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Ready to start making money? Want to sleep soundly again? How about planning that dream vacation, shopping just for fun, or even mapping out your retirement?

Take back control of your time and goals with my FREE Flipping EBook and Short Sale EBook. Your path to success starts here!

Ready to start making money? Want to sleep soundly again? How about planning that dream vacation, shopping just for fun, or even mapping out your retirement?

Take back control of your time and goals with my FREE Flipping EBook and Short Sale EBook. Your path to success starts here!

Welcome to “The Most Wonderful Real Estate Podcast Ever,” hosted by Dwan Bent-Twyford, America’s most sought-after real estate investor. With her unique blend of knowledge and charm, Dwan brings a fresh perspective to the real estate world. She coined her own term, “Dwan-der-ful,” merging her name with the word “wonderful,” representing her vision of putting people before profits. If that resonates with you, head over to Dwan-der-ful.com for a free ebook on flipping homes.

In this episode, Dwan welcomes Clint Harris, a general partner with Nomad Capital, who specializes in self-storage syndication. Clint hails from Carolina Beach, North Carolina, where he raises capital for his ventures, all while managing life with his wife and two boys.

Dwan’s Introduction and Toast

Dwan kicks off the episode by sharing a casual yet fun atmosphere, including a virtual toast to all her listeners. She invites Clint to share what he’s drinking, and they both raise a glass—hers a sparkling water with live enzymes, and Clint, something of his own. She encourages the audience to join in, relax, and tune out the stress of the world for the next little while.

Clint Harris on Climate-Controlled Storage Units

After the lighthearted start, Dwan dives into the topic of the day: storage units. Clint is no stranger to the world of real estate, specifically climate-controlled storage, which is a rising trend. What makes his work unique is his approach to repurposing large, vacant retail buildings. Clint’s company specializes in transforming old Kmart, grocery stores, and warehouses into climate-controlled storage units, which he points out can be done at half the cost and a fraction of the time compared to new construction.

Dwan, intrigued, shares her own experience with storage units, explaining how she recently acquired a small set of 30 storage units in Iowa as part of a building she bought. Though this is her first venture into the world of storage units, she’s eager to learn more and expand.

Clint’s Unique Approach to Storage Unit Investments

Clint’s strategy is focused on revitalizing old buildings in communities, many of which have lost their big box retail stores due to the rise of Amazon and Walmart. Instead of allowing these buildings to sit vacant, Clint and his team see an opportunity to repurpose them for storage, turning dead space into profit. He explains that while people no longer shop at these large buildings, they’re still familiar with the locations and are willing to pay to store their belongings in the same space.

How to Get Involved in Storage Syndication

For those interested in getting involved, Clint explains the syndication model. His company raises capital from investors, pooling funds to buy and convert these large properties. Investors can join by contributing anywhere from $50,000 to $250,000. The projects typically involve acquiring a building for around $2 million, putting in $2-3 million for renovations, and then refinancing once the storage units are operational. The goal is to double the investors’ money through a refinance, with no need to sell the property.

Clint’s team has completed numerous projects, from former Kmarts to textile mills, with over $150 million in assets under management. For those who want to join, Clint offers opportunities for both accredited and non-accredited investors, ensuring that even those new to the investment world can participate.

Accredited vs. Non-Accredited Investors

A common question for new investors is the difference between accredited and non-accredited investors. Clint takes the time to explain that the SEC (Securities and Exchange Commission) sets these definitions to protect people who may not be financially savvy from risky investments. Accredited investors must meet certain income or net worth thresholds, while non-accredited investors do not. Despite this, Clint’s company still welcomes non-accredited investors, offering them a chance to be part of large-scale commercial real estate deals.

Investing in real estate can be a powerful wealth-building tool, but for those new to the space or looking for different opportunities, syndication offers a unique pathway. Clint Harris, an expert in syndicated investments, recently shared key insights into how these ventures work, focusing particularly on the role of self-storage units in his investment strategy.

What is Real Estate Syndication?

At its core, real estate syndication allows individuals to pool their funds to invest in large-scale projects, such as commercial properties, that may otherwise be out of reach. Clint Harris emphasizes that syndication is an effective way to grow wealth, especially for those looking to diversify their investment portfolios. However, it’s important to have a pre-existing relationship with the syndicator, as regulatory rules limit general advertising of such opportunities.

Why Self-Storage is a Smart Investment

Unlike traditional real estate, self-storage units offer unique advantages. Harris focuses on converting old, underused buildings like vacant Kmarts into functional storage spaces. This approach reduces development costs by nearly half compared to building new units from the ground up. Self-storage is what he refers to as a “sticky asset class” — people tend to rent storage units longer than they anticipate, creating a stable and ongoing revenue stream.

This approach enables Harris and his investors to buy distressed properties at low prices, renovate them, and turn them into high-demand storage spaces. The key to success is purchasing assets at a low enough loan-to-value ratio that refinancing becomes an attractive option. Harris’ strategy ensures that investors get their initial capital back, along with tax-free profits from refinancing, within five years.

What to Expect as an Investor

If you’re considering investing in syndication, it’s crucial to understand that every deal is structured differently. In Harris’ model, investors can expect to start earning returns from day one, although cash flow is often delayed during the first year due to building renovations. Once the project reaches around 40% occupancy, typically in the second year, cash flow becomes consistent, and investors start seeing quarterly distributions.

For Harris, the goal is to double investors’ money within five years or less, tax-free. After this period, the property continues to generate returns for investors indefinitely, with ongoing quarterly distributions.

The Importance of Diversification

Harris stresses that relying solely on savings is a risky strategy in today’s economic climate. Due to inflation and poor fiscal policy, the value of money sitting in a bank account diminishes over time. He advocates for putting your money to work through syndication or similar investments, which offer better returns and long-term financial security.

The Transition from Traditional Real Estate to Syndication

Before focusing on syndication, Harris built his career in cardiology, a high-pressure and demanding job that eventually led him to seek a more passive income strategy. He started with single-family homes and small multifamily units, using the popular 1031 exchange to defer taxes as he reinvested into new properties. However, managing multiple properties proved labor-intensive, leading him to explore the more hands-off approach of self-storage investments.

Today, Harris manages $150 million in assets, much of which has been built on his innovative approach to converting unused spaces into storage units. His experience demonstrates that with the right strategy, real estate syndication can offer significant returns while minimizing risk.

Conclusion: Is Syndication Right for You?

Syndication isn’t for everyone, but for those looking to grow their wealth through real estate, it can be an effective vehicle. Harris emphasizes that his role isn’t to sell investors on any deal, but to educate them on the strategies his team employs. If it aligns with their goals, they can move forward; if not, he’ll help point them in the right direction.

This spirit of community and education is at the heart of Dwan Bent-Twyford’s mission at Dwanderful, where she offers resources to help others on their real estate journey. Along with her podcast and investment insights, Dwan provides a free book titled “Real Estate Lingo” to guide beginners through the often confusing world of real estate, as well as a paid book, “Five Pillars of Real Estate Investing,” which delves into strategies for success in the field. Both Clint and Dwan exemplify how sharing knowledge and building strong networks can lead to success, fulfillment, and the betterment of others.