Purchasing Six Self-Storage Facilities in Two Years with Tony Pernelli
Tony Pernelli – is a self-storage investor from Pennsylvania who got his start investing in multifamily and flips. In this week’s episode, you’ll hear how he self-managed over 100 residential doors while holding down a full-time job and why that experience pushed him into investing in self-storage facilities. In just two years, Tony has built a portfolio of 6 facilities and counting in several locations in the South.
In this episode we talk to Tony about purchasing his first self-storage facility, what was it that attracted him to storage from working a full-time job while managing over 100 residential units. The very simple airport method he uses to decide on markets he wishes to invest in, and finally some of the unexpected frustrations he faces as a self-storage owner.
Key Lessons Learned. When you are dealing with residential real estate, there are two main factors you are dealing with - mechanical systems and people. The benefit of storage is the people's interaction is diminished and the mechanical systems are simplified.
How did they acquire their knowledge or what knowledge did they need to acquire? He’s had to learn how to evaluate self-storage opportunities.
How much money did it take to get started? He put down 25% on a $305,000 self-storage facility, so about $61,000.
How much time does it take now? He spends about four to six hours a week on acquisitions, but only about an hour on management.
Could they do this strategy from anywhere in the world? Yes, he currently invests at a distance.
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