Self Storage Q27 Risks In Investing In Funds

Hi! My name is Fernando Angelucci. And I'm "The Storage Stud". A question that I just got was, what are some of the risks of investing in funds?

The very first thing that I always tell people is, do not invest money that you can not lose. If you're relying on this money to pay for your living expenses or for your kid's college education, this is not money that you should be investing because all investments come with risk. And that risk may be losing all of your investment. Now, while the syndicators that you work with are always going to do everything in their power to mitigate against some of these downside risks. There can be black Swan events. So examples of black Swan events that can cause syndications to lose all our value are, you know, just in the past. You could look at the Dot-com bubble, 9/11, 2007, 2009. Great recession.

And now most recently COVID. Now COVID has been effecting different real estate industries disproportionately. So, you know, hotels went from averaging 90% to 95% occupancy down to 9% occupancy. So if you were in a hotel syndication, there's a very good chance that you're not going to get your money back. Multifamily has also been experiencing a little bit of depression as well, because now people are starting to look at living in tight quarters with other people they don't know. Is somewhat risky. And they're opting for either going to, you know, single family homes or mobile homes, things like that. So that's one of the risks that you should always be aware of.

Now, when you're looking at internal risk, you need to do your due diligence, not only on the project that's being presented at hand, but also the syndicator themselves. You know, you always want to make sure you're running a background, check on the promoter. You want to make sure that their track record is solid. That you can find proof of this track record. You know, talking to references is always something I recommend. You know, work with people that you know, like and trust, and it takes time to build up that trust. But usually by, you know, talking to referrals or talking to people they've done business with in the past, you can start to firm up that picture of the trust. And is this someone that I'm willing to invest capital with?

Other than that, I, you know, we always have market specific risk, with any real estate investment. You're always going to have individual sub-markets that can go up and down in their individual cycles. So for example, I live in Chicago and right now Chicago is at the height of its current market. Prices are very high. Things are selling very quickly. There's not a lot of inventory, but if we were to go back to say 2010, 2011, Chicago was still at the bottom from the '07 to '09 crashes. So that's another risk factor to take into account.

If you'd like to learn more about self storage investments or just investments in general, feel free to drop me a line at www.TheStorageStud.com. My name is Fernando Angelucci. And thanks for tuning in.

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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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