All Forum Posts by: Fernando Angelucci

https://u109893.h.reiblackbook.com/generic11/?p=6152

Scott Meyer's material is gold!

We purchase 3 facilities in the last year and have another 4 under contract currently with 22 left to underwrite from our most recent mailing campaign. All from working with Scott.

@Johnny Horner be careful with the advice you are getting from those that 1.) do not own self-storage at all and 2.) that do not own storage in small towns. Self-storage is much different than any other type of real estate.

We currently own storage in small towns and love it. The owners are willing to sell at much higher cap rates (we have been getting 9.4% - 14.1%) day 1 and doing value-add into the 16-18% ranges.

The storage facilities we have in major MSA's are the worst performing out of all of them due to high competition from investors and REITs dropping entrance cap rates into the 4.5% - 7% ranges with little to no value add opportunity on those facilities. In addition, more investors are building ground up or expanding their facilities in those large MSA's further increasing the supply index into unsustainable ranges.

Make sure the supply index is suitable (we like 3-5 NRSF/capita in the trade area) and that there is value add that can be performed. The non-sophisticated owners in these small towns are very likely to have well below market rents, management and expense inefficiency, no website, no advertising, no additional profit centers. These facilities are amazing opportunities.

We have purchased 3 in the last year and have another 4 under contract currently. Still have another 22 facilities to underwrite from our most recent mailing campaign to 9,000 owners across 24 states.

Thanks @Neil Henderson!

Hello @David Dachtera. Here is what we are seeing:

1. Days on market and variance between list and sale price are increasing.

2. Retails buyers are weary and are not entering into bidding wars. On the other hand, investors are having a hard time getting a hold of inventory and are compressing their margins to compete with new "investors" that are coming out of all the real estate education programs.

3. The bread and butter 3 bedroom 2 baths are still moving, specially in the lower tier price ranges. Luxury homes are getting hammered.

4. On the new construction front, there are a lot of build-to-rent deals because of cheap money but many of the power builders for retail buyers are slowing down due to increase in material costs, softening of the market, and lack of quality labor.

This is my assessment of the Metro Chicagoland Area. We have stopped flipping properties and are selling all of our rental portfolio to trade up into self-storage which historically has performed well in recessions. We are also moving towards a larger cash position in order to weather the coming storm.

I do not think a "bubble" is coming from the mortgage or property sector this time but from the $1.6 trillion dollars in government backed student debt which is already up to a 15% default rate. In a gig economy, many of the students outside the STEM and a few other fields are having trouble paying for their $80,000+ student loans which is dropping credit scores, creating difficulties in rental applications being approved, and delaying house-hold formation which in turn causes consumer spending and consumer confidence to drop heavily. The U.S. government is relying on those debt payments as well as the consumer spending to unwind their books from the last few rounds of QE in addition to the supposed inflation that was to occur after such QE which never came. The amount of debt as a ratio to GDP is in dangerous territory where now there is a negative effect of government spending on return because the interest paid on such debt is at a critical threshold.

At best I think we are going into 10-30 years of stagnation as was seen with the "lost decade" in Japan. At worst there is a black swan event due to the hyper-connectivity and systemic risk that is present in our financial industry due to the consolidation of the too big to fail banks which could lead to a Cypress-Greece style credit freeze and liquidity crisis.

I hope I am wrong but I am hedging my portfolio in the chance I am right.

Hello!

We are looking to be placed on wholesalers lists for properties in the Chicago land area. (Cook, DuPage, Kane, Will, & Lake counties)

Please add us with the following information:

Name: Deals

Email: [email protected]

Phone: 312-535-0305

Thanks!

Give me a call anytime

I am putting together a pitch book for an $8M ground up self storage development. Would love to trade with others to compare notes and brainstorm.

Cheers!

This property sold a few days after we posted it.

Thanks!

We have available for immediate assignment a brick 2-flat in Northeast Lawndale, just west of Tri-Taylor by a few blocks. See below for details and showing times.

1113 S. Sacramento Blvd., Chicago, IL 60612

Brick 2-Flat

Price: $75,000.00

5 Bedrooms, 2 Baths Total

Unit 1: 2 bedroom, 1 bath | Unit 2: 3 bedroom, 1 bath

Property Size: 1,968 sq. ft.

Lot Size: 3,150 sq. ft.

Taxes: $4,202.90

Fix and Flip

Estimated Rehab: $80,000.00

Estimated ARV: $225,000.00

Estimated Profit: $47,500.00

Estimated ROI: 30.65%

Fix and Hold

Proforma Rent: $1,000 (2 bed) | $1,350 (3 bed)

Proforma NOI: $16,920

Proforma Cap Rate: 11%

Details: This brick 2-flat is not in need of a complete gut but does need rehab throughout. The property features hardwood floors and a solid layout. The property is currently vacant but once rehabbed, the 2-bedroom unit can be rented for over $1,000 per month and the 3-bedroom unit can be rented for over $1,350 per month. The 2-flat is located a block off of the Roosevelt retail corridor, near Douglas Park, Mt. Sinai Hosptial, and Lagunitas Brewing Company.

PHOTOS AND VIDEO WALKTHROUGH:https://www.dropbox.com/sh/8cmjvha9ylizoci/AABjciFvMpX4fXi1UP8qTpDca?dl=0

MLS SOLD COMPARABLES:https://www.dropbox.com/s/radng0gumf0hy2g/MLS%20Sold%20Comparables%20for%201113%20S.%20Sacramento%2C%20Chicago%2C%20IL.pdf?dl=0

We will be conducting private showings upon request. Please contact us for access.

The deal goes to the first person to sign the assignment of contract and remit earnest money. If you are a wholesaler interested in marketing the deal, you must receive our explicit approval before doing so. Please do not hesitate to contact us with any questions, interest, or showing requests.

Fernando Angelucci

Senior Managing Partner

Titan Wealth Group

Touchstone Group RE

(630) 408-8090

3023 N. Clark St., #140

Chicago, IL 60657

We have a large tear down project in unincorporated Hinsdale in the Golfview Hills Subdivision on the DuPage County side of town (lower taxes). This property is one block west from Hinsdale Central High School. Ranked the 10th best high school in IL and (10/10) on greatschools.org.Email me for the Lock Box code.

608 W. 55th Street, Hinsdale, IL 60521

Price: $285K

Lot: 12,197 Sq. Ft. (0.28 Acres)

Size: 4,200 Sq. Ft. (above grade)

Details: The previous owners tore down the old ranch home that existed and expanded the slab foundation, framed the property, put in brand new windows and doors, and put on a new roof. They had to halt construction because they did not follow approved plans and then ran out of money. We recommend a tear down to excavate a new deep basement. Materials can be salvaged. After speaking with the city, they will allow up to 4,200 sq. ft. above grade and are willing to drop all code violations in order to remove this blighted property that is so close to their best high school.

PICTURES and VIDEOS: https://www.dropbox.com/sh/bo40f5icouzhu5z/AAA5G5QmLTQYes_Szw9zIzUBa?dl=0

Email me if you would like recommendations for attorneys, contractors, or financing on this property. The deal goes to the first person to sign the purchase agreement and remit earnest money. If you are a wholesaler and are interested in marketing this deal, you must obtain our permission first. If you have any questions or interest in moving forward, please do not hesitate to reach out as this one will not last long!