Vendor Portal
Author: Mark Ainely | Partner GC Realty & Development & Co-Host Straight Up Chicago Investor Podcast
There’s a lot of noise out there about how hard it is to find self storage deals, but Fernando Angelucci has been quietly proving otherwise. In just four years, he scaled from $50M to $230M in assets under management, grew to 54 facilities across 24 states, and brought in 900+ investors.
In this episode of the Straight Up Chicago Investor Podcast, Fernando breaks down how he sources mom-and-pop self-storage deals, uses creative financing to outcompete, and leverages AI and phased construction to boost NOI and reduce risk. Whether you’re curious about diversifying beyond multifamily or looking for ways to operate leaner, this is a must-listen.
Questions We Answer in This Episode
Q: How can real estate investors find profitable self-storage deals in today’s high-interest-rate market?
A: By building long-term relationships with mom-and-pop owners at state association events, leading with value (helping with property taxes, management, or insurance), and presenting multiple creative offers instead of just cash.
Q: What’s the best way for landlords and investors to finance a self-storage facility?
A: Community banks are still a go-to for 65–75% leverage, but investors can also use SBA 7(a) and 504 loans for up to 90–95% leverage, especially when combined with seller financing or equity participation.
Q: How do you increase the value of a self-storage property after purchase?
A: Raise under-market rents, implement late fees and admin fees, cut bloated expenses, and add tech like AI-driven pricing software that can boost NOI by 16–30% with no additional staff.
Q: What are the advantages of buying self-storage vs. traditional rental properties?
A: Self-storage is less regulated than residential rentals, has lower maintenance, and can be scaled into large portfolios. Plus, mom-and-pop ownership still dominates the sector, creating big consolidation opportunities.
Q: How can investors avoid overpaying for a self-storage facility?
A: Always order a third-party feasibility study ($8–16k) before closing. These 150–250 page reports cover competitor occupancy, pricing, pipeline projects, and demand forecasts that lenders and serious investors rely on.
Q: What zoning or city approval challenges do investors face with self-storage conversions?
A: Municipalities often classify self-storage as industrial, pushing projects into the wrong areas. Investors need to position facilities as retail uses, show high-quality design, and sometimes add complementary businesses (like car washes) to win approvals.
Q: What’s the ideal entry point for a new investor in self-storage?
A: Smaller facilities in the $1M range (often 8k–16k sq. ft.) financed with SBA loans. Investors can get started with as little as $100k down, sometimes less with partners.
Q: What’s the long-term exit strategy for self-storage investors?
A: Bundle 10–15 improved facilities into a portfolio and sell to large REITs, or hold free and clear for long-term cash flow and wealth preservation.
Show Notes
00:00 – Fernando’s travels, dual citizenship, and starting in Brazil
01:16 – Growth since Episode 86: $230M AUM, 54 facilities, 900+ investors
02:14 – Deal mix: 25–30% new builds, 50% of dollars
03:31 – Marketing edge: SSA events, relationship-first outreach
05:43 – Playing the long game: some deals took four years to close
06:33 – Total market: ~72–73k facilities in the U.S.
08:16 – Lead acquisition costs: thousands per lead but millions in upside
08:59 – Three stages of underwriting + third-party feasibility studies
11:22 – Market share: REITs 20–24%, next 100 operators ~10%, mom-and-pops 65–70%
12:56 – Lean operations: outsourcing PM, shedding payroll, AI for underwriting
15:13 – Vendor redundancy and avoiding conflicts of interest
17:20 – Community banks, SBA 7(a)/504 financing, and seller participation
21:18 – Creative financing structures (silent seconds, seller-as-first, 50/50 splits, master lease options)
26:05 – Bonus depreciation strategies in creative deals
32:00 – Facility turnarounds: rent increases, expense trimming, AI-driven tech stack
36:00 – Average unit sizes by class (A/B/C) and deal examples (Kmart/Walmart conversions)
39:40 – Saturation is hyper-local; migration trends drive demand
42:00 – Rebuilding/replacing Class D facilities in freeze-thaw markets
43:25 – Navigating municipalities and rezoning strategies
46:23 – Atlanta case study: 3-year approval process, infrastructure costs, but massive moat
47:10 – Phased construction to balance investor cash flow and long-term equity
50:05 – Shifting company goals from scaling to wealth preservation
53:38 – How beginners can enter the self-storage space
55:05 – Competitive advantage: separate marketing, storage, and investor relations arms
56:23 – Podcasting and content strategy as a marketing engine
57:42 – Advice for new investors: “Just do your first deal”
58:46 – What Fernando does for fun (travel, languages, reading, video games)
59:08 – Book recommendation: Vagabonding by Rolf Potts
59:33 – Valuable Chicago resource: Cost Seg Kev
61:00 – How to connect with Fernando (website + phone number shared)
63:09 – Chicago fact trivia: U of I astronaut alumni
Takeaways for Chicago Property Managers and Landlords
Play the long game: Some of the best self-storage deals take years to ripen.
Use independent feasibility: Don’t trust your own rosy projections—pay for unbiased pipeline checks.
Outsource operations smartly: Convert fixed payroll into variable costs and maintain vendor redundancy.
Leverage AI: Pricing, rent increases, and unit placement upsells can drive NOI by 16–30% with zero extra staff.
Phase construction: Build in stages to reduce risk, appease banks, and balance investor cash flow.
Municipal approvals are a moat: Painful upfront, but a three-year rezoning slog keeps competitors out.
Creative financing wins deals: Cash + multiple seller-finance options gives sellers choice and you control.
Small facilities are still entry points: You don’t need $10M—first deals can be sub-$1M with SBA leverage.
Endgame matters: Start with leverage and investors, but long-term wealth preservation means owning free and clear.
Guest Name: Fernando Angelucci
Guest Company Website: https://ssse.com/
Fernando’s Phone Number: 630-408-8090
Because finding good tenants and property management shouldn’t feel like online dating.
Dear Investor,
If you are an investor in either the city or suburbs of Chicago, I would love to speak with you about how we can help you on your real estate journey. At GC Realty & Development LLC, we help hundreds of Chicagoland real estate owners and brokers each year manage their assets with both full service property management and tenant placement services.
We understand that every investor’s goals are unique, and we love learning about each client’s individual needs. If there is an opportunity to help you buy back your time by managing your rental property or finding quality tenants, please check us out.
Best Investing,
Founder, Partner, Podcast Co-Host, and Investor
