Self Storage Q24 Self Storage Works With REITs

Hi! I'm Fernando Angelucci. "The Storage Stud". A common question I get is how do smaller self storage companies or smaller self storage operators work with REITs or these Real Estate Investment Trusts?

One of the easiest ways to work with the REIT is to take the risk off of their books. The risk off of their plate, because REITs are usually funded through public means. Usually through the stock market. They really are always looking for a solid return each quarter, and they don't want to take any large risk by holding properties that are not cash flow. So one of the strategies that we employ is we'll go out and do the riskier things that the REITs don't want to do, and they'll pay us a premium for doing that. So for example, we have a property right now in the suburbs of Chicago. It's a ground up development. It's a $12 million project, roughly 136,000 square feet.

It's going to take 12 months to build that facility. And then it's going to take an additional 24 to 36 months before it really starts to cash flow. And at least anything worth mentioned. At that point, once you're around month 48 to month 60 is when the REITs start getting interesting. They'll actually come in and start making you offers anywhere in the four and a half to 6% cap rate range. So what that equates on that deal for me is I'm building it for $12 million and I'll most likely sell it to a REIT for around $17 million. And I'll walk away from closing with about 5 million.

If you want to learn more about self storage, feel free to drop me a line at www.TheStorageStud.com. Thanks again.

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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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