_Venture The deal is the deal. You can always refinance.

@REDevManager Same as this guy

@Storage_Venture This is why I’ve been writing an offer / week. I don’t know if we are at the bottom, but I know it’s harder now & therefore less competition.

@danielcronauer At least once a week

Does anyone else scroll buy biz sell for fun? My new metric, SDE / Employees I want the highest income and fewest employees!

@shawngorham @skylarromines I can’t scroll more than 5 posts without seeing a Skylar post today lol . The internet is wild

@skylarromines that was fast

Wait... Skylar deleted her account?

@SteveOnSpeed Terrible metric

How much net worth do you need to consider yourself wealthy?

@robbiehendricks @ThinkAppraiser Just paid 7.88 for diesel in California

Went to get gas and groceries and set some ugly records. Highest price I’ve ever paid for gas - $5.89/gallon Highest grocery bill I’ve ever had - $369.28 I just spent $475 to get gas and groceries. Can’t be sustainable for 90% of people.

@SinaiLawFirm 3 hours plus drive time

Question to my male followers Wife sends me this with no other context. How long do you assume this hair appointment takes?

@bairdk Apparently I’m dyslexic. Just texted you

@Storage_Venture Thanks! Don’t see a text from you. Try again!

The sad story of two crappy self-storage deals... sourced on-market via LoopNet, bought near the peak in 2022 and 2023 at 5.8% and 5.6% going-in cap rates, sold this week at 9.2% and 8.5% exit cap rates, but managed to return 22.2% cash on cash, 67.8% IRR, 5.1x MOIC, and $1.8m net proceeds to roll via 1031 exchange into a $6.5m purchase of less-crappy assets in a less-crappy market. Property 1 Purchased: Sep ‘22 Price: $1,000,000 Initial Investment & Capex: $81,597 Cashflow (after debt svc): $188,466 Annualized Cash on Cash: 63.0% Sale Price: $1,750,000 Net Proceeds: $861,047 MOIC: 12.9x IRR: 128.4% Property 2 Purchased : April ‘23 Price: $1,400,000 Initial Investment & Capex: $337,799 Cashflow (after debt svc): $152,613 Annualized Cash on Cash Return: 14.7% Sale Price: $2,000,000 Net Proceeds @ Sale: $940,340 MOIC: 3.2x IRR: 48.7% *Fun Fact: I have only ever seen this property in photos, never in person. Combined Hold Period: 44 months Initial Investment & Capex: $419,396 Cashflow (after debt svc): $341,079 Annualized Cash on Cash Return: 22.2% Principal Paid Down: $174,916 Net Proceeds: $1,801,387 MOIC: 5.11x IRR: 67.8% Okay, not that sad. The actual sad part: I was originally under contract to sell for $4.1m early last year. Buyer's primary business was imports. Tariff Day cratered the deal the day before DD ended. They came back after a few months at a lower price, I begrudgingly agreed, they couldn't close after multiple extensions, left me with $20,000 hard earnest money (not included in my return metrics). I'm not sad. It all worked out perfectly in the end. Why did I sell? You get rich by holding forever, right? 1) I enjoy most the part of adding value. I added my value. Stabilized is boring. 2) I'm making a deliberate effort to consolidate and expand my portfolio closer to my home market. Figured I could find some deals closer to home (and I did). These were an outlier in my portfolio. 3) The sold properties were generating a combined 8% cash return on net equity and 11% if you also consider principal being paid down. I can do better (read on). Now the deal I'm rolling proceeds into: 100k sq ft across 3 locations in my home market, where I am already the largest single owner of storage. Sourced via a multi-year courting process, consummated magically 3 weeks before close of this sale. $6.5m purchase price, $65/sf, in a market with comps for well-run assets that are, um, higher than that. Conservatively, I expect to generate 16-23% cash flow return on the rolled proceeds and 20-30% if principal pay down is considered. Double the returns if I just held. May 27 close, $150,000 earnest money hard (from the start). Let's f_cking go. I'll leave you with something that gives me a lot of pride - what these deals were doing before they were mine, what I told my lenders they would do, and what they actually did. Mic drop.

Running late for the tee-ball game. Get the 2 kids out, tie the shoes they untied, grab the snacks that fell, load up the wagon, walk to the field. Get half way there and my wife and I look at each other. Shoot, we forgot the 3rd kid in the truck. At least we remembered.

@jonbrooks No deductions, no equity. Our house has outpaced your math in appreciation

The math broke. You can rent the same house for $2,500… Or buy it for $4,000/month. Buyers aren’t stupid. They’re waiting.

@jase_lachowiez Sprayed it with the big guns. We spend about 12k/yr on spray but only have it to hit it once a year

@Storage_Venture What did you do?

See ya later weeds!

@flywheelinv The illegal stuff

@Wickie218 Happy to help if I can 👍🏼

@Storage_Venture Gotta ask, and totally understand if you prefer not to but can I dm you a property I am looking at? Curious your thought on a fair price as the occupancy is low so curious someone with experience what value they would put on it

2 years ago we bought this facility at sub 30% occupancy. We were at 92% occupancy within 6 months, stabilized it, and implemented our revenue management strategy over the next 18 months. Sold it last week fully stabilized at 90% occupancy back to the buyer who sold to us.

@Jacob_Naviaux He owns a HVAC company, didn’t have the bandwidth or experience. A true win win

@Storage_Venture What a missed opportunity by the seller. Awesome find.

@Wickie218 Base it off very conservative potential with a bolt in profit margin.

@Storage_Venture How do you determine a fair purchase price if the facility is not making money or NOI is low

@AjOsborne1 What service? And is this for self storage?

Over 70% of customers' calls have been handled & completed by AI so far this week. In two months, that will be 90%. By the end of the year, virtually all customer service inquiries and the vast majority of sales calls will be handled by AI. Hundreds of hours a month for just one of our companies.