How John Built a Self Storage Investment Platform
On the Family Office Podcast, Richard introduces a self-storage operator whose team has attended Family Office Club events and worked with Richard's debt origination division.
Richard C. Wilson talks with John of Pinnacle Storage Properties about the firm's growth and approach to self-storage investing. John describes the experience behind the platform, how it sources properties, and the capital structure he believes could support its next stage.
In this video: Richard C. Wilson (Founder of the Family Office Club), John (From Pinnacle Storage Properties)
What they said
- John on storage relationships. John says he learned operations at Uncle Bob's and property improvement as COO of the Jenkins organization. He credits relationships across storage with helping build the platform. (at 2:22)
- John on marketing. John says the firm uses a CRM to collect contact information and educate people about storage. He says its marketing is backed by real information. (at 3:20)
- John on the middle trader niche. John describes the firm as a middle trader that takes on properties needing operational or physical improvements. In his view, that work creates a lane separate from the larger buyers seeking finished properties. (at 6:42)
- John on storage operations. John says self-storage combines real estate with an operating business. He contrasts its 30-day consumer leases with the leases he associates with triple-net properties. (at 11:00)
- John on capital plans. John sketches a $10 million fund of funds, then says a $10 million or $20 million fund could let the firm buy $50 million worth of storage and add 10 to 15 properties. He says an entrepreneurial family office partner could help it move faster. (at 14:15)
In their words
"you're investing in the team and it's a great team."
"you can tell more meeting in person for three minutes than you can on a phone call for 20 minutes."
Why it matters if you are building or preserving great wealth
John said operations at the Austin property added $4,000 a month before expansion. In his example, the existing buildings could produce more revenue before the team added new space.
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Igor Olenicoff: Learn the business from the ground up. A job at a builders hardware store taught Olenicoff about building materials and techniques. It also built an affinity for real estate.
- Tony Robbins: Think like an owner. His biggest turning point was moving from operator to owner. An operator tries to supervise everything and cannot scale.
- Bobby Castro: Change the strategy to scale. Bobby says that to scale a business, everything has to change. He suggests asking whether the business is scalable, whether it offers a solution and whether it is disruptive.
See the data
Frequently asked questions
Where is Pinnacle based?
John says the firm is in Katy, outside Houston, Texas.
What issue came up with the Austin property?
John said the survey did not match the plat. He made a cash offer, then extended the contract so the seller could fix the issue before the purchase closed.
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.