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The Academy Presents podcast


Nov 24, 2023

How can self-storage be a profitable investment during economic uncertainty?

 

This episode dives into the world of self-storage syndication with Tom Dunkel, Chief Investment Officer at Belrose Storage Group. Tom shares his experience acquiring and operating self-storage facilities across the country.

 

With a background in corporate finance and nearly 30 years of real estate and investment experience, Tom Dunkel brings extensive knowledge and expertise to Belrose Storage Group.

 

Growing the company from start-up to a world-class organization, Tom has specialized in discounted asset opportunities nationwide since 2006. His financial savvy, open communicative manner and integrity have helped alternative investors achieve their wealth-building goals.

 

Tom is the Chief Investment Officer (CIO) of Belrose Storage Group - a seasoned team of real estate investment professionals that specializes in acquiring underperforming self-storage facilities in the Northeast, South, and Midwest U.S. and turning around their performance to achieve high-teens, tax-advantaged returns to its high-net-worth investor partners in a condensed time frame of 2-3 years.

 

[00:00 - 00:02:00] The Tax Advantages of Rolling Investment Gains

  • Avoiding capital gains taxes through rolling gains into the next investment
  • The challenges of 1031 exchanges
  • How self-storage syndication enables tax-advantaged investing

 

[00:02:00 - 00:05:00] Pushing Rents While Maintaining Occupancy

  • Analyzing market data to find the rental rate sweet spot
  • Leveraging competitive advantages over big REITs
  • Keeping close tabs on key performance metrics

 

[00:05:00 - 00:08:00] Understanding Customer Psychology Around Rate Hikes

  • Small incremental hikes seem palatable to consumers
  • Moving logistics deter customers from leaving
  • Long-term customers become anchored to their storage units

 

[00:08:00 - 00:12:00] Adapting the Business Model for Changing Times

  • Shifting focus toward business customers versus consumers
  • Contractor storage as a resilient source of demand
  • Partnering with multifamily developers to offer storage

 

[00:12:00 - 00:16:00] Solving Contractors' Evolving Storage Needs

  • Contractors outgrowing home garages need alternatives
  • Big companies squeezing small contractors out of flex spaces
  • Self-storage offering right-sized spaces

 

Quotes:

"We're paying the taxes and rolling into the next one. If you do the math, I mean, over a period of time, if you do the math, it actually, you know, works out better than 1031 exchanging." - Tom Dunkel

 

Connect with Tom:

 

ww.belrosestoragegroup.com

 

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Connect with Lorren Capital, LLC. for syndicated multifamily investments, https://lorrencapital.com/.

To learn more about me, visit my LinkedIn profile, and connect with me.