253. Self Storage Industry’s Low Operating Expense Pushes Capital Into Space With Mark McGuire

Play This Episode

0 Votes

Mark MacGuire is the Chief Investment Officer at Hearthfire Capital As the CIO Mark is responsible for the equity arm of Hearthfire Capital Having personally participated as a limited partner in 20 different investments Mark understands the most important aspect of an investment other than investment performance is investor communication Mark draws on his personal LP experience to tailor an investor-centric experience for Hearthfire investors He transitioned into real estate sales in 2012 At that time the market was in a downturn and he found success with residential real estate sales In 2018 he made the decision to venture into self-storage and is very excited about the opportunities that are currently available Listen in if you re interested in getting involved in the real estate market or if you re looking for ways to protect yourself from potential risk as Mark gives his insights that are definitely worth considering 00 01 – 03 13 Opening Segment Suja introduces Mark Mark discussed how he started his career in real estate sales working his way up from maintenance to residential He points out that the market conditions at the time were unfavorable for real estate He decided to switch gears and pursue self-storage as an investment He has been successful in self-storage and credits his experience and education in landscaping and construction with helping him succeed in this industry 03 14 – 14 14 Building a Real Estate Team Is Difficult Mark discusses how real estate sales can be difficult to grow a team for and how he eventually transitioned to syndications He became comfortable with syndications after being introduced to it by his mentor He found success with a winery in New Jersey that hosted weddings during COVID 14 15 – 18 36 Taking Advantage of the Market Conditions During Times of Crisis Mark shares his story of how they became interested in commercial real estate and syndications How he eventually ventured into the space by buying and selling single-family homes He shares that the market conditions were favorable for them when they bought their first properties They moved rates to take advantages of the opportunity 18 37 – 32 28 Self Storage Industry s Low Operating Expense Pushes Capital Into Space Mark explains how self-storage is a forgiving business with a low operating expense ratio which is attracting more capital to the space He says that multifamily returns are super compressed which is contributing to the growth of self-storage Self-storage is a great option for partners because it has low barriers to entry and a low operating ratio He discusses how the self-industry and how it has changed over time Millennials are the least price sensitive and care the most about convenience and appearance Boomers are price sensitive and will move to a cheaper storage facility if their rates are raised 32 29 – 39 10 Closing Segment Mark believes that Find your one thing and just go an inch wide in a mile deep Learn everything you could learn until the marginal benefit does not outweigh the marginal cost Mark recommends you to visit and invest with his company https hfirecapital com Mark shares where you can get in contact with him links below Quote s We always want to try and bring them up to within striking distance of street rate but we don t want to give them a reason to move out because vacancy is the silent killer of rental real estate Mark McGuire You can connect with Mark through his website Linkedin and Instagram WANT TO LEARN MORE Connect with me through LinkedIn Or send me an email at sujata luxe-cap com Visit my website www luxe-cap com or my YouTube channel Thanks for tuning in If you liked my show LEAVE A 5-STAR REVIEW like and subscribe Click here to visit this podcast episode