Self-storage has always been one of the most dependable asset classes in real estate investment, and on today's show we are lucky enough to sit down with Tom Dunkel from Belrose Storage Group to hear all about the business he and his team have built in the space! Our guest does a great job of sharing the process that Belrose goes through when evaluating deals, the best facilities for their needs, and why their hold period is so much shorter than the norm. We also get to cover some of Tom's thoughts about credit lending, looking for off-market deals, and which capital expenditure areas are the best to prioritize to boost revenue. Tom underlines the value of having a strong and energetic team, and how much he has relied on those around him for the success he has experienced! Near the end of our chat, Tom gets very honest about the unusual challenges he faced in his entrepreneurial journey, and the limitations of his upbringing that threatened to hold him back from reaching the heights that he now has. So to catch it all in this fascinating exploration of an asset class that might just work for you and your investment goals, listen in!
Key Points From This Episode:
- A look at the criteria that Belrose uses to evaluate potential acquisitions.
- Thoughts on the strengths of self-storage; resiliency and the main drivers for its usage.
- The types of facilities that Belrose focuses on, and what has informed these preferences.
- Unpacking Belrose's hold period and their approach to pushing rates early on in response to the demand curve.
- Tom's thoughts on debt and the types of credit lenders they liaise with.
- The primary considerations for Tom with a new site: relative rents, the status of the market, diversification in the economy, and more!
- How direct links to self-storage owners enable Belrose to find great off-market deals.
- Hybrid strategies for different sized facilities.
- The best CapEx factors to focus on to boost occupancy and rental prices.
- Innovations in the self-storage space that Tom finds exciting.
- How Tom and Belrose's underwriting process has evolved recently in reaction to increased inflation.
- Capital raising in today's climate; Tom talks about how this plays out in the self-storage space.
- Lessons and learnings from Tom's journey, and the obstacles he encountered on the way to being a successful entrepreneur.
- Advice for overcoming the early challenges when entering the real estate business.
- How to get hold of Tom and Belrose Storage Group online!
Links Mentioned in Today’s Episode:
Tom Dunkel on LinkedIn
Belrose Storage Group
CubeSmart
Vertical Street Ventures
Passive Income Through Multifamily Real Estate Facebook Group
Peter Pomeroy on LinkedIn
Peter Pomeroy Email