Why I Stopped Buying Storage Facilities 2 Years Ago

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TIMESTAMPS:
0:00 - Introduction to Self Storage Investing Reality Check
1:09 - Nick Huber's Journey: From Moving Company to 63 Storage Facilities
5:47 - The Self Storage Market Crash Nobody's Talking About
9:47 - How We Survived Floating Rate Debt Through Rising Interest Rates
12:37 - The South African Sales Team Secret That Increased Conversions 40%
16:02 - How We Get 110 Five-Star Google Reviews Every Month
19:17 - Why We Bought Industrial Real Estate (And Why It's Hard to Scale)
23:36 - The #1 Rule for Surviving Real Estate Downturns
27:52 - The Two Deals I Walked Away From That Saved My Business
31:22 - How We Use AI to Monitor Every Customer Interaction

THE BRUTAL TRUTH ABOUT SELF STORAGE INVESTING RIGHT NOW 🏚️

If you've been thinking about getting into self storage investing, you need to watch this episode first. Nick Huber, founder of Bolt Storage with 63 self storage facilities under management, reveals why he hasn't bought a single storage facility in nearly two years and what's really happening in the commercial real estate storage market right now.

THE SELF STORAGE RECESSION NOBODY WARNED YOU ABOUT 📉

For the first time in self storage history, every major REIT including Public Storage, Extra Space, and CubeSmart reported declining net operating income for six consecutive quarters. Interest rates skyrocketed from four percent to seven point five percent on commercial loans while overdevelopment in markets like Texas, Florida, and Georgia created massive oversupply. Nick shares how his portfolio weathered this perfect storm and why half his properties are performing below initial projections despite his team's revenue management expertise.

WHAT ACTUALLY WORKS IN TODAY'S STORAGE MARKET 💡

Despite the challenging environment, Nick's team has increased revenue by forty percent across their portfolio through aggressive leasing strategies and operational improvements. Learn how they use South African sales teams to achieve forty-two percent conversion rates on inbound calls, their Google review strategy that generates over one hundred five-star reviews monthly, and why they focus on markets in the Northeast where development is difficult rather than chasing yield in overbuilt Southern markets.

REAL ESTATE DEVELOPMENT VS ACQUISITION STRATEGIES 🏗️

Nick started with ground-up development of a two point nine million dollar self storage facility that's now worth eight to ten million dollars. He breaks down why he wishes he had started with acquisitions instead, the brutal reality of dealing with zoning boards, and why his first development deal changed his entire life trajectory. For anyone considering storage development versus buying existing facilities, this discussion provides invaluable insights into the true costs and timeline of each approach.

CONTROVERSIAL TAKES ON CURRENT MARKET CONDITIONS ⚠️

Should you invest in dying towns with negative population growth? Nick argues that the lack of competition in declining Northeast markets may actually present better opportunities than rapidly growing Southern cities where developers can build new facilities for thirty dollars per square foot. He also shares his bearish perspective on the AI bubble and how rising energy costs from data center construction could fundamentally reshape commercial real estate economics over the next decade.

SURVIVING WHEN YOU CAN'T CLOSE DEALS 🎯

When acquisition opportunities dry up, how do you keep your real estate business alive? Nick discusses his approach to sitting on his hands during slow markets, building relationships with sellers for future opportunities, and why understanding that real estate is fundamentally an operating business separates successful investors from those who wash out during downturns. His advice about never doing deals just to pay bills and having enough runway to weather multi-year slowdowns is essential for anyone building a real estate portfolio.

#selfstorage #realestateinvesting #commercialrealestate #storageunits #realestatebusiness
Want to learn more about our guest? Connect here: boltstorage.com
Want to learn more about the REI Club Podcast, how to invest with Gabe at Kaizen, or join our community of active real estate investors on Skool? Visit the podcast website at https://www.therealestateinvestingclub.com or click here: https://linktr.ee/gabepetersen