Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Michael Margarella

Michael Margarella has started 2 posts and replied 161 times.

Post: Interest in self storage syndications

Michael MargarellaPosted
  • Investor
  • New York City
  • Posts 164
  • Votes 75

We syndicate larger self-storage deals and work with passive investors. 

We like self-storage because even if there is a recession, and people downsize, those people will have a need for self-storage, as evidenced by storage occupancy rates during past recessions. And during inflationary times, our rental rates increase. We're also able to evaluate our rates, and keep pace with inflation, on a monthly and quarterly basis because of shorter term leases. 

These syndication can provide an 8%+ cash-on-cash return - providing investors monthly cash flow - and a 15-20% IRR over the length of the project. I'd be happy to connect.

Great post! Investing in a syndication or fund could be a good fit given your situation.

I started investing in some fix and flips and some smaller residential properties from traditional BRRRs. And I just quickly found out that I wanted something with a little more scale and a little more meat on the bone. So we went into the commercial space and pivoted to self-storage. We like self-storage because even if there is a recession, and people downsize, those people will have a need for self-storage, as evidenced by storage occupancy rates during past recessions. And during inflationary times, our rental rates increase. We're also able to evaluate our rates, and keep pace with inflation, on a monthly and quarterly basis because of shorter term leases.

Now we syndicate larger self-storage deals and work with passive investors. These syndication can provide an 8%+ cash-on-cash return - providing investors monthly cash flow - and a 15-20% IRR over the length of the project. I'd be happy to connect.

Post: 18 with 45k looking to invest ASAP

Michael MargarellaPosted
  • Investor
  • New York City
  • Posts 164
  • Votes 75

Great post! Investing in a syndication or fund could be a good fit given your situation.

I started investing in some fix and flips and some smaller residential properties from traditional BRRRs. And I just quickly found out that I wanted something with a little more scale and a little more meat on the bone. So we went into the commercial space and pivoted to self-storage. We like self-storage because even if there is a recession, and people downsize, those people will have a need for self-storage, as evidenced by storage occupancy rates during past recessions. And during inflationary times, our rental rates increase. We're also able to evaluate our rates, and keep pace with inflation, on a monthly and quarterly basis because of shorter term leases.

Now we syndicate larger self-storage deals and work with passive investors. These syndication can provide an 8%+ cash-on-cash return - providing investors monthly cash flow - and a 15-20% IRR over the length of the project. I'd be happy to connect.

Post: Im 18 and just starting out

Michael MargarellaPosted
  • Investor
  • New York City
  • Posts 164
  • Votes 75

Hey Drew, Welcome to BP! Investing in a syndication or fund could be a good fit given your situation.

I started investing in some fix and flips and some smaller residential properties from traditional BRRRs. And I just quickly found out that I wanted something with a little more scale and a little more meat on the bone. So we went into the commercial space and pivoted to self-storage. We like self-storage because even if there is a recession, and people downsize, those people will have a need for self-storage, as evidenced by storage occupancy rates during past recessions. And during inflationary times, our rental rates increase. We're also able to evaluate our rates, and keep pace with inflation, on a monthly and quarterly basis because of shorter term leases.

Now we syndicate larger self-storage deals and work with passive investors. These syndication can provide an 8%+ cash-on-cash return - providing investors monthly cash flow - and a 15-20% IRR over the length of the project. I'd be happy to connect.

Great post! Investing in a syndication or fund could be a good fit given your situation.

I started investing in some fix and flips and some smaller residential properties from traditional BRRRs. And I just quickly found out that I wanted something with a little more scale and a little more meat on the bone. So we went into the commercial space and pivoted to self-storage. We like self-storage because even if there is a recession, and people downsize, those people will have a need for self-storage, as evidenced by storage occupancy rates during past recessions. And during inflationary times, our rental rates increase. We're also able to evaluate our rates, and keep pace with inflation, on a monthly and quarterly basis because of shorter term leases.

Now we syndicate larger self-storage deals and work with passive investors. These syndication can provide an 8%+ cash-on-cash return - providing investors monthly cash flow - and a 15-20% IRR over the length of the project. I'd be happy to connect.

Post: New to real estate investing!

Michael MargarellaPosted
  • Investor
  • New York City
  • Posts 164
  • Votes 75

Hi Danya! Welcome to BP! Real estate is definitely full of opportunities. Personally, we pivoted to self-storage a few years ago. One of the drivers of self-storage is the “four Ds”: downsizing, displacement, death, and divorce. All of those things, unfortunately, increase during a recession, providing a safer base case for self-storage than some other assets. Storage occupancy rates during past recessions has remained relatively stable

For example, during a recession, when folks downsize from a 3 bed/1 bath to a 2 bed/1 bath, those people, historically, keep their belongings and put them in storage.

Also, during inflationary times, self-storage operators can better manage rates because most leases are month-to-month. We're thus able to evaluate our rates, and keep pace with inflation, on a monthly and quarterly basis. I’d be happy to connect.

Post: Starting out with $250K. What would you do?

Michael MargarellaPosted
  • Investor
  • New York City
  • Posts 164
  • Votes 75

Welcome to BP! I believe investing in a syndication or fund could be a good fit given your situation.

Pick solid operators and solid asset classes. We syndicate self-storage projects. Even if there is a crash, and people downsize, those people will have a need for self-storage, as evidenced by storage occupancy rates during past recessions.

And during inflationary times, our rental rates increase. We're also able to evaluate our rates, and keep pace with inflation, on a monthly and quarterly basis because of shorter term leases.

These syndication can provide an 8%+ cash-on-cash return - providing you monthly cash flow - and a 15-20% IRR over the length of the project. Feel free to reach out.

Post: how would YOU invest $100k?

Michael MargarellaPosted
  • Investor
  • New York City
  • Posts 164
  • Votes 75

Investing in a syndication or fund could be a good fit given your situation.

Pick solid operators and solid asset classes. We syndicate self-storage projects. Even if there is a crash, and people downsize, those people will have a need for self-storage, as evidenced by storage occupancy rates during past recessions. And during inflationary times, our rental rates increase. We're also able to evaluate our rates, and keep pace with inflation, on a monthly and quarterly basis because of shorter term leases.

These syndication can provide an 8%+ cash-on-cash return - providing you monthly cash flow - and a 15-20% IRR over the length of the project. I'd be happy to connect.

Post: storage unit investing? starting out?

Michael MargarellaPosted
  • Investor
  • New York City
  • Posts 164
  • Votes 75

Hi Brandon! We pivoted to self-storage a few years ago. One of the drivers of self-storage is the “four Ds”: downsizing, displacement, death, and divorce. All of those things, unfortunately, increase during a recession, providing a safer base case for self-storage than some other assets. Storage occupancy rates during past recessions has remained relatively stable

For example, during a recession, when folks downsize from a 3 bed/1 bath to a 2 bed/1 bath, those people, historically, keep their belongings and put them in storage.

Also, during inflationary times, self-storage operators can better manage rates because most leases are month-to-month. We're thus able to evaluate our rates, and keep pace with inflation, on a monthly and quarterly basis. I’d be happy to connect.

Hi Rajesh, we operate self storage facilities and this is true. Commercial real estate values, particularly in sector like self-storage is less prone to economic volatility, offering a more secure investment option.
In fact, certain real estate classes like self-storage outperformed during the Great Recession. From 2008 to 2012, the major publicly traded self-storage companies - CubeSmart, Public Storage, Extra Space Storage, and Life Storage - saw a brief share price decline in 2008 before soaring the following three years. Not only did commercial real estate assets like self-storage outperform the market during the Great Recession, they increased in value dramatically.

Now we syndicate self-storage projects. Even if there is a crash, and people downsize, those people will have a need for self-storage, as evidenced by storage occupancy rates during past recessions.

And during inflationary times, our rental rates increase. We're also able to evaluate our rates, and keep pace with inflation, on a monthly and quarterly basis because of shorter term leases.

These syndication can provide an 8%+ cash-on-cash return - providing you monthly cash flow - and a 15-20% IRR over the length of the project. Feel free to reach out