Our guest is Jacob Vanderslice, a real estate developer and investor with a diverse portfolio. In this conversation, we dive deep into succeeding in closing. We talk about the different ways to fund your deals, the benefits of self-storage investing, and what it’s like to connect with institutional investors.
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Learn more about Jacob and his journey at reiclarity.com!
“We’re not seeing appraisal misses on the self-storage front.”
05:17
At the beginning of our conversation, Jacob explains the basics of a commercial real estate transaction and the closing process that he follows.
- Underwriting.
- Submitting the letter of intent to the seller.
- Executing the contract.
- Depositing the earnest money (typically between $50k to $500k).
- Due diligence and ordering a variety of third party reports about the property.
The appraisal is a very important part of the closing process. An appraisal is designed for lenders to get third-party validation on the value of the property.
“We think the definition of wealth is durable, recurring revenue that gives you an above-market yield.”
11:22
Jacob has a very diverse portfolio and a big part of it is self-storage. According to him, self-storage has historically been very resistant to recessions and downturns and the revenue stream is very granular and dynamic. His company got into this asset class in 2015 and has only sold 1 out of their 35 self-storage facilities due to the steady cash flow.
“Raising capital is all about creating credibility. You’re not pitching or asking for money, you’re educating someone on the asset class.”
22:10
Jacob explains the difference between a syndication and a fund. Syndication is getting into one single deal, while funds are investing in a collection of assets. Syndications tend to be a bit more flexible.
Jacob likes the fund system and he has self-storage funds. Their first fund was just $10M and their most recent one was around $40M. This is a small amount compared to when institutional investors are involved, as those funds can be around $300M.
Mentioned in the show:
Learn how to grow your portfolio and reach incredible success the right way! Visit us here for everything you need to know: www.shineinsurance.com/reiclarity.
Special thanks to Jacob Vanderslice for taking the time to share so many great insights with us
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