Navigating Self-Storage Investment in a Changing Market

The Richer Geek

We welcome back Jacob Vanderslice, Principal of VanWest Partners, a Denver-based real estate firm managing over $195 million in assets. Jacob discusses the challenges of today’s real estate market, from rising interest rates to shifting investor sentiment. He shares strategies for managing risk, the effects of market fluctuations on self-storage investments, and how VanWest uses conservative underwriting to stay resilient. Tune in for his insights on the state of real estate, the bid-ask spread, and the importance of conservative leverage in today's economy.

In this episode, we're discussing...

• Challenges in the Market: Jacob discusses the difficulties faced in capital raising due to rising interest rates and how they’ve impacted real estate transactions.

• Risk Mitigation: VanWest Partners takes a conservative approach to underwriting, ensuring their models account for possible market fluctuations.

• Investor Sentiment: The episode covers the shift in investor behavior, with many opting for safer investments like treasury bonds over riskier real estate projects.

• Bid-Ask Spread: Jacob highlights the gap between buyer and seller expectations, particularly in self-storage and other asset classes, as interest rates affect asset valuations.

• Self-Directed IRAs: Learn how investors can use self-directed IRAs to invest in private real estate vehicles and the tax implications of using retirement accounts versus cash.

Resources from Jacob

LinkedIn | VanWest Partners | Jacob's Email

Resources from Mike and Nichole

Gateway Private Equity Group | Nic's guide