Owning a company is 90% just managing the emotions of people.
Launching a crypto is 90% managing the emotions of your friends who bought it and lost their money.
Being a good parent is 90% managing the emotions of your kids and yourself.
Emotional intelligence is 100x as valuable as actual intelligence.

Winners make unemotional decisions and have empathy. They can understand how and why others are acting the way they are.

Understand motivations and you understand actions.
Understanding actions is a prerequisite of having control over your surroundings.

90% of people don't have the EQ do this. They play defense and react to the outside world constantly.

10% of people control their day-to-day, business, life and make things happen.

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More from @sweatystartup

29 Jun
A lot of people reach out to me asking how to buy a storage facility and what size to go after.

Here's a thread to get you started.
If you're an individual investor you want to start out small. $500k range is perfect to get huge value because its too big for most single family investors and too small for big players (my team only looks at $1MM and up now).

That means about 7-15k rentable square feet.
How much cash do you need?

At least 30% of the purchase price. You can raise it from friends / family / investors if you have less. Thats what we did on our first few deals.

I also like to have an extra $50-100k in the bank for surprises.
Read 11 tweets
17 Jun
How to turn $1MM into a lot more:

Buy a $2MM self storage facility. You’ll need $600k cash.

Use $60k of your own cash (10% co-invest) and raise the $540k from limited partners.

You own 10% of the deal but 1/2 the upside (the carry).

Do this 10 times.
With $20MM of self storage purchased it’s time to work your magic.

You didn’t use all of your money - you gave $400k left.

Invest 1/2 that in a few good management hires.

Keep the last $200k in reserve.

Drive revenue and cut costs by managing the facility really well.
On each $2MM property you can raise NOI from about $150k (a 7.5 cap) to $180k (a 9 cap).

The 10 properties now generate $1.8MM in income.

Now it’s time to sell them all.
Read 7 tweets
14 Jun
We've used "seller financing" on two self storage deals in the past year.

And it raised our cash on cash return by 20%+.

And lowered the amount of capital we needed by $500k.

Here's a THREAD about a deal of mine and how this magical debt structure can work.

👇👇
My method is simple. In the late stages of negotiation I submit two offers:

One at a lower price.

And one at the exact price the seller wants but with him holding back 10-20% of the purchase price in the form of a 2nd mortgage (with a second position to your bank loan).
Contrary to popular belief seller financing rarely includes the seller holding back 70-80% and acting as your bank.

Two reasons:

#1 most have some debt on the property.

#2 most want most of their money now.
Read 12 tweets
9 Jun
A thread on how real estate investors, developers and operators can make millions a year and pay almost nothing in TAXES by using depreciation, bonus depreciation, and 1031 exchanges.

A thread on how it works:
Depreciation is the act of slowly, over time, deducting the initial expense of an asset against your taxable income. Generally over a 27.5 (residential) or 39 (commercial) yr time frame. So each year you can write off 2-3.6% of the purchase price against your income.
Thats a big deal. We're buying a new property, a $3MM self storage facility. Thats a $60k a year write off against about $260k in NOI and 200k in cashflow on a $3MM deal.

It makes 30% of our cashflow tax free.

Very powerful but there is much more to it...
Read 21 tweets
8 Jun
Closed on our first self storage property in the great state of Connecticut today!

A nice 26,845 square foot property in a market with strong rents and low supply.

That makes 11 properties and 340,000 square feet so far in 2021!
Also today - clear to close on a $4.2MM acquisition in western PA scheduled for 2 weeks.

Off market. 3 propertied. 90k SF.

$500k in seller financing in second position.

Released deal docs to our current LPs and oversubscribed $920k in 2 hours with backup offers.
The best part - my CFO (hired 2 mo ago) completed the raise from start to finish without my help.

And he didn’t have to take a meeting because of our software Juniper Square.
Read 7 tweets
7 Jun
Friendly reminder:

I do consulting if you’re looking at a self storage deal.

Just got a note today from a guy who has purchased 4 properties and quit his job since our consulting call.

Said he spent 3 hours this morning on a mountain bike.

Love to see it.
Don’t hire me until you have a live deal you want to put an offer in on.

If you’re an individual looking to get started I recommend:

Looking for a facility under 15-20k square feet. Big players don’t even look at them so it’s where the deals are.

Use google maps to measure.
Make sure you have at least 40% of the purchase price in cash (or partners who can help you fund it) - banks will finance 65-70% of your all-in costs.
Read 8 tweets

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