Ep. 168: How to Find, Develop, and Finance Self-Storage with Scott Krone

Scott Krone is the Founder of CODA Management based in Chicago, IL. They partner with investors to find and convert warehouses and office buildings into climate-controlled, self-storage facilities. CODA has over 47 syndications and 400,000 sq. ft with 2,750 storage units under management. Today, Scott shares where he finds opportunities, his criteria and tips for working with local officials. 

 

Partner: The Real Estate Syndication Podcast hosted by Whitney Sewell

 

Key Insights

• Could not find distressed self-storage, so he focused on the development
• Converted an empty warehouse into a self-storage
• Started in Chicago, expanded to Illinois, Wisconsin, and Ohio
• Future opportunities in Kentucky, Michigan and North Carolina
• Seeks 70,000 – 110,000 sq. ft of empty commercial spaces
• PACE Financing and Opportunity Zones
• Hire CubeSmart to manage the renovated self-storage facilities
• Biggest risk for self-storage is competition within a 3-5 mile radius
• Key Stat for Self-Storage: 7 sq. ft of lockers per capita
• Commercial and Resident Users for Self-Storage 
• Check with city officials on zoning process, permits, and approvals
• Leverages PACE Financing and was the first opportunity zone and PACE financing in Ohio 
• PACE is a program providing energy efficiency financing
• Opportunity Zones are an enhanced benefit, not as the reason to buy
• Drive for subcontractors on projects when you need specific labor

 

Partner: Download a Free Sample Apartment Deal Package 

 

Bull’s Eye Tips: 

 

Resource:

 

Apparent Failure:

Selecting the wrong business partner

 

Most Recommended Book:

The Road Back to You by Ian Morgan Cron

The Sacred Enneagram by Christopher Heuertz

 

Most Recommended Digital/Mobile Resource:

Hubspot

SonicWall

 

Daily Habit:

Walking the Beach

 

Wish I Knew When I Was Starting Out:

How to mitigate risk

 

Advice for Smart, Driven College Student:

Willingness to learn and grow does not stop in college

 

Current Curiosity:

Utilizing Enneagram 

 

Best Place to Grab a Bite in Chicago:

Lou Malnati’s

 

Connect with Scott:

Website: codamg.com

 

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