Our guest today is Scott Krone—founder of Coda Management Group. Coda teams up with investors to purchase strategically located, undervalued warehouse space and convert it into climate controlled self-storage facilities. They are a top three operator.
Scott began his career in multifamily 25 years ago and when the crash came in ’08 he began buying into the commercial realm and started seeing that there were some inefficiencies within the self-storage arena that he could take advantage of.
I think the biggest thing that we try to do is we’re always analyzing risk, we’re looking at stress tests, we’re looking at how to minimize that risk in the marketplace and the way we’re doing that is really down the front end and that’s the reason why we’ve chosen this vehicle because of the fact that we can assess that risk going into it.
Scott Krone
Listen in as Scott gets into the weeds of self-storage and why it makes such a great investment. As Scott describes it, “it’s apartments without toilet’s”… a more simplified version that costs about 1/10th of multifamily. There’s a lot less risk making it the safest asset class in real estate with the lowest default rates of all asset classes.
We delve deep into:
- The costs that go into buying a building
- Location, Location, Location
- Mitigating the risks
- A typical hold period
- Creating value
- The definition of pace financing and opportunity zone
- Investor’s ROI
Plus, find out the biggest mistake Scott sees people make in the self-storage arena and so much more on today’s Episode of The Art of Passive Income!
TIP OF THE WEEK
Mark: Learn more about Scott and his company at CodaMG.com.
Scott: My tip of the week is just to Google the 12 Steps to Intimacy in Attracting and Keeping Customers. If you think about this through the same concept as going through and building a relationship with your customer, you can apply the same 12 Steps to marketing and to your customer, too.
Scott Krone: Check out the book, The Road Back to You: An Enneagram Journey to Self-Discovery by Ian Morgan Cron. This book has helped us the most in the past few years. The concept is—that we all have— the nine personality types; the idea of this is the more healthy you are, the less this personality types get highlighted; the less healthy you are, they become more magnified and ugly in essence.
Isn’t it time to create passive income so you can work where you want, when you want and with whomever you want?