I came, I saw, I conquered
I started running at 5:00am and didn't stop for 31 hours.
100 miles and 15,500 in elevation gain later, the job is done.
So many learnings from it, but I just wanted to say thank you for the love yesterday
I wanted to be an investment banker after college.
My grades werenโt good enough and I blew the interviews I did get.
I accepted a middle office role, supporting traders who liked to fling bottle caps at my head.
I pivoted to working as a credit analyst, underwriting loans for
My mentor at J.P. Morgan ripped me apart for giving him 100% certainty answers when I was only 80% sure.
I worked w/ him for 2 years and this lesson still sticks with me:
If you know something 100%, say it w/ 100% confidence.
If you don't know something 100%, say you don't
Take your kids on 1x1 trips.
I brought my 7 year old on a same-day work trip today to Miami. We went to the site then to the science museum.
I was a different dad and he was a different son. We both loved every second of it.
Iโm documenting this not to boast, but to remind
5 years ago my watch thought I was having a heart attack.
I had been sitting still for 10 minutes, but my heart rate was 120 bpm.
I was about to go on stage and give a presentation to all the CEOs of the REITs and largest developers after just starting Radius+.
No real lesson
My mentor at J.P. Morgan ripped me apart for giving him 100% certainty answers when I was only 80% sure.
I worked w/ him for 2 years and this lesson still sticks with me:
If you know something 100%, say it w/ 100% confidence.
If you don't know something 100%, say you don't
We bought this piece of land in November of 2020 for $1,250,000 and built a self storage facility
When stabilized it will be worth between $26,000,000 - $29,000,000
Here's what went into this deal:
I worked with a Sr. Banker at J.P. Morgan when I graduated from college.
He covered big-headline clients.
I loved him because he had no ego and we became fast friends.
We kept in touch even after I left the firm, just an occasional conversation every 6 months or so.
When I
We bought this piece of land in Nov 2020 for $1,250,000 and built a self storage facility.
When it stabilizes, it'll be worth $26,000,000 - $29,000,000.
Here's what went into this deal:
@sweatystartup
substitute a graph of scrolling Twitter and you can push the same tweet
there are two paths, either remove all the temptations from your kid's path or teach them how to maintain balance with everything that's out there
One of my lax teammates in college was completely drug-free
A few years ago: Self storage data was impossible to find. You had to manually research every facility and call them up to get rates.
So we built Radius+. Letโs you see everything you need to know for every self storage facility in the country
@sweatystartup
@thesamparr
Now add in the math around how you invest the capital that would have otherwise gone in as a down payment
Iโve invested every dollar in my companies and have been renting my whole life
I guess I could have just bought a house instead of starting dxd or radius
I negotiated a $10,000 discount on a new truck last week.
Hereโs the story, tactics, and why you are missing out if you arenโt studying how to properly negotiate.
The truck is a Chevy 2500 HD ZR2; not many of them are available, so I was already starting at a disadvantage.
It
My software businesses will generate over $4 million in 2023.
I have no idea how to write code.
My private equity company is building $400 million in storage.
I'd never built a building before.
You don't need to be an expert.
๐งต
My Tahoeโs engine auto stop feature saves no gas - its only purpose is to wear out my starter 2x as fast.
Is there any way to permanently disable it?
I was lucky enough to get screwed out of a $500,000 consulting fee by a hedge fund.
They hired me to research the self storage industry in 2016.
It turned out ok.
I co-founded a company providing data to the storage industry. We will do $4mm+ this year.
Iโm also building
My mentor at J.P. Morgan ripped me apart for giving him 100% certainty answers when I was only 80% sure.
I worked w/ him for 2 years and this lesson still sticks with me:
If you know something 100%, say it w/ 100% confidence.
If you don't know something 100%, say you don't
I was lucky enough to get screwed out of a $500,000 consulting fee by a hedge fund.
They hired me to research the self storage industry (which I knew nothing about at the time).
It turned out ok.
I started a company proving data to the storage industry. We will do $4mm+ this
I've raised $150 million for my self-storage & storage businesses.
Needless to say, Iโve pitched dozens of potential investors.
I've learned a thing or two about what works & what doesn't...
My software businesses will generate over $4 million in 2023.
I have no idea how to write code.
My private equity company is building $500 million in storage.
I'd never built a building before.
You don't need to be an expert.
The biggest lie out there:
You have to be an
I got into self storage by advising some of the most sophisticated investors in the world to short it.
7 years and 3 businesses later, my life is still consumed by it.
Here's the story of how I fell into being an entrepreneur.
Iโm celebrating my 40th birthday in the ER
Itโs just a stitch on her eye, but 3 months ago I sat in the same ER after she was unloaded from an ambulance after a seizure that left her lifeless for 8 agonizing minutes.
I havenโt had the will to discuss seeing my little girl like
Self-storage is a $43 billion industry w/ 55,000 units in the U.S.
We built the Bloomberg for Self-Storage.
It's called Radius+. It's the go-to data platform for self-storage investors, brokers, and developers.
Ask me anything about the industry ๐
The worst time to look at your phone is during your kid's sports practice.
I was guilty of catching up on my email during my son's practice, but I started putting my phone away completely.
Here's what I've noticed:
He's enjoying practice more and he's working harder.
After
@DanHightowerJr
meh - once you are in the military it doesn't guarantee that this behavior doesn't exist.
I'd caution against the idea that you can bypass this by just hiring a vet.
That being said - I haven't served and am thankful for all that have (including my brother) ๐บ๐ธ๐บ๐ธ๐บ๐ธ
We just started construction on this....self storage facility
It doesn't look like a storage facility, but it is
What's unusual, besides the design, is we are building a daycare as well.
Here's a quick story ๐งต๐
This message is for accounts with 43 followers who are busy grinding but with little to show for it yet.
Thereโs a lot of hype around power users on twitter getting together, exclusive meetups and the value thatโs created from being a part of those clubs.
Itโs true, there is
In 2020 when we started DXD Capital we had one goal: raise $50 million & build 10 projects.
By 2022 we had raised over $100 million and had 25 under development.
Business plans change.
I made $1mm in 10 days in self storage.
How?
- Woke up at 3am
- Drank 1 gallon of Athletic Greens
- 30-minute cold plunge
- 5,000 cold calls before 7am
- LOI signed by 8am
- Construction started on day 2
- Leaseup completed on day 6
- Marketed for sale on day 7
- Offer
So that's how you turn $15mm into an asset worth $26 million + some monthly cash flow
2.5 years of navigating the construction process, eating the carrying costs, and managing rising interest rates
Not for the faint of heart, but there are huge opportunities in development
In the last 8 weeks, my team has seen their inbox light up from inbound biz dev emails from GCs.
Contractors are seeing work dry up everywhere, and they are starting to bid down prices.
A brand-name storage door supplier just came in 25% below our go-to vendor.
2024 is the
This message is for accounts with 43 followers who are busy grinding but with little to show for it yet.
Thereโs a lot of hype around power users on X getting together, exclusive meetups, and the value created by joining those clubs.
Itโs true, there is, and Iโm not hating
Opening day at our flamingo site.
I found this location in June of 2020.
People told me Vegas was a horrible market.
Data told me something different.
In the coming months we will see who was right.
Building our first storage facility in Hawaii.
Specs:
Sq Ft: 104,000 gross
Rates: $340/month
# of Units: 1,079
1 month into construction, 11 months to go.
No area is more supply constrained than a small island.
๐๐Opening Day๐๐
Total cost: just under $14 million
This project has been fraught with delays. Some were our own fault, but we learned from them and improved our process as a result. Most were from this beautiful little thing we like to call, the government.
Commercial real estate is booming.
I've been active on Twitter for 4 months, and the brainpower from this community is massive.
Here are 9 must-follow rising stars (and current kings) in CRE:
We bought this parcel of land in June of this year for $5,500,000 to build a self storage facility that will 1.9x our investment.
Here's what went into the deal:
Graduated Harvard University: 2006
Goldman, Sachs & Co, Investment Banking Program Analyst: 2008 - 2010
The Carlyle Group, Private Equity Associate: 2010 - 2012
Blackstone, Managing Director: 2012 - Current
This was NOT my path
But for years I was convinced it was what
Uncommon success requires an unbalanced life.
Iโm turning 40 and Iโve been unbalanced for the last 20 years.
If youโre young and have wild ambitions, embrace the unbalance, trust your gut, and donโt let family or friends take you off your path.
5 years ago, my watch thought I was having a heart attack.
I had been sitting still for 10 minutes, but my heart rate was 120 bpm.
I was about to go on stage and give a presentation to all the CEOs of the REITs and largest developers after just starting
@radius_plus
.
No
Let's assume the government just starts guaranteeing all bank deposits.
What happens next?
No one cares where they put their money and deposits flow to the riskiest institutions that offer crazy deposit rates and take an absurd risk on how they invest that cash. Is that a more
7 years ago: We looked at every single address in the U.S. to figure out if it was a self storage facility. From there we dug further and now have data around estimated units, size, facility condition, and detailed daily pricing.
Today:
Here are the numbers of how cost segregation saved me ๐ฐ
Built an asset for $11,500,000
Depreciated $2,231,000 in our first year
Without cost seg, the 1st year depreciation would have been ~$383,333
That means I have a tax shield (aka I can make without paying taxes on)
Update on our Miami, FL property:
Land acquired, starting construction this summer.
Net Rentable Sq Ft: 74,388
Total Units: 774
10x10 Rate: $230
86,500 people in the trade area. MHHI is $82,000.
Undersupplied market w/ only 2 facilities in a 3-mile radius.
Multi-family developers: So proud of our beautiful new product! Luxury finishes, stainless steel appliances, and we brought in a local artist for $50k to create a custom piece for the lobby that ties everything together.
Self storage developers:
The Phoenix market currently has 35.7 million square feet of self storage
And there's 6.7 million sq ft in development
Those new facilities will increase the supply in the market by 19% ๐คฏ
Does it make sense to:
-Acquire land for $20 per rentable square ft
-Build storage on that land for $117 per sq ft
-And rent it out for $2 per month per square ft?
That's the math behind building self storage right now
When Iโm gone I hope my kids always remember me as someone who sent it.
Tried the things that sounded crazy to most.
I hope they are inspired by my pursuit.
I hope that whatever they decide to do in life, they push the limits.
100 miles, 14,000 feet of elevation, in under 36
I've done 25 self storage developments so far
Here's a typical timeline for each...
Research & analysis: ~24-36 hours
Initial offer: ~24 hours
LOI โ Purchase Agreement: 2-4 weeks
Due Diligence: 60-90 days
Entitlement: 30 days - 3 years
Closing: 30-60 days
Construction:
@seanmcginnis
sometimes people are just insecure about not knowing the answer - making sure you let them know that not only is it ok to say I don't know, but expected, can lead to better outcomes with their responses
A REIT is pivoting all of its 6.8 million sqft of office, retail, and light industrial assets 100% into self storage.
Oh, and the CEO resigned and they are brand new to storage.
Sounds like everything is 100% under control.
๐ฅ๐ฅ๐ฅ๐ฅ๐ฅ
Update on our Flamingo property:
Net Rentable Sq Ft: 103,000
Total Units: 1,152
10x10 Rate: $160
Took 21 months to build after closing on the land, expect to open July 6th.
In 4-7 years it could be worth $22-$28 million.
Want to be a real estate developer? Here's what you'll have to stomach:
Putting millions of dollars in investor capital and borrowed funds on the line for 2 to 3 years of construction, while dealing with fluctuating interest rates and costs.
All before you see a single penny.
In 2006 when I started on Wall Street, the consensus was the housing market might be dead, forever.
In 2020, everyone said COVID would kill New York.
In 2023, everyone is saying โInterest rates are going to be high forever!โ
Hereโs what Iโve learned from more than 15 years in
Residential rents lag market conditions by 12 months
Commercial rents lag market conditions by 2 to 3 years
But self storage rents adjust every single month
Maybe storage is the best real-time indicator for how the CRE market is doing
Three years ago Iโd never raised $ for real estate
Today, we are building $371 million in self storage
Here are 3 lessons Iโve learned over the last 36 months
๐งต๐
Self storage acquisition process:
Check the average price/sq ft for self storage facilities in your market
Then look through all the independent facilities and find ones with pricing below the average
Could signal a mismanaged facility, and the owner may be open to
I've invested over $1mm to build the data and technology needed to know which parcels are zoned for storage and which are not.
Zoning is the biggest black hole for most developers.
While pricing data is important for determining generally where to build, without equally
This parcel of land cost us $1,270,000 in October 2021.
Weโll use it to build a self storage facility that will 3.23x our investment.
Here's the deal breakdown:
Iโve hired a lot of people over the last 8 years.
Hereโs the common trait I've found with the most successful employees:
A spouse that is all in on the big picture.
Some spouses canโt stomach to give up the country club membership or the three vacations a year.
Some just were
I've always wanted to turn a blank warehouse into a custom office.
The time has come.
My current must-haves I'm designing in:
- massive American flag flying from the ceiling ๐บ๐ธ
- Gym
- Shower
- Kitchen
- Plenty of office space
We have been playing around with converting
Self storage is a commodity.
Customers just want a clean storage space less than 15 minutes from them.
They donโt care about brand.
So how do you get a competitive advantage?
Data. Find the areas with the greatest mismatch between supply & demand.
@sweatystartup
@thesamparr
Seems like the comparison would be $420 mortgage against the $10mm in revenue my companies produce 8 years in
I pay $5k in rent today, probably wouldโve been much lower if I had bought a house 8 years ago instead of starting Radius, but Iโll gladly pay the higher rent
Youโre
U-Hauls self storage platform is probably the biggest value add opportunity in all of real estate
If the family either loses majority control or decides to be taken out, it will be the most aggressive cap rate on in place NOI youโll ever see in storage
I've never written a line of code.
Yet my software companies will generate over $4 million this year.
I'd never built a self storage facility before.
But my private equity company is building $500 million in storage.
You don't need to be an expert.
Self storage is a commodity.
All customers want is a clean storage space less than 15 mins away.
They donโt care about brand. They don't care about amenities.
So how do you win? Data.
Find the areas with the greatest mismatch between supply & demand.
Update on our West Palm Beach, FL property (under construction):
Net Rentable Sq Ft: 77,150
Total Units: 738
10x10 Rate: $200
It's our first facility built using tilt wall construction.
The site sits in an area w/ 90k+ people. In 4-7 years it could be worth $27-$31 million
Want to be a developer?
We spent millions to acquire this land and build a self storage property on it
30 months later, we are just now starting to see some revenue come in
We raised $53 million with a completely unique fee structure
While these fees add up, our payroll is $3.8 million
I'm 3 years into running DXD, and my (small) salary has turned on and (mostly) off many times.
Here's some detail on we generate fees๐