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Invest Like a Boss

07: Building Hong Kong's Biggest Self Storage Business

Invest Like a Boss

Sam Marks Johnny FD Derek Spartz

Business, Investing

4.8518 Ratings

🗓️ 22 June 2016

⏱️ 56 minutes

🧾️ Download transcript

Summary

Kevin Shee went from jobless to building one of Asia's largest private self storages business's in 15 years. SC Storage now is the largest Self Storage company in Hong Kong and expanding rapidly into new markets. Kevin & Sam discuss the financial wizardry behind the business model, the joint venture they co-own in Hong Kong, and investing in US and Asia storage REITs for great yields and recession proof earnings.

Relevant links for guest:

Kevin on Facebook
Kevin on LinkedIn
Kevin’s business SC Storage

Where are we:

Kevin – Hong Kong
Sam – Singapore
Johnny – Lisbon 

What we are drinking:

Sam –  Hibiki Harmony Master Selection

Recommended (books, subscriptions):

Book: The Richest Man in Babylon

Discussed (relevant links):

MapleTree REITs
Public Storage
Extra Space

Time Stamp – Topic:

10:22 – How Kevin become the Father of Self Storage?
12:45 – Spotting the opportunity in self storage
14:45 – SC Storage market share in Hong Kong
16:10 – Is Self Storage recession proof?
17:10 – Playing the property market in Hong Kong
17:55 – Typical size of an SC Storage location
18:10 – My investment with SC Storage
20:00 – Leveraging debt to maximize return on capital
21:25 – Getting loans from banks
24:20 – Competition leeching on corporate strategy
26:15 – SC Storage in acquisitions
26:55 – SC storage expansion into new markets
28:20 – The growth in storage internationally
28:55 – Breakeven point in operating a storage premise
29:30 – The network effect of more locations
30:15 – Potential exit strategy considerations
31:00 – Micro-markets, the next opportunity
33:15 – Investments in REITs
35:15 – REITs in a recession
37:30 – REIT markets USA vs. SG
41:00 – How to invest in Storage REITs
44:20 – Big Data in storage businesses
46:00 – Sam’s investments in REITs
47:50 – Kevin’s investment strategy
49:10 – Investing with reputable people
51:30 – How Kevin gets deals under market value
53:00 – Find out more details on Kevin and SC Storage

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Copyright 2016. All rights reserved. Read our disclaimer here.

Transcript

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0:00.0

Welcome to the Invest Like a Boss podcast. I'm Sam Marks and I'm Johnny FD. We're self-made entrepreneurs who invest our own money and use modern technology to invest like a boss.

0:09.1

Join us each week for exclusive interviews with our network of modern investors, business owners, and multimillionaires to discover new ways to invest our hard-earned cash.

0:17.2

Hey everyone, this is Johnny and I am back with my co-horse Sam Marks. This is episode seven of the Vest Like a Boss podcast. I'm really excited to share with you this great interview with Sam and his friend, Kevin Shee, who owns the largest self-storage company in Asia. I get super energetic every time I talk to Kevin. He's a good friend of mine and one of the

0:39.0

smartest guys I know. The business he built in Hong Kong is just amazing. Every time I go there,

0:43.6

I learn a little bit more about the business about Kevin. It's always, always increasingly

0:48.6

impressive. On the episode, we talk a lot in detail about how Kevin got started with the business.

0:55.4

And I think as importantly and as interesting, the strategy behind the business and how the financial wizardry is, is what I'd like to call it, that he is able to implement in growing and scaling his business, something that has been worth the lesson just in the

1:12.6

investment I made with him just to learn about these types of things and how he's been able

1:16.4

to leverage debt in making the returns of his business that much bigger.

1:21.3

Yeah.

1:21.4

And what's really cool is the fact that he started a company that is a brick and motor company.

1:27.9

It's kind of traditionally kind of like a boring old industry, but he's using new techniques,

1:32.8

kind of model technology, applying big data to it, and he's able to really just take over

1:37.5

this industry.

1:38.5

And I think it's so cool that not only, you know, are you guys friends and you kind of can

1:44.0

see it from the business building

1:45.6

point of view, but that you are an investor as well. And you have a guaranteed fixed income with no

1:52.2

downside, which is amazing. Yeah, I really liked, well, I wanted to do business with Kevin from

1:57.7

the day I met him. And I absolutely fell in love with self-storage

2:02.0

because it's totally opposite of anything that we're used to. I mean, property is something that I

2:09.1

had done a little bit in the past, but self-storage is just such a beautiful concept, right?

2:13.9

It's recession-proof when the market goes to crap. People want to downsize and put things in storage. And even growing up when I was a five-year-old kid, we always had a self-storage unit around town that we would just put all their junk in. And my parents have had a self-storage unit their entire life. So literally whoever owns that self-storage

...

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