As a continuation of our previous episode, Fernando tells us more about Self-storage. This time, we will be focusing on learning to manage remotely. After earning 150 million in the span of three years, you definitely don’t want to miss the telling of his journey!
In this episode, we cover:
- How residential was taking a lot of his time even though he had a third party management, and he started wondering… who’s passive truly when it comes to investors? His goal was to spend less than an hour a week managing his business.
- Self-storage does not have tenants, actually. They can be considered “clients”. And because of that, it cannot be guarded by tenant law. So he can take a lot of liberties with the units.
- Fernando tells us how self-storage has a high sticky factor: If you raise the rent of a residential unit, most likely, the tenants will move out to look for something better. However, increasing a small percentage of the unit’s rent, they will just comply. The cost of finding a different unit and moving everything will be way higher than the monthly cost of keeping it in the same location. He even said that he gets minimal to no move-outs!
- He reminds us to make sure you have good visibility, an online presence (and a mobile optimized website). And remember to buy for cashflow. Cash is king. That’s a good way to start.
- Working your business remotely: how he does it. How does he know what markets to hit? Well, he makes sure that you’re buying in a market that is under served!
- PRO TIP: Focus on which investments will need no people present, just a phone (and he tells us all about those!).
Fernando Angelucci worked for Dow Chemical, a Fortune 50 business, where he helped launch a flagship product that generated $1 billion in global sales. When he was 23 years old, Fernando began working in real estate, specializing in residential rentals and wholesale. Fernando then went on to develop a Midwest-wide portfolio of multifamily rental properties. Fernando and the crew sold their residential real estate holdings to concentrate on self-storage in order to be ready for the upcoming economic downturn.
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Book in a call: https://calendly.com/strategicsuccess/lets-get-real-estate-20-min-chat