Transforming Big-Box Retail into Self-Storage: A Conversation with Clint Harris

 

Transforming Big-Box Retail into Self-Storage: A Conversation with Clint Harris

 

Guest: Clint Harris is a seasoned entrepreneur and real estate expert who traded in his medical sales career for a life of financial, time, and location independence through strategic investments in real estate. From implanting pacemakers to converting big box retail buildings into self-storage facilities, Clint’s journey is nothing short of transformative. As the founder of Nomad Capital, he’s known for his innovative approach to reshaping the real estate landscape in the Southeastern United States. Join us in this episode as Clint shares his insights and experiences, highlighting the pivotal moment he decided to break free from the limitations of trading time for money. His story serves as an inspiration for anyone seeking financial independence through strategic real estate investments.

 

Big Idea: Clint Harris offers a groundbreaking perspective on real estate investment, focusing on converting vacant big-box retail buildings into lucrative self-storage facilities. He demonstrates how investors can achieve substantial returns with a unique value-add strategy through strategic acquisitions, in-house construction, and capital raising. Clint highlights the adaptability required to meet the evolving demands of consumers, particularly millennials, within the self-storage sector. He underscores the resilience of this niche market amidst economic fluctuations, advocating for calculated risks to break free from the constraints of trading time for money. Clint’s insights prompt listeners to assess their income ceilings and pursue avenues for greater financial freedom aligned with their long-term goals.

 

 

    

Dan: Nice. So, we were talking a little bit before the show, the big-box retail to storage conversion strategy, I guess maybe we could walk through a case study, perhaps it’s Reidsville, perhaps you have another one and really try to dial down on the numbers. You had this 87,000-square-foot building, what was the net rentable square feet, maybe how many units you got, what were some of the challenges you encountered with zoning, etc. And then maybe we could pull apart construction costs; it cost this and stabilized occupancy is this and just really detail one deal for us to kind of paint the picture of how this works.

Clint: Yes. I’ll actually give you some dichotomy here and give you 2 deals because they’re wildly different from 1 market to the other, right? The driving factor is the average price per square foot of net rentable storage in an individual market. So, we bought that 87,000 square foot Kmart in Reidsville, North Carolina for 1.5 million. This is obviously a big empty square. So, it had a pretty good big conversion rate. Depending on the shape of the building, you’re going to land between 70 to 75% of that gross area being net rentable square feet. The rest of it’s going to be hallways and walkways and offices and stuff like that. So, the choppier the building, maybe it’s 70% if it’s just a big square, maybe it’s a little over 75%, but that’s roughly where it’s going to land.

So, that building was converted to 550 climate-controlled cell storage units. And that’s based upon what’s the demand for the market. Do people want smaller units or larger units? That’s determined by a third party as well as the in-house feasibility study, but again, it really depends on the market. Obviously, the smaller the unit is, the higher the price per square foot. So, you can squeeze in a bunch of small ones. That’s better, but we bought that [inaudible].

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

https://NomadCapital.us/team/

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

 

Clint Harris & I Discuss Transforming Big-Box Retail into Self-Storage:

  • Conversion & Challenges of Big Box Retail to Self-Storage (3:34)
  • Optimal Investment Structure and Returns (10:03)
  • Strategic Property Acquisitions: How to leverage prime locations and capitalize on market demand (20:09)
  • Changing Consumer Behavior: Adapting storage offerings to meet the needs of modern renters, especially millennials (25:53)
  • Stabilization and Occupancy: Achieving high occupancy rates through effective marketing strategies and competitive pricing (30:19)
  • Calculating risk in the pursuit of financial freedom (40:13)

 

    

Relevant Episodes: (200+ Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

Real Estate Development with Darcy Marler

 

Real Estate Development with Darcy Marler

 

Guest: Darcy Marler is a seasoned real estate investor and developer with over two decades of experience in flipping houses, rental properties, land development, and new construction. From an MIT graduate to a successful real estate entrepreneur, Darcy’s journey has been marked by valuable lessons and insights. Passionate about transforming raw land into subdivided lots ready for construction, Darcy specializes in building and flipping houses, duplexes, and small multifamily properties.

 

Big Idea: In this episode, Darcy Marler delves into the transition from fixing and flipping houses to land development and new construction, stressing the need to align real estate strategies with personal preferences. He outlines risk mitigation and profit maximization strategies, emphasizing the substantial benefits of new construction, including higher returns, better tenants, and efficient management. Darcy highlights advantages such as ease of financing and incentives for developers addressing the housing crisis. He underscores opportunities for smaller investors in smaller-scale projects like multifamily units or residential development. Understanding market demand, leveraging financing, and exploring exit strategies are key takeaways for maximizing returns in real estate development.

 

 

    

Dan Breslin: Yeah, absolutely. I was excited by the topic. I think our listeners will be equally as excited. Most of us listening are probably fixing flipping houses. We are interested in buying and selling real estate. We would improve said real estate to get to that profit. And I think that our discussion today around land and development and making that transition will be a very much well-received topic by the audience and by myself today. So Darcy, would you mind giving us the background and the career evolution to getting where you’re at today?

Darcy Marler: Well, a lot of people, I was an actual IT guy way back in the day, about 23 years ago, I got tired of that. So I wanted to get into real estate and I started flipping and doing long term rentals and that led to some land development and construction. The bird, I’ve done all the strategies I’ve owned, had close to a thousand tenants and 240 renovated units, written a couple of books and then yeah. So now I’m doing a bit of everything, but I keep coming back to new. I like new, I like being creative. I like knocking stuff down instead of fixing it up now. [inaudible].

Dan Breslin: So why don’t we start with an example then this could be your first development deal, or you can not do that one. If that one’s not maybe the biggest lesson and maybe you could pick one that came with a really big lesson that helps us expand our vision from single-family fix and flip or buying duplexes that exist to ground up new construction?

Darcy Marler: Yeah, so actually the first one is a perfect one. So I had this 1950s bungalow. I was just going to flip it. The person next to me passed away, so I bought that as well. I said, ” You know what, I’ve always wanted to build. So what does that look like?” Actually I moved both of the old houses off. I didn’t even demolish them. I actually sold them. They got moved off. I split those two lots into four. I made sure all four lots were serviced and then I built four new homes and I loved it. It was exactly what I wanted. So the big thing that I’m all about too is, is not your personality to your strategy. If you’re not enjoying what you’re doing, what’s a better fit. And I love creativity. I love the pride of watching the stuff come out of the ground. I think it’s awesome.

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

https://www.hrrealestatementors.com/

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

 

Darcy Marler & I Discuss Real Estate Development:

  • Budgeting and Risk Management in New Construction (3:31)
  • Philosophies on Holding vs. Selling Properties (10:02)
  • Pre-Selling Land vs. Building Spec Homes (15:54)
  • Identifying Potential Land for Development & Subdividing (18:21)
  • Evaluating Opportunities in Aging Neighborhoods (23:16)
  • Benefits of new construction for rental properties (36:38)
  • Importance of demographics and location in real estate investment (45:36)
  • The significance of partnerships and operational support in real estate ventures (49:48)

 

    

Relevant Episodes: (200+ Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

Lease Option – Rent to Own Real Estate Investing with Adam Zach

 

Lease Option – Rent to Own Real Estate Investing with Adam Zach

 

Guest: Adam Zach, is a seasoned real estate investor, with over a decade of experience in real estate. Adam brings a wealth of knowledge and shares his remarkable journey from humble beginnings in North Dakota to building a diverse portfolio spanning multiple states, highlighting the importance of leveraging unique advantages and taking calculated risks to achieve success in the dynamic world of real estate investment.

 

Big Idea: In the episode, Zach and I delved into the strategic approach to real estate investment and risk mitigation. Zach emphasized the significance of leveraging unique advantages and taking calculated risks to build a successful portfolio. From implementing innovative strategies like guarantor bond policies to minimize risk in rental processes to scaling real estate syndication through strategic partnerships and digital marketing, our discussions highlighted the importance of forward-thinking, disciplined decision-making, and adapting business models to evolving market conditions. Through his own journey and experiences, Zach underscored the critical role of strategic foresight, disciplined execution, and risk management in achieving long-term success in the dynamic world of real estate investment.

 

 

    

Adam: Yeah, I am in North Dakota, right now I’m in Fargo. I grew up in the western part of the state in a town of about 10,000 people. So now I moved to the quasi-big city here in Fargo, which is 100,000 people, which is pretty much one square mile around you. It’s probably about the same density spread out over 500 square miles here in North Dakota. I’ve been here my whole life and that’s where I first started doing investment properties and now have investment properties in 57 cities in 25 states, doing some long-distance investing, and just love everything real estate.

Daniel: Nice. I think from your bio, what’s it been like 13, or 14 years? It’s been a while since you’ve been doing this.

Adam: Yeah. The first property I ever owned was a house hack in 2012. Took a little bit of a hiatus, but didn’t start gearing up then until 2016, or 2017. The last five years were probably the greatest growth. So I’ve been doing real estate I could maybe stretch it and say a dozen years but since that was the first property. But I would say mostly it’s been the last seven years.

Daniel: Okay. You’ve been buying, let’s say in the last 36 months since 2021. You’ve bought a few properties in this period?

Adam: Yeah. So I would say in the last 36 months, we have bought, I don’t know the exact number in the last 36 months, but I would say probably 52 homes. We’re probably averaging at least one a month and now the goal for 2024 is one home under contract per week.

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

https://HomeEquityPartner.com/investors/

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

 

Adam Zach & I Discuss Lease Option – Rent to Own Real Estate Investing:

  • Business Model Evolution: Transitioning from traditional rental properties to lease option models for sustainable cash flow and reduced turnover. (00:04:07)
  • Guarantor Bond Policies: Exploring how Guarantor policies work and their impact on tenant screening and security deposits. (00:13:29)
  • Syndication Funds: Exploring the structure and returns of syndication funds for investors, including preferred returns and profit splits. (00:23:00)
  • Tax Benefits and Depreciation: Adam elaborates on the tax advantages passed on to investors through syndication deals, including depreciation benefits. (00:30:35)
  • Chess as a Brain Development Tool: Adam reflects on the parallels between playing chess and developing strategic thinking, risk assessment, and delayed gratification from an early age.(00:39:51)
  • The Power of Partnerships: Insights into the benefits of strategic business partnerships in mitigating risks, sharing resources, and aligning interests for mutual success. (00:44:15)

 

    

Relevant Episodes: (200+ Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

Storage Yard Real Estate Development with Chris Long

 

Storage Yard Real Estate Development with Chris Long

 

Guest: Join us in this captivating interview with Chris Long, a visionary entrepreneur who transformed a simple solution into a booming real estate venture. Chris, a licensed carpenter, identified a gap in the market and embarked on a journey that led him from the cold capital of Canada to the sunny shores of Tampa, FL, where he currently spearheads Long Yards, a revolutionary concept in real estate targeting an unmet need for affordable storage space.

 

Big Idea: Chris shares his remarkable journey from identifying a market need to building a successful business empire in the real estate sector. He delves into the challenges he faced, the pivotal decisions he made, and the strategies he implemented to overcome obstacles and achieve exponential growth in the storage business.

 

 

    

Chris Long: Yeah. So I’m a licensed carpenter by trade. I was in the construction industry for 15 years and I discovered a problem in the market that didn’t exist and I needed a small affordable space for my equipment, tools and trailers, and you go to a self storage facility, but I needed a yard, but there was a gap in the marketplace. I don’t need a one to three acre parcel that I pay half million, a million dollars with it or I lease it for triple net lease for three or five years. No, I’ve seen a small medium-sized yard month to month that was secure and closed. Sometimes I believe I’m a simple person, simple problems have simple solutions. I’m like, if this doesn’t exist, I’m going to build it and sure enough, no investor would get behind me. They thought I was crazy. So I had to sell both my houses and I only had a small rental portfolio of two duplexes. So to go in on my vision, I had to literally put my mouth where I believed it and sell everything I had and it was a success. So I mean, I spread myself then getting it going. I couldn’t even afford to put the gates on the front, but I had to pre-sell the first units in full to afford to complete the buildout. But since then it’s been off to the races. We leased up completely in Ottawa, Canada. We’re building out central Florida. We have parcels and I built a franchise system, so I’m a franchisor. We have franchisees parcels under our contract in Florida, in Texas. We’re looking at Carolina and we have both five active lois and we’re just looking to expand with great people with a great business.

Dan Breslin: Yeah, it’s pretty cool and it’s timely. We’re going to dig into the 8.9 acres that I currently own that’s owned industrial that I’m deciding what I want to do with it, Memphis, Tennessee a little later in the show. But before we get into that, let’s back up to that first deal. What year was that, Chris?

Chris Long: So I bought it with my brother in 2017. We sat on it for a little bit, being brothers, we just had a different little view and it took about two years to kind of arm wrestle and figure it out. But I cut the rivet in October 1st, 2019, and my first location, Long Yards in Ottawa, Canada. Then I moved out to the states about two years ago to expand internationally.

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

https://LongYards.com/

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

 

Chris Long & I Discuss Storage Yard Real Estate Development:

  • Identifying Market Gaps: Chris discusses the inspiration behind Long Yards and the unmet need for affordable storage space. (00:02:51)
  • Strategic Partnerships: The importance of choosing the right partners and maintaining alignment in business ventures. (00:06:48)
  • The Concept of Long Yards: Chris introduces the concept of Long Yards, explaining how it combines land banking with cash flow generation. (00:13:04)
  • SBA Financing Advantage: The competitive advantage of utilizing SBA financing for real estate acquisition and build-out within the Long Yards framework. (00:22:38)
  • Stabilized occupancy rate and turnover: Chris discusses how Long Yards maintains a 90% stabilized occupancy rate, with lower turnover due to catering mainly to small businesses (00:42:41).

 

    

Relevant Episodes: (200+ Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

Navigating Market Turbulence: Lessons from Brock Holliman’s Real Estate Success

 

Navigating Market Turbulence: Lessons from Brock Holliman’s Real Estate Success

 

Guest: Brock Holliman, a resilient real estate entrepreneur, shares his remarkable journey from humble beginnings in Memphis to becoming a prominent figure in Florida’s real estate market. Starting with a lawn mowing business during the real estate depression, Brock’s tenacity and adaptability propelled him into various facets of real estate investing, ultimately leading to his expertise in the build-to-rent space.

Big Idea: Brock’s story underscores the significance of seizing opportunities amidst adversity and continuously evolving strategies to thrive in the ever-changing real estate landscape. From navigating market downturns to pioneering innovative investment models like build-to-rent, Brock’s journey exemplifies resilience, adaptability, and strategic vision in achieving success in real estate.

 

 

    

Dan Breslin: All right, welcome to the REI Diamond Show. Brock, how are you today?

Brock Holliman: I’m doing great, Dan. Thank you for having me on.

Dan: Yeah, absolutely. So we were talking about a little location stamping, and I do that often for the listeners. Just kind of give people context of where you live and what markets you’re kind of operating in. Would you mind maybe starting off your backstory with some of the locations you’ve been to where you’re at now and a summary of your business?

Brock: Yeah, sure. Yeah, I started this off, or I started my journey in Memphis. That’s where I was born and raised. I had a little lawn mowing business there that was mowing foreclosures for the bank because it was in the middle of the great real estate depression. Yeah, that was my first business and really how I made my first little couple of thousand dollars. At the same time, I had a job at IHOP. This was in high school. My father was always in construction. Well, all different types of construction, but he was really bored and all of his friends and everybody in construction at the time in the building industry was either going bankrupt or just semi-retired or whatever because the industry was dead. But I remember back then he told me that I should check into these foreclosure auctions. I remember still being in high school, he had a speeding ticket that day and I didn’t expect to see him. But I was down at the courthouse skipping school and checking out these auctions just like he told me. And here I see him walking up the steps so he could go to his speeding ticket court date. We locked eyes and that was a funny situation there. I was a little nervous, that he’d be upset, but it turned out he was super proud, and that was like a nice sense of affirmation, like you may be doing the right thing here, even though he told me to do it.

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

https://HollimanCapitalGroup.com/

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

 

Brock Holliman & I Discuss Navigating Market Turbulence:

  • Innovative Investment Models (6:15): We discuss Brock’s pivotal role in introducing build-to-rent projects and partnering with a hedge fund highlights the significance of innovative investment models in capitalizing on emerging market trends.
  • Navigating Market Uncertainties (10:15): Brock’s approach to scaling back in response to market uncertainties emphasizes the importance of enhancing operational efficiency and leveraging data analysis for informed decision-making during volatile market conditions.
  • Utilizing Market Data for Informed Decisions (13:47): Discussion on leveraging resources like HUD and Zillow for data analysis highlights the significance of utilizing market data to navigate challenges and make strategic investment decisions.
  • Exclusive Focus on Florida’s Real Estate Market (18:52): Brock’s exclusive focus on Florida’s real estate market and his insights into promising investment potential compared to historical trends in other regions emphasize the importance of market research and strategic geographical focus.
  • Competing with National Builders and Building on Infill Lots (21:57): Challenges of competing with national builders and the necessity of building on infill lots due to funding limitations highlight the importance of strategic positioning and resource optimization in real estate development.
  • Advantages of New Construction Build-to-Rent Properties (29:03): Discussion on the investment strategy of using new construction build-to-rent properties for long-term value appreciation emphasizes the advantages such as lower maintenance costs, higher tenant quality, and increased property value, highlighting the potential of innovative investment strategies in the real estate market.
  • Maintaining Quality Standards in Construction (35:08): Emphasis on maintaining high-quality standards in construction, resisting pressure to compromise quality for quantity, and leveraging technology for online property viewing underscores the importance of prioritizing quality and embracing technological advancements in real estate development.

 

    

Relevant Episodes: (200+ Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.