In today’s episode of The Untold Stories of Real Estate Investing, host Wayne Courreges III speaks with Tom Dunkle about the secrets of self-storage investing. After building a business in the distressed mortgage market, Tom and his partner sought an opportunity with increased stability and growth. Investing in distressed self-storage facilities has provided an amazing opportunity.
Tom Dunkel is the Chief Investment Officer of Belrose Storage Group LLC and brings over 27 years of real estate, finance and investment experience to the table. Working alongside his world-class team of professionals, Tom makes it his mission to find great investment opportunities for his clients while helping them meet their wealth-building goals.
Tom manages the firm’s financial underwriting, playing a critical role in creating win-win deal structures that ensure achievable investor returns. In addition, he works closely with private investors to communicate about new acquisitions and investing opportunities, as well as report on the progress of current investments.
Topics on Today’s Episode:
- Introduction to Tom Dunkel and his background in real estate investment.
- The focus of Bellrose Storage Group is on acquiring underperforming self-storage facilities.
- Overview of the self-storage industry and its stability over the years.
- Discussing remote management and contracted call centers for self-storage facilities.
- Factors that contribute to the demand for self-storage, including both good and bad times. Home sales can drive traffic for retail self-storage, so during this time of low residential turnover, Tom is shifting focus to more stable commercial clients.
- Utilizing social media advertising, such as Facebook geo ads, to target specific demographics.
- Value-add opportunities in self-storage investing, including renovations, security upgrades, and management efficiency.
- Interest rates and exit cap rates in self-storage deals.
- The potential increase in properties coming on the market, due to capital stack distress.
- Targeting specific markets and customers in the self-storage business. Shifting focus to commercial customers offers a variety of benefits. People using storage units for their business are more likely to pay on time and be long term clients.
- The process of dealing with non-payment of rent and virtual auctions in self-storage facilities. Delinquencies are much lower cost and easier to turnover than multifamily evictions.
- Building relationships with neighbors and communities for goodwill and to understand the market and their needs.
- Risks and challenges in the self-storage asset class, including market shifts and control over variables.
- The importance of grit and overcoming challenges in real estate investing.
- Tom’s proudest moment: Building a successful, self-sustaining team. Tom’s goal is closing a deal without direct involvement, showcasing team growth.