Charles

Value-Add Real Estate Investor┃ 2 Self Storage Facilities / 44k SF ┃ 2 Small Bay Industrial Properties / 38k SF ┃ 1 IOS Site ┃ 24 MF Units┃Basis is Forever

[Charles @ChuckBuc2]

About ~5 months ago I started cold calling self-storage owners in search of my first deal and today I put my first deal under contract (off-market from a cold call)!

It's a small deal in just outside of a top 10 MSA. Will share more upon closing, but here are the highlights:

[Charles @ChuckBuc2]

@sweatystartup Hell yeah

[Charles @ChuckBuc2]

@DDrolapas Are you saying direct to owner in general or when a sellers broker is involved and going around them?

Agreed less likely to occur on bigger sized deals, not true on deals sub $5M

[Charles @ChuckBuc2]

@robbiehendricks @andyantiles_ 100%.

[Charles @ChuckBuc2]

@MariettaCRE Really nice over 5 years

[Charles @ChuckBuc2]

Just signed a 5,000 SF / 5 year lease / $10 NNN with 5% annual increases / 1 month free on my Athens Small deal with a $71 PSF basis.

Tasty YOC

High 60s % leased and getting closer to stabilization!

[Charles @ChuckBuc2]

@MericaLandBaron Thank you sir!

[Charles @ChuckBuc2]

@mattjonesmcm Grow financial. Only in Tampa and SC. They weren’t at that rate recently.

And should say it was full recourse

[Charles @ChuckBuc2]

Today myself and a passive partner sold an 11k SF small bay deal for $1.65M / $150 PSF, 20 months after being all in for $750k

We generated a 5.9x EM / 213% IRR over 20 mos
🔑 to the win were
A great basis
Incredible debt terms
Beating UW rents
Selling at a strong cap

[Charles @ChuckBuc2]

@mattjonesmcm It was the best I’ve had
80% LTC (purchase + improvements)
5.34% rate
25 year am

Local credit union

[Charles @ChuckBuc2]

@Storage_Venture Thanks my man! My partner had it brought to him by a broker. He raises $ for deals and since it was so small he couldn’t justify legal fees / promote on a deal this size and called me.

[Charles @ChuckBuc2]

@bairdk 175k SF 😫😫.

Dear lord. And I was happy with my 27k SF deal I have tied up

[Charles @ChuckBuc2]

@JimKittridge I used to chill every day when I owned a ~4 deals and have been busy past 6 mos owning 8.

I feel like if I get too many more would have to hire and that’s not the dream.

Don’t think I’ll ever not do deals - just need to sell off and do fewer/larger/less mgmt intensive deals

[Charles @ChuckBuc2]

@sellercarry Beauty

[Charles @ChuckBuc2]

After a long delay in self storage, I’m under contract on #3.

~27k SF
Purchase: $65/SF
CAPEX: $7.50/SF
All in: $76/SF

Stabilized #s:

Income: $12/SF
OPEX: $3.50/SF
NOI: $8.50/SF

Stab YOC: 11.2%

Located 2 miles from major SEC school

Details to follow in June after closing

[Charles @ChuckBuc2]

@REDevManager Fair but he’s a course guru. Wouldn’t ever throw shade at a “peer” in Retwit I see that’s active

[Charles @ChuckBuc2]

I was first going to comment how everyone knows taxes get reassessed upon sale, but this is blatant lies. No where are taxes 10% annual of the purchase price. I feel confident in saying this completely fictional.

[Michael Elefante @melefante6]

Our Fort Lauderdale property:
$1.5M purchase.
$80K in renovations.
$0 in monthly cash flow.

Biggest failure of my career.
Also the best teacher.

Property taxes went from $8K to $13K per month.
One reassessment. Wiped out all cash flow.
$60K per year mistake.

Now we research every county's tax rules before we buy.

Expensive lessons stick.

[Charles @ChuckBuc2]

@REDevManager I’ve done deals in Florida and never heard of anything close to 10%, so no but id bet i’m right.

Even if it is, he’s still an idiot if you’re selling Airbnb courses and had no idea that taxes can be reassessed on sale given taxes are generally your biggest opex item on any deal

[Charles @ChuckBuc2]

Didn’t click on the guys profile before posing this but of course he’s selling a course.

[Charles @ChuckBuc2]

@ChrisRamsey60 Selling and buying a new deal is what unlocks a move that multiple my wealth.

Raising $ creates investors which creates more of a job (reporting, image, etc)

[Charles @ChuckBuc2]

@sellercarry @REDevManager In terms of storage I wouldn’t couldn’t that too tertiary. Easy to sell growth of Orlando being only that far out.