In this episode of The Mailbox Money Show, host Bronson Hill and co-host Nate Hambrick sit down with self-storage investor Fernando Angelucci for a masterclass in creative deal structuring, portfolio aggregation, and tax strategy.
They discuss how Fernando built a portfolio of 58 self-storage facilities valued over $240 million by targeting mom-and-pop operators and rolling up smaller properties into institutional-grade packages. Fernando breaks down how to create win-win seller financing structures that pay above market value while controlling total hold costs, using substitution of collateral to create private warehouse lines of credit, and offering sellers LP equity to solve their capital gains tax burdens. The conversation also explores micro-bay industrial real estate for home service providers, the operational advantages of lien-based storage over tenant-renter real estate, and why investing in high-level mastermind education is essential for long-term real estate success.
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Fernando Angelucci is the founder and CEO of Self Storage Syndicated Equities (SSSE), a commercial real estate firm specializing in off-market self-storage acquisitions, portfolio aggregation, and micro-bay industrial properties. After starting his career as a Fortune 50 engineer, Fernando transitioned to real estate and built a portfolio of over 55 facilities valued at more than $240 million across 24 states. Fernando is known for his expertise in creative deal structuring, win-win seller financing, and helping investors build long-term wealth without the headaches of traditional tenant real estate.
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Full Transcript:
Bronson Hill: Welcome to the Mailbox Money Show. I’m your host, Bronson Hill. I’m super excited for this guest today, and we’ve got my amazing co-host here today. We’ve got Nate Hambrick, the author of The 18 Laws of Leverage. Nate, tell me about self-storage. I know you’ve invested a little bit in self-storage in the past, right?
Nate Hambrick: I have. I love self-storage as an asset, but I’ll give you one caveat: I know about this much about self-storage compared to the other asset classes. So I am absolutely pumped for today’s conversation because I am looking to get more into self-storage. It’s just such an undervalued asset for a lot of different regions in the United States. So this is going to be a great chat.
Bronson Hill: We’ll say too, and we’ll talk about this with Fernando, our guest—COVID really changed a couple things. People weren’t moving during COVID, and even with interest rates being super low, it kind of has locked a lot of people into not moving as much. So we think there’s some opportunity now to really take advantage of self-storage. With that said, we have Fernando Angelucci here. The last seven years he’s been doing self-storage, over 55 self-storage units, valued over 240 million dollars. So he’s been doing this for a while.
He specializes in creative deal structuring. And this is something that I think for a lot of us—how do I buy something with little or no money down? Or if I’m just a regular guy and I find a deal, is there a way that I can figure out how to structure that so that I can pull it off without having to raise any money, or maybe raising just a little bit of money? So that’s all very interesting. He talks about off-market partnerships, syndication, all that stuff. Fernando, really excited to have you today. Thanks for being on the show.
Fernando Angelucci: Yeah, thanks for having me, guys.
Bronson Hill: Awesome. We do this a little different. We kind of make this a conversation, so we’ll interrupt each other and just have a good time so that we can add as much value as we can. Obviously, I gave your bio here. Tell us a little bit about how you got started in self-storage.
Fernando Angelucci: Yeah, it’s somewhat long-winded. I read Rich Dad Poor Dad when I was 16 years old and realized that being an engineer was not the way to financial freedom, much to the behest of my parents. I ended up becoming an engineer—went to UI—but very quickly after graduating, I lasted about 13 months in the space and started doing real estate. In the beginning, it was flipping, buying rentals and holding, a little bit of wholesaling, and then very quickly I found out that it’s not as passive as it’s chalked up to be.
I realized that the biggest liability I had was the people living in my assets. I was trying to figure out a way that I could get access to leverage and the tax advantages of real estate, but without having anybody living in my assets. That’s when I came across self-storage. Between 2016 and 2018, I sold off my entire rental portfolio and then started investing in self-storage. We bought our first one in August of 2018, and as of the end of August 2026, I am now up to 58 facilities.
Nate Hambrick: Well, that was going to be one of the things that I really like about self-storage. You don’t have people living there. First of all, you don’t have advanced plumbing for the most part, but also you can raise rents on a monthly basis instead of a yearly basis if they don’t pay. A lot of things are favorable because it’s a lot easier to kick out a self-storage client than it is to kick out Dorothy and her five children. For you, as you want to be a kind-hearted person as you’re investing, walk our listeners through what that actually looks like. What are some of those tangible benefits in a little bit more detail?
Fernando Angelucci: Yeah. Number one, you kind of hit the main nail on the head here: we do not have evictions in our industry. We are guided by property or lien law as opposed to tenant-renter law. When somebody puts their possessions in our storage unit, they are automatically giving us a lien against their possessions. If they do not pay, immediately access to their unit is taken away until they come current. If they don’t come current, depending on the state, anywhere between 45 to 60 days, I’m able to auction off their possessions to pay back the rent plus any type of fees associated—lien fees, auction fees, late fees, et cetera.
When the turnover comes about, as opposed to the nightmares I had in rental real estate where you walk in, the carpet’s all black, it smells like cat pee, and you have to change out all the flooring and painting, taking three to six months to get a new paying tenant in place—in our business, usually the day the unit is auctioned off, you have a new tenant in there. The person that does the turn is actually the person that bought your auction unit. They actually have to put up a security deposit to leave it broom-swept once they take all the possessions that they bought out. So way less headache and way less downtime than you would have on habitation-based real estate. That’s one of the main things.
Bronson Hill: I also want to say, I know you said you are actually not in the US right now and you do a fair amount of traveling, so I want to talk a little bit about lifestyle. A lot of us here—some people are passive, some people active—and you want to talk about the creative financing side of getting into this. But for you, you’re able to travel a significant amount of time. Talk about your team or what enables you to be able to travel so much and have this all taken care of for you.
Fernando Angelucci: Yeah, so we’re a private equity company. What we specialize in is deal acquisition and structuring. We only go after deals large enough that we can support an entire professional team around us. Typically, what we’re buying is going to produce at a minimum $50,000 in gross income per month. At that level, I’m able to hire a full third-party management team that performs the value-add that I like.
If there’s a construction component, I have a full-time construction manager, a full GC, an owner’s rep, what have you. I went from doing 70 transactions a year to doing maybe eight a year—much less stress. When you move up into the commercial space, you have access to the best of the best, right? Somebody that knows how to build industrial or self-storage isn’t going to be flipping houses on the side.
Right off the bat, when you’re in that small multifamily or single-family home space, you get the leftovers of all the people that can’t compete in the industrial and commercial side of the world in the 10 to 100 million dollar transaction space. Because of that, you have a team that is professional and knows what they’re doing. Typically, they’re bonded, licensed, insured, and professional at what they do.
What we do is find the deal, do the value-add, and structure things creatively—not only on the financing and debt side, but also on the equity side. Then we hand everything over to the teams to manage for us and check in with them depending on what stage of the project, either on a weekly, monthly, quarterly, or yearly basis when it comes to stabilized properties.
Nate Hambrick: You bring up a good question that I was going to ask you. I’ve had conversations with people like Hayden Crabtree and AJ Osborne, who owns $600 million of self-storage assets. His belief is that there’s a lot more competition today than there was 10 or 12 years ago, which I believe to be true. But obviously, you’re crushing it. Would you say the niche that you’ve carved out for yourself is that creative financing, or how do you still turn a nice profit and keep your margins really strong?
Fernando Angelucci: Yeah, and that’s totally true. A decade ago, you’d easily be able to buy listed properties at double-digit cap rates. Those days are long gone just because of the pricing pressure of other alternative investors flooding into our market. It is what always happens: the office guys go into multifamily, the multifamily guys go into the next hot thing on the block, and they bring all that capital with them, pushing down those cap rates.
So we have a three-part strategy. The first is a portfolio strategy. Self-storage is extremely fragmented when you look at the market. Only about 30% of the entire self-storage ownership is publicly traded REITs and top 100 operators that me and AJ are part of.
The other 70% are mom-and-pop operators. These are usually the original owners or second owners. They’re on their first, second, or even third retirement in some cases. There’s a lot of value in building up portfolios that are accretive to a larger operator and then pushing them up the feeding chain.
As opposed to trying to buy one facility and sell that one facility to somebody else, where you’re selling to people that buy just like you with the same type of cost of capital. The key is to sell up to the chain where they have a cheaper cost of capital. I’m going to get a lot of these mom-and-pop facilities and expand them. On average, we’re trying to get them up to about 65,000 square feet or higher just so they’re of operational, institutional quality. Then we portfolio those in 15 to 20 property packages and sell them up that chain.
Not only are we getting a bump in the increase of net operating income, but then there’s also cap rate compression. Instead of me selling to somebody that has a 7% combined cost of capital, I’m selling to someone that has a 4% or 3% combined cost of capital. If I sell a 6-cap to them, they’re doubling their money; versus if I were to buy a 6-cap, I’d be losing money.
Bronson Hill: It’s amazing. The roll-up strategy exists in business—it could be car washes, gas stations, medical practices, or even real estate. We see this in multifamily and mobile home parks. When you have a large portfolio and it’s all run the same, there are these larger operators that want to buy it because it’s much more synergistic. We’ve seen it with car washes where we’re buying or building—three to five times profit is pretty common for car washes, but if you have 20, 50, or 100 of them, you can sell them for 10 or 20 times. There’s just this multiple that goes up that gets juiced, which is really powerful.
I want you to talk for a minute about the creative financing side. Talk about some of these deals you’ve gotten—have you gotten some of these for no money down? My question is, if somebody is listening and they want to do this and find some of these mom-and-pops doing this out there, could they make this their part-time gig for a while to try to identify these 5 or 10 million dollar places? Could they find a way to walk away with little or no money down, or have some sort of earnout? What are some of those strategies people use or that you’re using?
Fernando Angelucci: Yeah. Low or no money down is kind of the beginner level of seller financing. Where you really make a lot of your money is once you start getting up to that intermediate or professional level of negotiating the paper itself so that the paper has value. Here’s a perfect example.
Typically, when people try to do seller financing, they’re competing against other people offering cash or cash equivalent with some bank to take them out. The problem is you’re still competing on price. But what if I can tell you that you can actually offer a higher price than all the competitors through your seller financing structure?
The reason you’re able to do that is everyone always looks at one side of the deal, which is the asset itself, and never actually looks at the financing side of the equation. They think everybody has the same type of financing that they’re competing against, and hence why they have to buy it at a said cap rate or debt coverage ratio. But what people never look at is the total cost of their hold.
Let me say I’m buying an asset for 3 million dollars. That 3 million dollar asset doesn’t cost 3 million dollars, because if I’m planning on holding that asset for say 10 years at a 6.5% interest rate, I’m actually paying 4.5 million dollars for that property once you take into account your holding costs and the interest that you’re paying on that entire hold. Now I know that’s the top rung I have: I can offer 4.5 million dollars if the seller’s willing to carry the paper at 0% interest for 10 years.
Then you can start breaking it down and seeing where you can land where you are getting the wants and needs fulfilled of the seller while also making a win for your side. Let’s say the seller is selling. Most people think they’re selling because they want the cash. Turns out that is not the case most times people decide to sell. It may be portfolio allocation, tax reasons, wanting to retire and travel, or putting a grandkid through university.
What you do is start slowing down the conversation and try to find the why behind the why. Act like a four-year-old and ask “why” five times. Why do I have to go to bed at this time? Because you need to be rested. Why do I need to be rested? Because if you’re not rested, then you’re going to cause a nightmare for mom and dad, or you’re not going to be paying attention at school and fall behind.
Nate Hambrick: Do they ever get annoyed, or is it very easy to just go in and ask questions that nobody else is asking?
Fernando Angelucci: The very first question I ask is, “Okay, you want 3 million bucks for this deal. What are you going to do with the money after I close on this?” It’s crazy how no one ever asks that of a seller, and that’s usually the very first thing.
“Well, I’m going to put it into a savings account making 1%.” It’s like, okay, you’re giving up a cash-flowing asset to switch it into 1%—why are you going to do that? “Well, I need a little bit of cash because I’m going to send my granddaughter to University of Illinois.” Okay, so what you’re telling me is you need cash to send your granddaughter to University of Illinois. I’m assuming that a four-year degree doesn’t cost 3 million dollars, and I’m also assuming that you don’t need that 3 million dollars in the first semester of that four-year degree. Is that right? “Yeah, that’s right.”
What is that cost for that tuition? “It’s 25 grand twice a year.” Okay, what if I were to pay you 45 grand twice a year? Is that something that you’d be willing to take a look at? By the way, when I pay you that, instead of you receiving 3 million for your deal and having to pay 30% in tax on that, what if I give you 4 million and you only have to pay 10% in taxes as opposed to 30%? Is that something you’d be open to? You just start opening up that conversation to unlock why they are actually selling—what is the why behind the why behind the why?—and then structure the deal.
Bronson Hill: I love that. You’re getting to the core of it, because somebody might think they’re just selling an asset, but the why is so much more important. This is where it gets really interesting. At the end of the day, when you say you’ll pay 4 million dollars, with the finance cost, it ends up being what the finance costs would be for you anyway, but for them, it’s 4 million dollars. You’re basically saying, “Okay, I’ll pay you more and we’ll just do payments.” You basically help create a win for you and a win for them.
Fernando Angelucci: In most cases, it’s not me paying 3 million when everyone else is paying 3 million. It’s me paying 3.2 million as a purchase when everybody’s paying 3 million, but then I’ll give them a $100,000 LP equity position and push a bunch of depreciation their way so now they have a lower tax bill. It’s not how much they’re selling it for; it’s how much they actually get to keep in their pocket.
If you can describe this to them—and a lot of these business owners are pretty savvy about that—they know that if they sell at 3 million dollars and their basis is X, they’re going to have a $400,000 tax bill at the end of the year. How about we stretch that over on a contract? In addition to that contract, I’m going to give you some bonus equity in the deal. Now the seller is on your team. They’re not going to lie about their financials because now they have this $100,000 that may turn into $200,000 because they’re an LP just like all your other LPs.
In addition to that, you can structure something around their true reason for trying to sell. On top of all that, because there are no banks involved, there’s no standard legal language for these loan docs, so you can start putting in insane clauses that help create value in the paper itself where nobody else can.
Substitution of collateral, for number one. “Well, Fernando, you say you’re going to pay me interest for 10 years. What happens if you refinance or sell in year three? I don’t get all that interest.” You know what, Mr. Seller, you’re totally right. What if I were to guarantee you that interest for the 10 years? Is that something you’d be interested in? “I would love that.” Okay, here’s how we’re going to do it: once and if I decide to sell or refinance this in year three of the 10-year balloon, what I’m going to do is substitute your collateral with another property that I’m buying of greater value than the one I’m buying from you today.
All of a sudden, now I’m creating warehouse lines of credit that I can move from sellers to other properties. Even when I’m competing on a property where the seller is unwilling to get creative on the financing, I still have creative financing that I can bring and pay more than all of the competitors on that deal.
What if you allow for the loan to be assumed? Now I can sell that deal at a higher value than all of the comparables because my property comes with 3.5% debt when everybody else is paying 7.5%. There are all these types of contract terms that you can put into the loan docs that crush it.
With almost all objections that come over, there’s always a way to ask: how do we make this a win-win or a win-win-win? A win for the seller, a win for me, and a win for the investor.
Bronson Hill: I love you talking about how you create wins and value. When you work with mom-and-pops, you remove the broker and the middleman. That’s one of the issues, right? When you have a broker, has that been an issue sometimes? The bigger the deal, you get more of these guys trying to buffer the conversation, saying, “I’m not going to tell you why they’re selling,” and getting in the way of that.
Fernando Angelucci: Yeah. If brokers want to work with us, we usually tell them we have to get on a Zoom call. They can be on the Zoom call with us, but I want to talk to the seller directly. The nice thing is, very quickly brokers started to realize that we were able to do deals that no one else was able to do.
Some seller had this pie-in-the-sky number that some other broker whispered in his ear when interest rates were 0%, and now that’s an anchored price that he’ll never get off of. No one in the market is willing to make an offer at that price. Now that’s wasting the broker’s time because he’s listing it knowing that he’s never going to get an offer or get paid on that deal, even though he may already have money into that deal for photography, drone footage, and analyst salaries to run the numbers.
All of a sudden, if you make a name for yourself as a buyer that can buy deals no other buyers can do, they start bringing deals to you and say, “Hey, what do I have to do to get this seller to sell his asset?” I say, “Listen, my structures are very creative. Before I even tell you how these things are structured, I guarantee that you’ll get your full commission at closing. Your commission will not be stretched over time, and I will get this deal done.” All of a sudden, they’re open because their number one concern is whether they are going to get paid on the deal. We’ve trained brokers in that way.
Nate Hambrick: That makes sense. I love everything you’re saying. The thing you brought up that I can’t believe I never thought of is pushing $100,000 as an LP investment so that they can get the depreciation, which makes so much sense because they’re going to have a tax bill whether it’s from the sale that you’re doing, another sale, or other income that has nothing to do with you. They’re giving up their ability to write that off on their taxes, and you’re giving it back to them. I can’t believe this is the first time I’ve ever heard somebody talk about that, which is just genius.
What I’m hearing you say is that after a couple of deals with these brokers, they realize they are still getting paid the full amount upfront and they want to send you deals. How many deals like this are you doing every year?
Fernando Angelucci: On the broker side, I’d say maybe 10% of what we buy is through brokers. The other 90% is through a direct-to-seller channel that we run: cold calling, finding them at industry trade shows, buying them dinner, adding value, and anything we can do to be in front of them and differentiate ourselves. There are way more brokers than there are buyers.
Sellers are getting called three times a week by some kid that just started at Marcus & Millichap or JLL saying, “Hey, do you want to cut your teeth on a good self-storage team?” They’re hitting the phones, calling a thousand people a week, and offering free analyses. Sellers are tired of hearing that. They just want someone that’s got cash, saying, “Listen, we don’t need any brokers involved.”
Brokers are great—I’m not here to put them down—but when I’m selling my assets, if I don’t have to pay 4% to 6%, that’s a plus for me. If I know I have a buyer in hand and I can talk to them directly, it’s going to be a lot more valuable than some guy saying, “Hey, I have buyers in your area looking for properties of your size.” It’s like, you don’t have any buyers for my property; you just have buyers in my area looking for properties like mine.
Bronson Hill: Yeah. When you own stuff, you start getting all these emails and calls. Nate, I know you’re a big leverage guy. What’s coming up for you as far as leveraging this for the average investor who wants to start doing something like this?
Nate Hambrick: What he’s talking about is amazing, right? It is obviously very advanced, but the easiest way that I can tell somebody who’s never done this before to start is through house hacking. We have a tenant in this office building right above us that’s moving out next week. She’s paid us $72,000 over the last few years. That $72,000 required almost no effort. I never see her because she has a back entrance. I’ve never dealt with a leaky pipe or anything—she’s been completely invisible. In fact, my son didn’t even realize she lived here until yesterday. True story. He’s like, “Who’s that?” She’s been here the whole time, since before you were born!
Anyway, that’s an easy way that people can get into this, because a lot of these strategies are magnificent and amazing, but where do you get started? An easy way to get started is to find a house with a back unit, a duplex, or a garage that you can renovate. It requires very little skill, just a lot of tenacity, and that can get you started. Once you’re started, you’ll keep finding these avenues.
Fernando, feel free to tell me if I’m wrong, but I’m going to guess you started smaller than you are today. You learned one or two strategies, then a third, then a fourth, and now you’ve got a hundred strategies, roll-up strategies, and all this stuff. But that’s only possible because you started small. Would you agree, or what would you add to that?
Fernando Angelucci: Absolutely. Starting small reduces your risk, but you also have to make sure that you’re spending money on education. My partner and I have always set aside 1% to 3% of gross revenue—not net, gross revenue—to go into education. What you’ll notice is that 1% to 3%, if you’re doing it right, is going to start growing, and very quickly you’re trying to figure out how to spend $100,000 or $200,000 a year on education.
Where I have learned a lot of these strategies is by eventually joining these elite masterminds where it’s $35,000 a year just to be in the mastermind, plus the travel once a quarter to stay in a hotel for a week. Then you start meeting other people doing this. A lot of the strategies that I’m talking about I learned from various seller finance guys through the years—Mike Jake, Eddie Speed. They may not apply directly to my industry initially, but it’s paper. It doesn’t matter what the asset is; you can negotiate the paper the same.
Bronson Hill: That’s amazing. I’m the same—I’m big on being in the room. You’re the average of the five people you spend the most time with if you want to grow in anything. That’s why we run the Wealth Forum, which is our mastermind group with high-net-worth investors. We meet quarterly, and it’s been incredible. I pick up on things, we learn new things, and we share information.
Let me ask you this: as you’re traveling and learning, what’s next for you? Is it selling this whole portfolio to a larger group and starting over doing something different? What’s the evolution? Where do you see this going for you, Fernando?
Fernando Angelucci: Yeah, I’m somebody that believes that shiny object syndrome is the easiest way to destroy businesses. You have to focus on your niche until you become the very best in that niche, and then you can start branching into things that are adjacent.
One of the new things that we’re doing now is what we call micro-bay industrial. As opposed to having my smallest unit be a 5×5 and my largest unit be a 10×40, now I’m going after the home services crowd. My smallest unit is a 30×50 with a large commercial overhead door and maybe a small bathroom in there, and the largest unit may be a 100×50.
We’re focusing on that space because after COVID, a lot of these last-mile shippers—the Amazons, the UPSs, the FedExes of the world—bought a lot of the spaces that these home services guys were using. Contractors, plumbers, HVAC technicians, carpenters—those types of guys have nowhere to go.
Now we’re seeing that if you provide a great product for them, not only are they paying the same, if not better, rates per square foot than self-storage clients, but typically they stay way longer. They either stay until their business gets so big that they have to buy or build their own warehouse, or their business fails. Unlike self-storage where your average tenant is staying anywhere between three to nine months, these guys are usually staying 4, 5, 10, or 20 years.
It becomes even more of a lifestyle business because there’s not much you really need to do. You can also shift this asset: instead of working on self-storage where the tenant basically pays for nothing except for rent, once you go to the home services guys, you can do triple-net type deals. They’re paying for a portion of the common area maintenance, insurance, and taxes.
Those are the two places where most businesses are really suffering right now—taxes increasing and insurance going through the roof because of all the natural disasters we’ve had and municipalities running out of that free COVID money the federal government gave to them. They have to raise property taxes, and they usually hit the commercial clients first before they hit the residential clients. Residential clients each represent a vote, versus hitting one commercial guy who owns 50 properties where losing that one vote is not that big of a deal.
Bronson Hill: What would you say if someone is a passive investor who’s kind of new, and they think this sounds great? What is step one or two of moving toward doing this yourself or making yourself better? Do you have any suggestions for an investor on what someone should be doing to improve themselves?
Fernando Angelucci: Number one—I’m going to keep hammering this—I’m a huge proponent of education. Get educated. Learn your space as well as the person running it, whether you’re going to be an LP and invest passively or do this professionally. You need to learn that space very well.
There are a bunch of free resources, but free resources only go so far because it takes effort and resources to give you those free materials. Eventually, if you’re planning on investing $100,000, $200,000, $500,000, or a million bucks, spend $10,000 to go into a mastermind in whatever industry you’re trying to enter, or $35,000 to hire a feasibility consultant. That’s going to help you decide whether this is too hard and you’d rather just give your money to Fernando to go do it, or if it isn’t as hard as you thought at first and you can become Fernando’s competitor.
Bronson Hill: I love that. The nice thing about real estate is that it’s such a multi-trillion dollar industry with so much out there. I love when people ask me, “Bronson, how’s the real estate business?” I’m thinking, that’s a pretty broad question! There’s so much to it. There are people that only do niche things.
I’m building a place now in LA, and you’ve got the guy whose all-day job is septic design or septic installation—that’s all they do. There are so many things that make up real estate, whether it’s investing or construction.
Fernando, I just want to celebrate you, man. You are a wealth of knowledge. Congrats on all the success and the ability to live the life that you want to live, and really creating that for other people as well. You’re doing it, and congrats—that’s amazing. How can people follow you, reach out to you, hear about what you’re doing, and connect about your deals?
Fernando Angelucci: There are two ways to reach out. If you’re more of a passive outreach person, go to our website: ssse.com—that’s three S’s and one E. If you’re more active and listening to this right now thinking, “I need to talk to Fernando right now,” I’ll give you my cell phone number. It’s my real cell phone: area code (630) 408-8090. I know it may seem crazy to put my cell phone out there, but I’ve been doing this so long and it’s crazy how many people don’t take advantage of that and reach out. I only get maybe three or four calls a month from people that heard me on podcasts. It’s wild, so feel free to use it.
Bronson Hill: I love that. That’s huge. Take advantage of that, guys—give him a call and connect. I talk to investors every week, and I think it’s really valuable.
Sit tight, Fernando; Nate and I are just going to wrap the episode here. Nate, I thought there was a lot of wealth here, man—a lot of great stuff. I loved some of the creative financing stuff that he was talking about. What were some of the big takeaways for you?
Nate Hambrick: I know I already brought this up, but it is so genius to give people depreciation back when they sell an asset. I can’t believe I’m not doing that. I can’t believe everybody’s not doing that. It just makes so much sense, because that’s one of their biggest pain points. It’s the bittersweet part of getting rid of an asset: you’re going to have a taxable event. Although there are other ways that you can shield yourself from that, I think that’s such a simple and easy way to get sellers—especially sellers of a former generation—on your side. Showing them, “This is what your tax is going to be, and this is what it’s going to be after the depreciation.” I just thought that was a pure stroke of genius that I wish I’d known about sooner. How about you, Bronson?
Bronson Hill: It’s amazing. For anybody listening here wondering what the next step is, I think it’s crazy sometimes. I’ve raised over 60 million dollars for different real estate deals and done 2,500 multifamily units across different assets. A lot of it just starts with a small thing. Just saying, “I’m going to figure out how to do this,” and moving forward.
If you got inspired by this and want to try creative financing, reach out and talk to mom-and-pops. And ask better questions. That’s one thing I got from this: asking really good questions that other people don’t ask. When you think about it, it’s really straightforward. This person is taking an action for a reason, and that works in every situation.
If you see somebody acting in a way that doesn’t make sense to you. You can ask, “What are you hoping to accomplish by this?”. Or “What are you hoping to achieve?” It opens up the mind to what they’re thinking about. And allows you to become a problem solver. A lot of people assume they know what people think or want, or what they’re going to say. But we don’t know what they’re going to say. If you’re willing to get in and have those conversations, that’s where the magic happens. And where deals are made.
That’s why people go on websites like LoopNet or Crexi. Start finding these deals that nobody else wants, and find a way to make them work. Because they’re willing to do the work to figure out how to solve them. If you’re a problem solver, you can always find a way to get paid and create win-wins.
We appreciate our audience here for taking the time to educate yourselves. It’s an honor to do this. We love creating the Mailbox Money Show for you. We would love to hear any feedback from you. If you haven’t joined our investment club, check out the link below or go to bronsonequity.com. We have some exciting new deals coming up soon, so we look forward to connecting with you on that. Thank you to everybody for joining. And we’ll look forward to seeing you on the next episode of the Mailbox Money Show.
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