Beyond Stocks
Beyond Stocks
Podcast Description
Did you know that most American companies are privately held and that trillions of dollars in business assets are changing hands in today’s retirement boom? Or that private investments in real estate, commodities, notes, and technology can offer cash flow and growth—without the rollercoaster ride of the stock market?
This podcast is intended for high income earners who want to go BEYOND STOCKS (and bonds) to learn about the world of private offerings and alternative investments. Learn more at www.beyond-stocks.com
Podcast Insights
Content Themes
The podcast focuses on alternative investments, including private offerings, real estate, and business financing. Episode examples feature discussions around tax strategies for alternative investors with CPA Vince Porter, relationship-building in real estate investments with entrepreneur Alexia Tuttle, and funding business ventures as alternative investments with banking expert Evelyn Zermeño. Each episode emphasizes practical insights and strategies for wealth building.
Did you know that most American companies are privately held and that trillions of dollars in business assets are changing hands in today’s retirement boom? Or that private investments in real estate, commodities, notes, and technology can offer cash flow and growth—without the rollercoaster ride of the stock market?
This podcast is intended for high income earners who want to go BEYOND STOCKS (and bonds) to learn about the world of private offerings and alternative investments. Learn more at www.beyond-stocks.com
Summary
In this episode of Beyond Stocks, host Chihiro Kurokawa interviews Garland Benton from Direct Equity Source, who shares insights into the self-storage investment sector. As with many asset classes, in an industry of this size, not all self storage facilities are the same. Garland's firm specializes in Class-A self storage, meaning newly-built facilities with features like climate control and technology amenities. By contrast, Direct Equity Source doesn't do value-add or conversion projects intended to make improvements to existing facilities.
Their business model involves raising capital for new self-storage developments, and selling those assets to nationally recognized brands such as Public Storage or CubeSmart.
As the capital partner for a developer called AAA, Garland's job is to find investors to help fund these projects.
Takeaways
- Self-storage is a strong investment sector due to its resilience during economic downturns.
- Direct Equity Source's model involves significant sponsor investment, aligning interests with investors.
- The company focuses on building Class A facilities to attract institutional buyers.
- Investors receive a 12% annual fixed dividend, providing consistent returns.
- Market saturation is a key risk in the self-storage industry, requiring careful site selection.
- The fund structure allows for diversification across multiple properties.
- Garland emphasizes the importance of understanding past performance when evaluating investment opportunities.
- The company has a strong geographic focus on Texas, with plans for expansion in other states.
- Investors have liquidity options after a 24-month hold period, unlike traditional syndications.
- The self-storage market is expected to benefit from reduced new construction in the coming years.
Chapters
02:45 Understanding the Investment Model
05:18 The Resilience of Self-Storage in Economic Downturns
08:27 Diversification and Fund Structure
11:02 Market Dynamics and Consumer Behavior
14:03 Building Class A Facilities1
6:47 Liquidity and Investor Returns
19:25 Risks and Market Saturation
22:19 Geographic Focus and Growth Areas
25:09 Conclusion and Investor Engagementself-storage, real estate investment, private equity, economic resilience, investment model, diversification, market dynamics, liquidity, investor returns, risk management
Disclaimer
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