They say experience is the best teacher, but in real estate, it's actually scar tissue.

Every missed rent target, every deal that goes sideways, it all leaves marks that make you sharper.

Today's guest has built his entire career in turning those scars into strategy.

Hey guys, Kevin Bob here, host of the Real Estate Investing for Cash Low Podcast, and on this show,

we go beyond cap rates and construction costs to uncover the habits,

decisions, and sometimes mistakes that create lasting wealth. The theme today is all around pivots.

How losing big money in a bar venture taught Joe to look past the surface of every deal and see what's

actually in the kitchen. How he turned thousands of distressed second mortgages into a profitable

investment engine and why he believes the next wave of self-storage, the pro storage and small-bay flex model will outlast the boom and bus cycles that we've seen. So let's go ahead and get on to the show with Joe.

Today I'm joined by Joe Downs, co-founder of the Bellrose Group. Now, guys, Joe's got a, he's got a great story. Startlau's a financial advisor. You know, then after the 2008 crash, he jumped into distressed debt and second mortgage investments. You know, when that space tightened up, he pivoted into self-storage, where he spotted a huge opportunity in a market that was mostly run. And I think there's still a big contingent of it that is run by mama-pop owners And we'll dive into that here today. Now fast forward through the Bellrose group, Joe's investing across self storage, industrial, outdoor storage, and small bay flex industrial. Joe, welcome to the show, my friend. It's a pleasure to have you here. Kevin, I've been waiting a long time to get on this show. This is such a great show. So thanks for having me. No, I appreciate it, man. And as we were talking about before we started recording here,

we got a little bit in common.

You know, you kind of know the area where I grew up, because I believe your wife went to a competing high school right down the road with me. So small world that we live in, right? Yeah, that's right. and you're based in Philadelphia, if I understood correctly.

And I grew up in Harrisburg, PA, so about two hours away.

And I always share this little... You're based in Philadelphia, if I understood correctly, and I grew up in Harrisburg, PA, so about two hours away.

And I always share this little, little comical insight about those that are from Pennsylvania.

Maybe you've heard this, maybe haven't.

Pennsylvania is the only state that when you're from there, and someone asks, where are you from, you typically, you respond. I'm from PA. It's the only state that does that. No one else references the state that they grew up in or live in as the initials. So anyway, think about that. Have you heard that? You've never heard that, have you? No, I have, but I know why you say that because you're from the Harrisburg area.

When from Philly, we just say Philly. I get that. When you're from Philly, you're from Philly. We know where Philly is. But you're right. I've heard the PA. Yeah. Well, awesome, man. Well, excited to have you here. And so I guess before we dig into the discussion here, I love for you to maybe set the stage a little bit. I gave you that brief introduction. I know there's a little bit more to the story than that. Tell us a little more about your background and how Bellrose got started and what your main focus is today.

I'll try to keep it condensed, but I've realized 52 now and it's somewhere in the last couple years, I realized that I am an entrepreneur and it's because I have survived a

series of kind of restarts and challenges and you know life throws your curveballs

and you just got to figure it out and that's how I ended up in storage too so how

did I get into storage I was in distressed debt I still own a company that buys distressed debt. But how I got into distressed debt was because I had to reinvent again. You have to have an open mind when one door closes, you know, another open. So I started as a financial advisor. And then I realized around 9-11, no stolen valor, it wasn't because I lost, you know, my dad or anything in 9-11.

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