Aug 5, 2022
Bill Fairman
00:00:03
Greetings folks. So, you know,we love self storage. We love 'em so much. We ended up buying some.So in this episode, we're gonna talk about lessons learned rightafter this. Thank you for joining us on the real estate andinvestors show hard money for real estate investors. We areCarolina capital management, private lenders for real estateprofessionals. So if you're looking for us to take a look at one ofyour projects, go to Carolina, hard money.com. Click on apply. Now,if you're a passive investor looking for passive returns, click onthe accredited investor tab, and don't forget to like sharesubscribe, hit the bell. And don't forget about Wednesdays withWendy is just a shadow of herself. Apparently our lights are notfocused in properly, but Wendy does, excuse me, 30 minutes perperson on Wednesdays. Anything you wanna talk about real estate.She donates her time to do this. So sign up on this link and wehave one over in the chat, which by the way, we have a chat, it'seither gonna be on the right side of your screen or underneath,depending on the platform that you're viewing us from. So if youwanna leave any comments, nasty or not can put 'emthere,
Jonathan Davis
00:02:02
You know, bill, this is the mostexcited I've seen you in a lot. Yeah.
Bill Fairman
00:02:05
I'm getting ready toleave.
Wendy Sweet
00:02:06
Or I thought maybe it was cuz Iwas back. Yeah,
Bill Fairman
00:02:08
That
Wendy Sweet
00:02:08
Too. We had some great calls onWednesday yesterday too. Wow. Five excellent, excellent calls. Ijust, I'm always amazed at the different topics and just really,really good stuff. Really good
Bill Fairman
00:02:23
Stuff. That would be a good wayto take a couple of questions and then we can yeah. Do 'em here onthe show and answer them. You don't have to say who asked them, butyeah, it might be good topics for,
Wendy Sweet
00:02:35
Well, I'm actually puttingtogether a book from them that we'll talk about just all thedifferent topics, cuz it's just so vast. It's, it's amazing allthe, all the options in real estate. In fact, we talked about thatyesterday. I, I don't remember which one I was talking to, butthat, you know, you get into real estate and you think that it's,you know, fix and flip, right. You know, that's what you think itis. But my goodness, everything gets really broken down into amultitude of different options. And then when you choose thatoption, there's a multitude of different options for that. Right.You know, the layers are, are definitely, it just goes on and ondoesn't it it's depending
Bill Fairman
00:03:14
On market timing, there's allkind of different ways to,
Wendy Sweet
00:03:18
And that's the key. My bro isfiguring out what's going on. My green bro. That's and he is greentoday, but it's, it's, that's the key is really figuring out what'sgoing on around you. And what can you do to go into that toolboxand use? What's gonna work for what's happening in thatmarket.
Bill Fairman
00:03:41
Neat keeps real estate sointeresting is exciting, constantly changing and evolving, but youknow what? It's still the same. It's all that's right about thenumbers. It's just different ways of tackling it based on differentright
Wendy Sweet
00:03:54
Markets, basically the same,that's the
Jonathan Davis
00:03:56
Similar conversation that we, wehad, I think at the last employee luncheon learn or whatever thatwe had talking about, you were saying the market is cyclical andyou know, it's just all these things. And while that's true, thethings that throw it, the occurrences that throw it back into thatcyclical motion are never the same,
Wendy Sweet
00:04:18
Right? Like
Jonathan Davis
00:04:19
So good point. It, it keepshappening, but it's never the same thing that, that
Wendy Sweet
00:04:23
Pushes it over there. Triggerpushes
Jonathan Davis
00:04:24
It back. So that's the excitingpart is we know it's cyclical, but we never know what will causethat cyclical motion.
Wendy Sweet
00:04:30
Yeah. Yeah. Greatpoint.
Bill Fairman
00:04:32
That is true. But the, themajority of the time it's rate related,
Jonathan Davis
00:04:40
But what causes the, we had thesame, but what causes the rate? It's never the samething.
Bill Fairman
00:04:45
That's
Wendy Sweet
00:04:46
Right.
Jonathan Davis
00:04:46
We don't say the fed or the fedresponding.
Bill Fairman
00:04:49
We, we know that the fed doesn'tcons doesn't control
Wendy Sweet
00:04:52
Mortgage rates.
Bill Fairman
00:04:52
Yeah. The fed is always behindit's the market that controls rates.
Wendy Sweet
00:04:56
Yeah.
Bill Fairman
00:04:57
So
Wendy Sweet
00:04:58
Really good stuff. Wedo
Bill Fairman
00:04:59
Have a little bit of breakingnews. Speaking of rates, breaking news, the average 30 year fixedrate mortgage dropped to 4.9, 9% for the week.
Wendy Sweet
00:05:21
Really? I don't know
Bill Fairman
00:05:22
That. Not from 5.3. Oh all theway down to 4 9, 9. Wow.
Jonathan Davis
00:05:27
And it was at five, five. Whatdidn't they? Yeah.
Wendy Sweet
00:05:30
Brian Maddox said that wouldhappen,
Bill Fairman
00:05:32
You know, excuse me. Keep inmind. It's still gonna fluctuate for a while, depending on slowdowns and that type of thing. But a lot of people were pullingmoney back over in stocks and it worked out well. Yeah.
Wendy Sweet
00:05:46
Yeah. That's, that's
Bill Fairman
00:05:47
Good. At least for some of thosefolks that have been kind of sitting on the fence and hoping thatthey wouldn't spend half their life paying their mortgage off. Allright. So let's, let's get this show on the road. Yeah. So a whileback we were fortunate enough to purchase some self storage. Shehasn't told the story. So because it could be fortunate orunfortunate. I'm not sure yet because we, you know, we land in thatspace and we love the space, you know, why don't we own any yeah.You
Wendy Sweet
00:06:23
Know what I mean? Why don't weown
Bill Fairman
00:06:24
Everything? So we're, that wascause we couldn't afford it. We're we're dipping our toes alwayscan and, and Wendy is taking the lead on
Wendy Sweet
00:06:31
This. Yeah. Taking the lead andthe middle and the behind on it. But you know, that's what I said Iwould do. And that's what I'm doing because the team here is soawesome that I don't even really have to do anything in the loan onthe loan side of life anymore, which is sad, but also veryexciting. But it opened me up to be able to do this. And you know,our mom, she might not be online now, but she will watch this. Andshe has seen me all my life. I don't just bite things off to chew.I bite them off bigger than they really need. It's an elephant atevery opportunity for me. And,
Bill Fairman
00:07:10
And we, we call that jumping inwith both
Wendy Sweet
00:07:12
Feet. Yeah. Yeah. And, and Ialways ask myself, why in the world are you doing this? And, but Ialways land on my feet, thanks to God. And you know, the same thinghas happened here. We didn't just buy one storage facility. We hadto buy two. And, and I'm so glad that we did though, becausethey've really been very different in the approach. The reason whywe bought them were for really two different things. You know, one,one was a little bit bigger. One was, you know, that one's locatedcloser to us. One's located farther away. It just, it's amazing howthe two have reacted differently to what we're doing. And I'm kindof doing the same due diligence for both. But one came out to be awhole lot easier to work with, which is the one we didn't thinkwould be than the one that we thought would be the breeze hasturned out to be extremely challenging. Let's
Bill Fairman
00:08:17
Let's, let's talk about two. Oneis more of a conventional way of looking at cell storage all inone
Wendy Sweet
00:08:24
Land. Yeah. That's the one inCrossville, Tennessee.
Bill Fairman
00:08:27
And then the other one inMexico, Missouri.
Wendy Sweet
00:08:29
Yes. Always wanted to go toMexico, but not in Missouri, but is,
Bill Fairman
00:08:33
Is several parcels,
Wendy Sweet
00:08:35
Several parcels. And it's in adowntown neighborhood like it's downtown, but it's split up intofour different parcels that are all within a block or two of eachother. It didn't have a fence around it. They were painted brownand we'd gone in and were camouflaging them. They were camouflaging'em they're, you know, not, no good lighting the weeds growing upeverywhere. And, and so we we've done the rehab side of that almostcomplete for, for the most part, you know, with the new gravel anddrainage and gutters and painting it. And it, it looks like acompletely different place and it's now a hundred percent full. Sonow we're getting in starting to raise the rates and cuz you don'treally wanna be a hundred percent full. You wanna be in the midnineties
Bill Fairman
00:09:33
When this is recorded, we'llleave a link through some before and after
Wendy Sweet
00:09:37
Photo shots. Yeah. I forgot tosend Scott some pictures of that and
Jonathan Davis
00:09:41
You don't wanna be a hundredpercent full because if you are, you're
Wendy Sweet
00:09:43
Not charging enough. That'sexactly right. I'm competitive in the market. Yeah, that's exactlyright. It's, I'm glad that I have my hospitality background beingin the hotel business and of course have a short term rentals aswell because there's things about self storage that are reallysimilar to the hospitality industry. D a little different than yourregular long term rental, but very much like your short term, youcare about occupancy, you know, driving up the rates on a daily,weekly or monthly basis based on what your occupancy is and whatyour competitors are doing. When I was in the hotel business, wehad one particular hotel in Montgomery, Alabama and comfort inquality in there was a Marriott courtyard and a, a Fairfield all ondifferent corners. And each, each, you know, we were the first onescomfort on that corner. And as everybody built a new hotel, youknow, our occupancy was going down.
Wendy Sweet
01:10:42
So we would send the other, weknew nights that that other people were gonna fill up first. So westarted sending their front desk people pizzas and say, Hey, wehave rooms. So I say that because it's important to understand yourcompetition. Yeah. And what they're doing and be on a friendlybasis with them because there are plenty of the newer self storagefacilities out there that are full. They, or they don't have thesizes that people need and you want them to recommend, you know,us. Yep. You know, cuz I don't mind being number two. It's okay.You know, we can still number two yeah. Or walling in it. So, sothat's been, it's been really unique to me in that it's so muchlike the hotel business and, and the automation from it is reallyexciting too, because self storage is exploding. So, so all of thevendors that have to do with self storage, you know, they too areexploding and growing and what they're doing, where, you know, you,you can book a unit on your phone and you're key to get in is onyour phone. You tell
Jonathan Davis
01:11:52
Like you can buy, buy likeautomated drones that when someone like security drones, whensomeone's on the property, they will circle and go to that's.Right. Like it, it gets
Wendy Sweet
01:12:01
Pretty high tech that's right.It does. Now they're running about $32,000 a pop. So we probablywon't be getting any of those anytime soon. Well, but some of thebigger storage, but if you're
Bill Fairman
01:12:10
Hanging out around our facilityfor no reason, you never know, we may have
Wendy Sweet
01:12:14
One, you hear that buzz aboveyou. Yeah. That's what we're looking for. But it's, it's, it's justamazing how automated it is. And you know, and another thing too,in self storage, you definitely wanna do that. Cost segregationstudy and take advantage of the, the, you know, tax opportunitiesthat you're gonna have to be able to do that. So, so it has, youknow, sell storage has so many different real estate types that arerelated to other segments of real estate that you're in. And theykind of all come into this one spot, which is really, to me, it'sreally exciting. I think
Bill Fairman
01:12:53
It's neat. So if you're doingfix and flip and other things and you're having trouble findingcontractors and supplies, is it the same for selfstorage?
Wendy Sweet
01:13:03
It's similar, but not as bad,you know, I'm looking for people who can install fences, I'mlooking for a painter, I'm looking for masonry guy that can repairthat roofers.
Jonathan Davis
01:13:16
The things that are really likebacked up are windows lumber,
Wendy Sweet
01:13:20
Trusses appliance
Jonathan Davis
01:13:22
Appliances. Right.
Wendy Sweet
01:13:23
So I'm not feeling all thatyou
Jonathan Davis
01:13:26
Concrete slab block andmetal
Wendy Sweet
01:13:27
That's right. That's exactlyright. And even like, you know, our Crossville Tennessee propertyhad T one 11 siding. I had
Bill Fairman
01:13:37
No
Wendy Sweet
01:13:37
Idea what that is. Well, it'slike fake panel. It's like the paneling from the seventies, butit's for the outside of a building. So it's, it's on the, the, youknow, where the Eves come to the end. So it's really just on theends of the building and it's all rotten. It needs to be replaced.And my goal or thought pattern was just to replace it with the samething. But you know, my roofer comes in and goes, you know, we canreplace that siding with metal rather than T one 11. Well, heckyeah. I'd love to have it replaced in metal. It's custom cut. Andit's actually a little bit cheaper for us to do it that way andit'll last a lot longer. So, so I'm really, reallyexcited
Bill Fairman
01:14:17
By that. So they using the samematerials they would use for a metal roof.
Wendy Sweet
01:14:19
That's exactly right. And we'regetting roofs put on, on some of the
Bill Fairman
01:14:23
Building. So corrosionresistant.
Wendy Sweet
01:14:24
Exactly. Exactly. So it works.So, but you know, the first thing I did before we bought these is Iimmersed myself in first of all, the North Carolina self storageassociation, a dear friend of mine Wende long invited me toaccompany him to go. And it was, you know, just one of the bestthings I ever did. I'm so grateful that he, he directed me to do dothat. And then I went to a bigger self storage convention in LasVegas. You know, my favorite town, everybody knows I hate LasVegas, but it's called inside self storage. And that was, you know,really, really good with all of the, the classes, the seminars, thevendors, there were, I don't know, 3000, 4,000 people there. It wasreally big, but very, and it was interesting to see too, who, who,who, who the owners are, you know, who is it? 52% of the peoplethat own self storage is mom and pop, you know, real, similar tosingle family, burnt out landlords, you know, and that's who youwanna buy your properties from. So
Bill Fairman
01:15:34
Smaller multifamilytoo.
Wendy Sweet
01:15:36
Exactly. Exactly. And thenyou've got, you know, a few co corporations that have, you know,hundreds of facilities and are just doing really, reallywell.
Bill Fairman
01:15:47
And, and a lot of those are nowdeveloping new versus trying buy old. Cause it's cheaper to developthan it's to purchase.
Wendy Sweet
01:15:54
That's exactly right. And whatwas, and it
Bill Fairman
01:15:57
Functions more like they want itto
Wendy Sweet
01:15:58
Function. That's right. And goahead, Owen,
Jonathan Davis
01:16:01
To build on that, you know,looking for, you know, those old box stores where they, you know, Ithink when we were talking with Fernando angel Luci, you know, theyto self storage exclusively, I think you said it saves almost sixup to 60% of build costs. If you can just get one of those shellsat a decent price and go inside there. So you've seen a lot ofpeople do that.
Wendy Sweet
01:16:24
Well, and that's, what'sanother, you know, we
Bill Fairman
01:16:26
Say, so start looking for coals.Yeah.
Wendy Sweet
01:16:29
Because they're going down. I'mjust kidding. No, no, we love go.
Jonathan Davis
01:16:32
But I mean, like I swear, everyKmart is every old Kmart I think is
Wendy Sweet
01:16:36
Yeah. Self support. That's sotrue. That's, that's very true. And the other thing that, that wetalked about when we first started this conversation, excuse me,was we talked about how like, its, if you go into fix and flip now,you know, it can be, get broken down into so many different typesof things that you're gonna focus on. Well, self storage is thesame way you're gonna have, you know, the self storage that doesn'thave the fence around it. It's located kind of in a neighborhoodit's, you know, low key a C class is what I would call it. Right.Then you've got your self storage that are a little more uppity.They have the fencing and they're really nice. And that kind ofthing. Then you go to your, a class, which is your, you know, five,six story, temperature control, you know,
Bill Fairman
01:17:26
There's like an officebuilding.
Wendy Sweet
01:17:28
Yeah. Yeah. So, so there'svariations of that. One of the things that we're really pushingthough at this inside cell storage, they really were just startingto talk about RV and boat parking. And you know how you can, if youhave solar on the top of your RV cover, you know, if you're gonnabuild a cover for it, you get a 30% tax abatement for that, that ifyou're not putting walls on that building, it's not really animprovement.
Jonathan Davis
01:17:54
So it's not tax it doesn't addvalue to the assessment.
Wendy Sweet
01:17:58
So you don't, don't have to paymore taxes for that. So there's all kinds of little things that youcan look for there. But one of the things that I have reallylearned when I'm looking at new properties is to really search forproperties that have land or, or space a certain amount of space.And you need to understand what you need. Like you're gonna have tohave 30 feet all around that space for turnaround and back in andthat kind of thing. So you wanna make sure that you have space tobe able to add our van boat parking and you don't have to have acover on it. You just, you know, show 'em where they can park and,and you have no overhead for that, but
Bill Fairman
01:18:36
Gravel. Yeah. And that's one ofthe benefits of not having the big bucks, right. That you're doingor the new development, because they're paying a lot more for theland and they want to utilize it with we'll call it dwellings.Right. But if you're buying a, you know, a mom and pop that's out alittle bit, the land was already cheaper. Right. And if they haveland there, then you can either have portable units that you canput in there or you can turn it in the boat and RV and
Wendy Sweet
01:19:03
Yeah. And the cool thing aboutthe portable units is portables are just that they're portable. Soyou can put those units in places where your local zoning won'tallow you to do any kind of a permanent structure. So you'reallowed to add additional space by having those portable units. Butreally when you sit back and look at the cost of the portable unit,why not turn it into just parking
Jonathan Davis
01:19:30
Spot? Yeah. The parking spot. Imean, yeah. It'd be beneficial if you have zoning that has like,you know, you know, offsets that are, you know, extreme, like, youknow, like in some places it could be like 50 foot. Yeah. It'slike, well, you know, 50 feet's a lot. Well, he can get a lot ofportable units and 50
Wendy Sweet
01:19:45
Feet. Yeah. So
Jonathan Davis
01:19:46
That, but you know, that, thatmight be an
Bill Fairman
01:19:48
Opportunity gets back to workwith what you have. Yeah. Based on the market conditions.That's
Jonathan Davis
01:19:55
Exactly right. I saw where somesomeone said we've seen a lot of seller financing for the smallerself storage facilities on the note side. I mean, yeah. I mean,makes sense. I mean, most of those on the smaller ones are, likeyou said, owned by mom and pop they're already paid for, theyeither built to themselves are paid it off or inherited it orwhatever the case may be. Right. And they're justlooking
Bill Fairman
02:20:15
And they're used to the cashflow.
Jonathan Davis
02:20:16
Why not continue cashflow?
Wendy Sweet
02:20:18
Well, and they're smart enoughto know that if they, if they get all that money, they're gonnahave to pay uncle Sam right off the back, you know, why not takingin increments? And if, you know, push comes to shove and they'renot paying me, I just take the facility back.
Bill Fairman
02:20:33
If you go in and improve it andraise the rents. Yeah. And you're not paying, they they've got aplace that's worth more money.
Wendy Sweet
02:20:39
Yeah. That wouldn't be mad. So,so some of the, the piles of number twos that I stepped in was, butthis one turned out to be a good one was I didn't walk the propertyproperly before we closed do that. How do you
Jonathan Davis
02:20:57
Walk it
Wendy Sweet
02:20:57
Properly? Well, you need to goinside units when you're there. And you should have a map of theunits with you when you're doing that. And look for dead space.Like our prop, the property in Mexico, Missouri had 13 more unitsthan we thought. You know, I always love when that,
Jonathan Davis
02:21:20
That that's a good,yeah,
Wendy Sweet
02:21:21
That's a benefit. They actuallydidn't have doors on 'em that it was just a building that was emptyand it looked like it had doors, but it didn't. So, so that's a,that, that was a plus. But the other thing that it, that it hurt bynot walking that property is, you know, when you're looking at aproperty you're looking for damages and things that you're gonnahave to do to, to replace, but by not going into the units, Iwasn't able to see the terrible job they did by putting a roof anda ceiling and how some of them were leaking. And there was a lot ofmasonry things on just the insides of the doors that I would nothave noticed. I would've noticed had I opened up those doors and,and walked in. So, so
Jonathan Davis
02:22:07
Look at every singleunit,
Wendy Sweet
02:22:09
I, I would do everythingpossible to get, get my eyes on every one of 'em. If Icould,
Bill Fairman
02:22:14
Of course, that's hard to, doyou have locks from the owners on those doors? You can't get in tosee
Wendy Sweet
02:22:18
All yeah, that's true. I mean,it, it takes planning ahead to be able to do that, but plan to bethere two or three times to be able to, to stick your head inthere. And I know
Jonathan Davis
02:22:27
That I talk with Fernando. Imean, they usually, when they go look at a facility they're, it'slike a one or two full
Wendy Sweet
02:22:34
Day. Yeah. They do a good job ofdue diligence, Fernando and Luci, their company does a great job,job title wealth. Yeah. They do a great job of due diligence. I, Ijust love what they're doing. The other thing that I can tell youwas a real challenge and it still is. I don't quite have my armsaround. It is the property in, in Missouri had a software programin place already called web storage, which isn't one that we stayedwith. But the other one Crossville, Tennessee was run by theepitome of good old boy. And they literally kept everything on asheet of paper. Like when somebody pay, they hand write, 'em areceipt, zero, zero software whatsoever. And it has, it has taken along time to get all of that uploaded correctly. And they weren'teven taking debit cards or, or any kind of credit card. They wouldtake cash only. And I think a lot of that had to do with that underthe table thing, but we kinda got that. It's amazingtrack.
Bill Fairman
02:23:44
They have multiple facilities.So if they're doing
Wendy Sweet
02:23:47
Multiple, yeah, yeah. Thatcompany that we, that would be hard, keep that we purchase thatfrom actually has four other facilities in the area. And they'reall being operated the same way. It blows my mind. It's a lot ofwork. Well somebody's making necessarily work.
Bill Fairman
02:24:01
I don't know, know if you don'thave to
Wendy Sweet
02:24:02
Pay taxes on that gas? Well,when, when we closed on that, there were three people that werefive years late or longer three that were, that still had stuff inthere. Now we cleaned out a total of 33 units since we've had it.And just a few months of people that were were late, but you know,five years or longer, one guy owned owed $8,000 over $8,000 and,and had never been there. What was his monthly rate? I think he wassitting at 45, 40 $5,
Bill Fairman
02:24:34
Takes a while to get to 8,000balance of
Wendy Sweet
02:24:37
$45. And the rates had not beenincreased in three years. And I mean, it's, it's, it's definitelywork in progress. In fact, Alex is there now cleaning out threemore units today. So we're working that one. It's it's comingalong. So understanding the software and the books and that kind ofthing. I mean, what, what I got was printed out on a sheet ofpaper, but it was all faults. It was just all fault. So that, thatwas a kind of a, a disappointment. And then the other thing thatI've run into is the local government in Tennessee has not beenvery easy to work with in getting our corporation set up and, youknow, so we can get our banking. You know, we bought it with one ofour companies that has the word trust, cuz we bought it in a trustand they don't like that word trust.
Wendy Sweet
02:25:32
So we've really been goingaround for almost 45 days now, tell 'em we didn't make that word. Iknow it's for real. So try just trying to get them to respond tothat and get it so we can actually deposit the thousands of dollarsin payments that we have sitting on the desk waiting to bedeposited is, is kind of frustrating. So those are kind of the, thegood, bad and ugly items that I've been dealing with at this point.But I'll tell you, I, you know, I'm really excited about selfstorage. I'm looking forward to buying two more here realshortly.
Bill Fairman
02:26:07
Wait, wait minute. Before you dothat, I want to give you an opportunity. Okay. To give the lastword,
Wendy Sweet
02:26:14
Oh,
Bill Fairman
02:26:19
I have to use those graphicswhenever I can go ahead.
Wendy Sweet
02:26:22
Okay. It's super istic. TheySPOC.
Bill Fairman
02:26:28
So if you were gonna wrap it upwith your last phrase yeah. Instead of the word, what would youdo?
Wendy Sweet
02:26:33Don't beafraid.
Don't beafraid.
Bill Fairman
02:26:37
Says the person that jumps inwith both feet. Well,
Wendy Sweet
02:26:40
And I'm still here. I'm stillkicking. I've messed up more than most people have been successful,but you know what? You learn from everything that youdo.
Bill Fairman
02:26:51
It's called earning why youlearned. Yeah.
Wendy Sweet
02:26:54
Right? Yeah. The, the thing is,is, you know, you definitely wanna do your homework, but don't letfear stop you. It's just a few more zeros. And I know everybodygoes, whoa, but it it's it's it's well worth it. It's exciting.It's doable. Anybody can do this. Yeah. Anybody can do this. Youjust need to do your homework and hook up with the rightpeople.
Bill Fairman
02:27:17
And it is very recessionresistant.
Wendy Sweet
02:27:19
Yes. Yes.
Bill Fairman
02:27:20
It's low maintenance costs. Onceyou get everything in place and you can automate a whole lot of it,right?
Wendy Sweet
02:27:28
Yeah. Oh, this is funny. So Ilove this question. Where are you buying last? The last two? Idon't know. We're looking and that's the other thing too, is we candoesn't really matter where it is.
Bill Fairman
02:27:38
We would prefer to be inthe
Wendy Sweet
02:27:40
Southeast in the Southeast, cuzthat's where we are, but it doesn't really matter. But this otherquestion from Alva.
Jonathan Davis
02:27:46
Yeah. Elder, I was looking at amom and pop storage unit in the market is close to one of thecorporate storage companies. Should I be afraid?
Wendy Sweet
02:27:52
No, no. They've already done allthe homework. They've
Jonathan Davis
02:27:55
Done the homework, but, and, andagain, that's the, the microcosm of what self storage is. It's nota zip code. It's not a county, it's not a city. It is literally aone to three, three mile radius.
Wendy Sweet
02:28:07
And your customer is not thesame customer that the big corporate storage company has
Bill Fairman
02:28:12
Keeping in mind, same customer,the, the big companies they're raising their rates every sixmonths. And you're gonna get people that are saying, all right, I'mdone with this. I'm moving to someplace. That's gonna be a littlebit cheaper. It may not be as pretty as this one, but we boughtjust more sense.
Jonathan Davis
02:28:30
We bought probably the uglieststorage units. You could
Wendy Sweet
02:28:32
Totally the ugliest. That's notwhat brown on brown, what
Jonathan Davis
02:28:36
They look like. It's what's thepotential for them.
Wendy Sweet
02:28:38
That's right.
Bill Fairman
02:28:39
That's
Wendy Sweet
02:28:40
Great
Bill Fairman
02:28:41
Question. Yeah, no, that, thatis, that is a great question. All right, listen, we need to wrapthis thing up because we've been
Jonathan Davis
02:28:50
Great advice
Bill Fairman
02:28:53
Going on and on about this, butwe have a lot more, we're gonna do some updates on this as we goforward and let you know what Wendy has stepped in. Because again,she's doing all this for us. So
Jonathan Davis
02:29:04
What's the purpose of the lastword. If you have it, no matter who gets to,
Bill Fairman
02:29:11
Okay. Jonathan is now being cutoff, cuz I'm going to this camera. Now
Wendy Sweet
02:29:16
Let me get out of theshot.
Bill Fairman
02:29:17
Thank you so much for joining uson the real estate investor show. By the way we are speaking inthe, at the quest, excuse me, expo in September. We have a link inthe chat over there for a 30% discount firm in 30. So check thatout once again. Thanks again for joining us on the real estateinvestor show hard money for real estate investors. We are Carolinacapital management. We are private lenders in the Southeast realestate professionals. If you'd like to like us to take a look atone of your projects, then click on, oh, first you have to go toCarolina, capital Carolina, hard money.com. Yes. What they said andclick on the apply. Now, if you are a, what is it? An accreditedinvestor looking for passive returns, click on the accreditedinvestor to have, I am sliding out quickly. He's already on theplane. Thank you. Don't forget the like share subscribe, hit thebell. And don't forget about Wednesdays with Wendy. Have a greatweek and we'll talk to you later. Bye y'all.
