Self Storage Q17 Management Aspect

So a question that I get from my passive investors is, what is the active management of self storage like? And the question really depends on what stage of the facility you're in as well as the type of facility or the size of the facility. My name is Fernando Angelucci. I'm "The Storage Stud".

When it comes to management, let's first look at a smaller facility. These smaller facilities, usually the management is not very intensive. You usually get away managing yourself or even hiring a part time or maybe a full time person to take care of the facility for you. And then all you really need to do is manage that manager. Another thing you can do to make the management component a lot easier is to actually automate the facility. So what you can do is add key pad access and exits. You can add rental kiosks that allow potential customers to rent and even look at potential units that they would like to rent.

Now, when you're buying a facility, depending on how much value add is needed. In the beginning, you may have a little bit more intense management. So say you buy a facility that is 30% or 40% or 50% occupied, and you need to bring it up to 85% or 90% occupancy. During that value add time period, you're going to be spending a lot of time working on advertising campaigns, marketing campaigns, incentivizing local businesses to come and store files or materials at your facilities. Doing an every door campaign through a United States postal service. Sending flyers out and, you know, making sure that you're doing the improvements that would help attract these types of customers. Once you get to the 80% or 90% occupancy range, then the active management is actually much easier and drops down quite a bit.

Now let's look at the larger facilities. Say some of these larger facilities, say if you're building a facility for a REIT, usually the best thing to do is actually outsource that management. And you can hire third party companies to manage your facility for you and actually bring it up through the value add process to full stabilization. These management companies are usually the exact companies that are looking to buy these facilities. Once they're at 85% or 90% occupancy, and most of them are REITs themselves.

My name is Fernando Angelucci. I'm "The Storage Stud". If you'd like to learn more about investing in self storage, feel free to drop me a line. You can go to www.TheStorageStud.com. Talk to you soon.

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Fernando O. Angelucci is Founder and President of Titan Wealth Group. He also leads the firm’s finance and acquisitions departments. Fernando Angelucci and Steven Wear founded Titan Wealth Group in 2015, and under his leadership, the firm’s revenue has grown over 100% year over year. Today,
Find out more at
https://www.TheStorageStud.com


http://titanwealthgroup.com/


Titan Wealth Group operates nationwide sourcing off market investment properties for Titan Wealth Group’s acquisition as well as servicing a network of thousands of active real estate investors world wide. Prior to founding Titan Wealth Group, Fernando worked for Dow Chemical, a Fortune 50 company, rolling out a flagship product estimated to gross $1B in global revenues.
With an engineering background, Fernando is able to approach real estate investing with a keen analytical mindset that allows Titan Wealth Group to identify opportunities and project accurate pictures of future performance.
Fernando graduated from the University of Illinois at Urbana-Champaign with a B.A. degree in Technical Systems Management.
Titan Wealth Group was founded in 2015 with the vision of gathering individual investors that have the means to invest but lack either the time to find high-yield investment opportunities or the access to these off-market deals. All too often, founders Fernando Angelucci & Steven Wear came across investors who had deployed their capital only to regret the lack of consistency or degree of returns their investments were producing. In response, Titan Wealth Group provides access to highly-vetted real estate secured investments and off-market acquisition opportunities primarily in the Greater Chicago MSA. Today, Titan Wealth Group not only assists individual investors but has grown to support the acquisition goals and capital deployment of investment groups, private equity firms, and real estate investment trusts (REITs).
As a facilitator of wealth growth, Titan Wealth Group believes that success is not limited to the sum of our efforts and is infinite with what can be accomplished through partnership.
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