State of Storage with Mark McGuire

Jake and Gino Multifamily Investing Entrepreneurs

Jake & Gino

Buyingapartmentbuildings, Investingsmart, Multifamilyrealestateinvesting, Business, Smartinvesting, Jakeandgino, Apartmentinvesting, Investing, Commercialrealestateinvesting, Makingmoney, Buyingrealestate, Realestateinvestment, Wheelbarrowprofits, Realestateinvesting, Cashflow

5 • 831 Ratings

🗓️ 23 April 2022

⏱️ 33 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Mark’s Background: • Vice President of Investor Relations at Hearthfire Capital • LP on 20 deals • Raised $13,000,000 in capital • Done $28,000,000 in self-storage Mark’s Philosophy: • Recently, capital from office space is diverting to self-storage • 5 Major REITs in Self-storage: - Public Storage - Extra Space - Life Storage - National Storage Affiliates - Cube Smart ✔ The top 5 storages are making a big push to conduct all processes online; no human interaction o The only human requirement is for unit turns once a storage unit is vacated ✔ “You will get an increase in interest when you can minimize friction” ✔ Looks for locations with 50,000 or more square feet o Economies of scale o Only 1 person is required to manage an entire self-storage site regardless of site ✔ Looks for value-add opportunities such as deferred maintenance, no fencing and underutilized empty space on site ✔ Stabilized deal in self-storage is 92% physical occupancy and 92-94% economic occupancy Tips for Investors: ✔ Ask yourself, “What will cause this project to fail?” ✔ Ask this question before investing in any deal Contact Information: http://investingwithmark.com/

Transcript

Click on a timestamp to play from that location

0:00.0	Welcome to the RANCRE show, commercial real estate with no stone left unturned.
0:09.6	Hey everyone, welcome to the RANCRI show. I'm your host, Mike Tarvella. And today, I'm the man to myth, the legend Mark McGuire. He is the VP of Investor Relations at Earthfire Capital.
0:20.5	Went from a LP on 20 deals to doing his own deals with his amazing partner.
0:25.5	In the last 12 months, plus or minus, five to 10 million, he was saying it before the calls,
0:29.9	but he raised over 13 million and has done 28 million in deals in self-storage.
0:35.1	Mark, welcome to the show.
0:36.0	How's it going?
0:36.8	Mike, that is the best intro
0:38.2	anyone's ever given. I think, yeah, people don't ever celebrate their success. So I'm happy to gas them up
0:43.4	and let them know how great they are. Thanks, brother. Appreciate it. I'm looking forward to you today.
0:47.3	Yeah. So, Mark, it was kind of the, with everything going on in the world. You know, nothing. It's, you know, the end of March of 2022.
0:54.9	Interest rates are going up. The world's supposed to be ending. World War III. You're in self-storage.
0:59.3	How has that been going on with interest rates going up? What have you guys been seeing in the markets?
1:04.0	Because I know for us and multifamily, we're focusing on the 10-year treasury, but we're still very bullish on it, especially long-term, but I love to kind
1:11.2	to hear the state of self-storage and what you guys' team are up to. Yeah, you know, it's interesting.
1:16.8	You're right, 10-year treasury for lending. You know, I don't think it matters, whether it's
1:21.0	multi or, you know, self-storage or it's industrial. I mean, that's really what dictates the interest rate on the lending front. With respect to the, you know, supply and demand, I mean, there's a lot of demand for self storage right now.
1:33.4	So there's a ton of capital that's pouring in from other commercial asset classes that had traditionally been better rated in terms of a bank's perspective on their balance sheet.
1:43.1	They viewed, you know, office and
1:45.3	retail complexes to be, you know, top tier, low risk debt. And, you know, that was proven to not
1:53.7	be so true in the last two years. So you have banks that are really reevaluating their portfolios
1:59.9	for risk. And there's a lot of
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Jake & Gino, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Jake & Gino and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.