Why Smart Investors Are Betting BIG on Self Storage Right Now | Arthur Hood

Summary

Podcast Summary: The Entrepreneur DNA – “Why Smart Investors Are Betting BIG on Self Storage Right Now”

Host: Justin Colby
Guest: Arthur Hood
Date: March 16, 2026

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Episode Overview

This episode explores the current state and future of real estate investing with a focus on self storage as an asset class. Justin Colby sits down with Arthur Hood, an investor with deep roots in real estate, manufacturing, mining, and more. Hood discusses why self storage is increasingly attractive in today’s economic climate, shares his strategic approach to diversification, and offers expert perspectives on market trends, cash flow, asset management, and long-term wealth building.

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Key Discussion Points & Insights

Changing Real Estate Market Conditions

• Increased Importance of Precision:
  • “You have to have your numbers more accurate on the deals than you had to have in the past because you can't outrun mistakes with crazy appreciation in the current market.” (Arthur, 01:56)
  • Unlike the post-2020 era, investors can’t rely on high appreciation to cover errors or cost overruns; buying below market value and controlling costs is essential now.
• Longer Timelines & Uncertainty:
  • It now takes significantly longer to sell rehabbed properties, and exit prices are less predictable. (03:03)

Why Self Storage?

• Minimal Headaches, Strong Math:
  • “You don't have tenants, toilets and trauma or anything that goes along with it.” (Arthur, 04:48)
  • Evictions are simpler than in residential real estate: lock out, auction off, and re-rent quickly.
  • Large facilities offer stability; even after substantial tenant losses, occupancy can remain above 90%. (05:27)
• Growing Demand Drivers:
  • Lack of storage in new homes as builders reduce space.
  • Rise in hobbies and small online businesses increases storage needs.
  • Tenants stay for years; turnover is extremely low.
  • “Once people get in them, they don't seem to move. They stay five, six, seven years.” (Arthur, 06:32)
• Attractive Cash Flow:
  • Existing, value-add projects cash flow fast; new developments may take 3-4 years from build to full cash flow. (07:57-08:15)

Portfolio & Exit Strategy

• Current Projects:
  • 6 major self storage builds underway in Las Vegas, Phoenix, Tucson, Houston; 11 total in pipeline; aiming for $3–$7 billion valuation in coming years. (04:33, 24:11)
• Liquidity & REIT Exit:
  • Some assets are forced holds (zoning), others may be sold for liquidity; goal is to eventually exit into a REIT for tax-efficient liquidity for investors. (07:13, 09:26)
  • “At the end of the day, we'll probably exit into a REIT because it's a non-taxable event for our investors.” (Arthur, 07:13)
• Diversification Approach:
  • Maintains single family, multifamily, land entitlement, and selective commercial and industrial assets in parallel.
  • Owns or operates manufacturing, mining, oil and gas, bars, nightclubs for diversified cash flows. (17:01)

Investor Mindset & Advice

• Diversify Income Early:
  • “You have to go out there and have a business, a job, a sales job, a widget, a wage at yourself... So that you can build your real estate portfolio without depending on [it].” (Arthur, 18:38)
  • Early stage investors should not rely solely on real estate income; stable primary income is crucial.
• On Selling vs. Holding:
  • Sometimes you need to sell assets to fuel new investment; ideally long-term, holding outperforms. (10:12-10:19)
  • “If you never sell anything, you're probably better off.” (Arthur, 10:12)

Market & Regulatory Trends

• Interest Rate Predictions:
  • Expecting a new Fed chair could drop rates by half a point to a full point, possibly energizing residential but not returning to ultra-low rates. (12:01-12:37)
  • Skeptical of widespread homebuying resurgence, as consumer expectations are anchored at artificially low mortgage rates.
• Market Affordability & Builder Response:
  • Prices remain out of reach for average households—builders may have to pivot to lower-cost (tiny) homes or alternative models. (21:33)
• Institutional Ownership:
  • Hedge funds own a small share of homes, with mom and pop investors still dominating. (15:40)
• Political Smoke & Mirrors:
  • Justin comments on political posturing over housing, doubts about presidential influence over rates. (16:09)

Wealth Building Structures

• Entity Organization:
  • Hood uses a web of entities, trusts, and management companies for asset protection and tax optimization, but stresses you don’t have to do it alone—work with top advisors. (20:16, 20:37)
• Tax Strategy:
  • Accepts some tax liability in high-cash-flow years; uses depreciation and cost segregation where possible. (19:41)

Arthur’s Long-Term Vision

• Ambitious Growth:
  • Target to grow self storage to $3–$7 billion, exit into a REIT by ~2030. (24:11)
  • Diversify further into data centers and reduce focus on operating companies, shifting attention to real estate assets that generate passive income. (24:38-25:17)
• Operational Focus:
  • Emphasizes the challenge of moving away from active management even after delegating operations. (25:26)

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Memorable Quotes & Moments

• On the Shift in Real Estate Investing

  • “If you fog Demir and you were in real estate, you could win. …That is drastically changed in the last 18 months.” (Justin, 02:33–02:50)

• On Self Storage

  • “You can literally lock them out, auction the sht off, sweep the fcker out and re-rent it. You’re off to the races again.” (Arthur, 04:59)
  • “Nobody wants to sell their stuff.” (Justin & Arthur, 06:15)

• On Investor Liquidity and Exit

  • “If you never sell anything, you’re probably better off. …But with capital markets and different types of financing you have, that’s not always the way it works.” (Arthur, 10:12–10:19)

• On Home Ownership Realities

  • “I actually think homeownership’s not totally ideal. …Most people stretch to be able to afford the home, they’re doing it for the ideology of owning an asset.” (Justin, 13:16)
  • “If you have a million dollars equity. …use that capital to flip homes or make investments. That now becomes a tool. Just owning your home to say you’re owning a home…not a good plan.” (Arthur, 13:59–15:17)

• On Hedging Businesses and Real Estate

  • “As I built the cash flow from owning businesses, I started dumping it into real estate. …If all the businesses go to zero…I built enough real estate assets that it won’t matter.” (Arthur, 17:50–18:08)

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Timestamps for Important Segments

• [01:56] — Accurately underwriting deals in the new, slower market climate.
• [03:44] — Arthur’s preferred real estate asset types and early mention of self storage.
• [04:48] — Why self storage is fundamentally different and lower hassle than other real estate.
• [06:32] — Length of average tenant stays in storage and stickiness of customers.
• [07:13] — Discussion on exit strategies: REITs and tax advantages.
• [12:01] — Predictions on interest rate changes and market impacts.
• [13:16 – 15:17] — In-depth discussion about home ownership: equity use, renting, and investment strategies.
• [17:01] — Overview of Arthur Hood’s diverse business interests.
• [18:38] — The importance of having a primary income source while growing a real estate portfolio.
• [20:16] — Legal/entity structures for optimized asset management and taxes.
• [21:33] — Housing affordability and the future of homebuilding.
• [24:11] — Arthur’s big-picture goal to build a $3–7 billion storage empire.
• [25:26] — The ever-present challenges of being an operator and delegating business duties.
• [25:50] — How to connect with Arthur Hood and learn more about his ventures.

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How to Connect & Additional Resources

• Website: arthurhood.com
• Email (General): [e-mail]
• Email (Storage): [e-mail]
• Storage Company: yourspaceamerica.com

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This episode delivers an unvarnished look into real estate trends, the appeal of self storage as a resilient investment, and the mindset and structure behind long-term entrepreneurial wealth. Arthur Hood’s candid stories and actionable insights are invaluable for anyone navigating a shifting market, seeking diversification, or building a legacy through both business and smart asset management.

Transcript

[A]

The world of business is constantly evolving and Comcast business keeps you in step with secure AI backed networking in more than 100 countries, powering 90% of the Fortune 500 and millions of small businesses. And behind it all, thousands of experts answering your call at 2:00am like it's 2:00pm One partner.

[B]

That's it.

[A]

Powering how business gets done for companies around the globe. When you add it all up, no one does business like Comcast business.

[C]

What is up the entrepreneur DNA Family super excited about this podcast episode because my guest is a through and through investor. He is someone who has real estate, he has manufacturing, he has mining. I mean he invests as an investor would because he's smart, he takes his time, he understands finances. And if you're looking to invest in general, you want to listen to this guy. Arthur Hood is here.

[B]

Thank you.

[C]

How are you dude?

[B]

Pretty good. Good. Tired. Long day.

[C]

Oh man. Literally we're recording this at night and he flew in on his private jet from. You're in Pensacola, Florida.

[B]

Well, I started in Dallas this morning at a meeting in northwest Arkansas, very close to Walmart headquarters, Stevensville and then down to Pensacola for another meeting and then overnight in Miami.

[C]

So there you go to rock the podcast. So excited to talk about this. I think we're in a very strange phase of the economy and the financial world and we were just talking off camera about all this. I think there's some things that you see on the front line as a real true through, through and through investor. Right. You, you do a lot of real estate, but you have manufacturing as part of your investment and minds all these different things. So you're really analyzing the state of finances and money and cost of money. What are you seeing right now in the space?

[B]

Well, specifically in the real estate space, I'm seeing a time where you have to have your numbers more accurate on the deals than you had to have in the past because you can't outrun mistakes with crazy appreciation in the current market. And you can't have too expensive of capital back in that the heyday after, after 2020 you could have 18% credit cards and 14% hard money debt and still find 50% cost overrun and the appreciation property would, would fix the problem.

[C]

Yeah.

[B]

Now you've got to buy significantly below market control your cost and have a reasonable cost of capital.

[C]

Yeah, I mean we are joking. You know, in the last eight to 10 years if you fog Demir and you were in real estate, you could win. You could totally mess up the rehab and you're still going to be profitable in that space. That is drastically changed in the last 18 months, right?

[B]

Absolutely. And time on markets change where, you know, you only had to worry about the time it cost you to rehab it. Somebody was there to buy it.

[C]

Yeah.

[B]

Now it may take you six months or longer and you don't really know what the price is going to be.

[C]

Yeah.

[B]

You have an average idea, but you don't know the exact price you're going to exit.

[C]

Because we haven't had enough Runway at this cycle to understand that there's not enough economics of what is the real exit price going to be on these assets.

[B]

Not at all.

[C]

So you just kind of get close enough and hope and sometimes you're not that close. I mean I, everyone knows my story in the, in the beating in 2024 I took in the large part is because some of it is the Runway was still at a point where I could say, okay, we're going to exit here. And it stopped. It came to a screeching halt. Right, right. And so when exiting, the numbers didn't add up, it didn't mass out. What assets are you looking at in the keeping in real estate at least? What assets are you looking at as good investments?

[B]

I'm still going to keep buying selectively and rehabbing single family homes, growing that portfolio. I'll always have some multifamily. I still do quite a bit of land entitlement. I'll buy larger tracts of land and title and sell it to some of the track homebuilders. But they're not buying as much now obviously because their market has slowed down. But I think one of the sections that I'm most excited about, I've been pretty heavy in the last three years has been the self storage space which is all climate controlled. What we would call Gen 5 new controlled, nice looking facilities. Currently I'm building three in Las Vegas, one in Phoenix, one in Tucson and one in Houston and we've got about 11 on the pipeline right now.

[C]

So you're just dipping your toe in it. You're just, you're just kind of creepy. Like that's, that's a lot. Right. These are typically multimillion dollar investments like

[B]

give us give well over 100 million in cost under construction, probably worth 200 million at completion. And we're probably trying to grow that portfolio over the next five to seven years into several billion dollars.

[C]

So why self storage?

[B]

I like self storage because you don't have tenants, toilets and trauma or anything that goes along with it. You don't have crazy eviction laws depending on the state, you know, if somebody doesn't pay.

[C]

Yeah.

[B]

You can literally lock them out, auction the shut off, sweep the fucker out and re rent it. You're off to the races again. Also, in a, in a, in some of our buildings, you've got a thousand units. Takes a little while to fill them up. Or 1100 units. It takes, you know, some time to fill them up. But once it's full, if you lose a few units, mathematically it's nothing. Yeah. You use a lot of lun units before it affects hundreds before you fall below 90%. Yeah.

[C]

I mean it's literally if you have a 1200, you can lose 200 units and still be above 90%. Correct. Which is a lot of units. And everyone knows, I mean what I thought some of the answer was going to be. And maybe it is still. But people now are needing to rent more because they can't afford owning.

[B]

They are needing to rent more, they can't afford owning. And also, and because I sit on both sides of this one, as one of the companies I own, we do home building and you know, none of the, none of the spec homes we build have that much storage space anymore. Almost none of the home builders are putting a lot of storage space. So everybody's needing a place to store. Your new houses have very little storage.

[C]

Yeah.

[B]

And everybody now seems to have hobbies from skiing to water sports to whatever.

[C]

Yeah.

[B]

Climbing, bikes.

[C]

Stuff.

[B]

Stuff. Nobody wants to sell their stuff.

[C]

Yeah.

[B]

So they end up just needing a storage place to keep things. Yeah. Then we also have a lot of people that are running, you know, some type of Amazon business or something like that and they need a place to store material there. But everybody seems to have storage. Once people get in them, they don't seem to move. They, they stay five, six, seven years.

[C]

I've heard something like once you get a storage, there's some really long tail before they actually remember the exact.

[B]

But it's years.

[C]

It's years. And what a great tenant that is. Right. You don't even have the human component. But they're going to be there for years paying every single month.

[B]

Correct. And usually it's set up on a credit card or an AC8. So collection is pretty easy unless they change credit cards or change banks. And then, you know, most people. Oh, okay, here, I'll switch it out.

[C]

So you have 100 million in construction

[B]

that, that give or take, that's in construction cost. Cost value upon stabilization will be significantly more than that.

[C]

Is there an exit or are you going to hold it?

[B]

We're looking at a couple different exits. Some of the projects are not zoned so we're going to be forced to hold them for 10 years. Some of the projects are not. We may flip just to put some cash in the company but at the end of the day we'll probably exit into a REIT because it's a non taxable event for our investors. They get shares in a public reit. So if we get big enough and we get several billion in assets, we'll exit into a reit.

[C]

I think that's, I mean I'd love that problem. What is so cash flow wise? I had one storage facility, did really well and then we exited Relative the same to residential real estate. Better than resident. Like let's remove the human component but just cash flow.

[B]

If you buy something existing and do a value add, you can get to positive cash flow pretty quickly. If it's a development deal, you've got to get to the development cycle and then the lease up cycle and then the pushing the rates up from the rates in which you bring people into the rates in which you stabilized at. So that can take you 36 months.

[C]

Yeah.

[B]

Maybe a little bit longer, maybe four years. But once that's done and you refinance your construction debt with cheap permanent debt. Yeah, they cash flow quite well.

[C]

That's great. And so as a whole you're going to still stay diversified within the real estate space because after 20 years I really stuck in a single family. I'm now moving much heavier into apartments. And like them or not, Grant Cardone now finally I actually think he is right for me. Meaning one roof, one building. I just went through several hundred single family assets that you know my story. Like not ideal. Right. Not to deal with everyone independently. Right. Versus just one. Right. Yeah. So you're going to diversify. You're still do new home builds, you're still do storage. You'll fix and flip. You'll buy single family assets and continue adding that portfolio. You like the diversification?

[B]

I do. I like holding single family assets as me and just me and me as my family trust. I like holding some multifamily in a couple of my entities. And for me and then the storage is more of a, you know, build something massive.

[C]

Yeah.

[B]

And get out. I have a couple small storages that are just mine. But as far as building the, the your Space America company which I'm the second largest shareholder would be is to really grow that into a massive portfolio that we exit into a reit.

[C]

Are you going into any, like, true commercial buildings, strip malls, office spaces, anything like that?

[B]

Probably not office. I own my own office buildings and that's enough office for now. Yeah, I see what happens. You know, if a deal's a deal, I'll look at it, but I haven't really pursued office whatsoever. Yeah, I've had some industrial that I've sold off that I like.

[C]

But what makes an investor like you sell? Right. I mean, you know what you're doing. I mean, are you. You can make an argument you should just keep keeping it. Right.

[B]

Like I make an argument I never should have sold anything ever.

[C]

Okay.

[B]

But sometimes you just sell because you want some chunk of cash to go do something else.

[C]

Sure.

[B]

I think hindsight being 20 20, if you never sell anything, you're probably better off. Yeah, but with capital markets and different types of financing you have, that's not always the way it works. Yeah. If you have the right partnership in something and you got 10 partners in a deal on the LP side, not on the GP side, they all need a liquidity event. You may choose to go ahead and sell that asset versus refinance. It's have a true exit of that, that group and go do something else.

[C]

As, as an investor. When you bring on investors, you'll. You'll play fair to them as well. Right. It's not always just about Arthur. Like, like you just said, you had 10 LPs and they all wanted you. Like, all right, we'll sell and then hook you guys up and go to the next project.

[B]

Yeah, and we're, and we're pretty upfront with the investors, like the ones in the op zones. You understand this money's locked up for 10 years. You're in this 10, 11 years. And then in the other deals we like, you know, these are some trophy assets. We're going to keep them and they'll probably go into the, to a REIT structure. And then some of these were like, you know, these are going to be some that are going to generate liquidity for you and the company. As soon as they're leased up in three to five years, we'll sell them.

[C]

Yeah, yeah. There's. How do you see the next 36 months? I mean, no one has a crystal ball, so let's, you know, qualify it with that first. But where do you see it going? Right? Is there, is there going to be a better season to be selling here in the next three years? Do you think we're going to run for a while that you.

[B]

Well, it depends I mean, I don't have a crystal ball and I'm not going to gauge what politicians are going to do. However, my assumption is we get a new Fed chairman, rates are going to drop.

[C]

Okay.

[B]

I would say a half a point to a point at that thing. I think it'll light off the residential market again to some degree.

[C]

Yeah.

[B]

Although I'm still skeptical that it's going to create the buying frenzy, they think, because even though historically we still have a reasonably low rate, if you look at mortgage rates historically over the last 50 years. But people got very used to their 2% and 3% mortgages, which were unrealistic. But that's what Joe Q. Public thinks a mortgage should be. Should have a two or three in front of it, maybe a four.

[C]

Right.

[B]

And I don't think we're coming back to that.

[C]

I, you know, listen, that's the first time I think either one of us has seen something like that. I don't think we're going to sniff it. I think my gut and I, I'm definitely not the expert, but like, I think we get that maybe high fours, but I think we land in the low fives historically and we stay in that range for a while. I don't see it.

[B]

We stay in the, in the, in the high fours, low fives. It'll light off some of the market. Yeah. But there's a lot of home buyers in their late 20s to mid-30s. They got very used to and saw their first homes at 2.99 or three and a half. And they think that's a mortgage rate.

[C]

Yeah.

[B]

And it's not. It never was.

[C]

Well, this is where I'm actually being real estate as long as I have been. I actually think home ownership's not totally ideal. And in most people stretch to be able to afford the home, they're doing it for the ideology of owning your own asset. But if you and I both know like sprinkler systems and lighting and roof and just breaks.

[B]

Oh, yeah. I am a little bit of an older house. It's 4,400 square feet that I live in primarily. And you know, I've had to put in H VAC units. I've had to do stuff to the pool. Yeah, you name it, you know, so that, and I've never really amortized that cost, but I guarantee you it's a chunk of money at the end of the year.

[C]

Right. And so if they don't look at it as an investment in the way I would like. So, for example, if I have a Million dollars equity. I can take a home line of credit now. I can use that capital to flip homes or do whatever, make investments. That now becomes a tool. I like that idea. Just honing your home to say you're owning a home because most people buy a first time home. What is the average, what would you guess? 500 grand.

[B]

Now realistically, 475 to five and a quarter depending on the market. And I also don't think until someone is kind of settled in on knowing where they want to live, city at least, or state, buying a home just for them is silly. Now buying a home to live in, that you totally are okay with. Okay. I got a job across the country. I'm going to walk out the door, not going to sell it. I'll just rent it out. So that's okay. You've turned a primary residence into an income asset. And as long as you bought something that would actually rent for at least the mortgage payment or damn close.

[C]

Yeah.

[B]

And it doesn't hold you back from taking another opportunity somewhere else in the world. I don't have a problem with younger people buying a house. In fact, they should. It's a good way to grow some equity. But if you're buying the house only to live in that house and then because you have that house, you turn down other jobs and other opportunities and things before you're married, before you have kids, before you. That's not a good plan.

[C]

Yeah, well, and it'll be interesting to see when you say kick off like the buying criteria, like I just still don't think there's enough assets on market. I know Trump made this big thing about, you know, the hedge funds buying homes.

[B]

And in certain markets that really did create a problem. Hedge funds were coming and buying up everything they could, but that was just in a few markets.

[C]

And I do believe it's like the 2% of the total investor Investor owned properties like 2%, which means the other investor owns are the mom and pops like us. So. Yeah.

[B]

And, and, and you know, and what makes you an investor buyer? You know, I've got 200 and some odd single family doors, but I'm still on the mom and pop side. I don't have 2,000.

[C]

Right.

[B]

Single family.

[C]

That's right.

[B]

What's the limit? What is one of the guys in the administration? So maybe it should be 20, maybe it should be 200. Well, I'm over both.

[C]

Right. So what are they going to do? Make you set like all that? I think what I do believe Trump is, is brilliant at Kind of the, the smoking mirrors and making everyone look over here and then does something over here. And I, that my gut is that whole thing is that he's just saying, hey, let me go fight for the people. And then really he's going to go try to lower interest rates and then he comes out the good way, good guy, no matter what.

[B]

Who knows what's going to happen with that. Because President doesn't have total control over the Fed.

[C]

No.

[B]

So but we'll see what happens.

[C]

Well, and if the Fed goes to zero, mortgage rates don't necessarily have to change.

[B]

Nope.

[C]

It's a good inclination they will. Doesn't mean they have to. Right.

[B]

You own other in your T bill has more to do with finance rates than anything else on earth.

[C]

Yep. Yep. What about stock market? You do you dabble? Do you throw some money here and there.

[B]

But most of everything I own is hard assets. I own real estate. Yeah. I own a bunch of bars and nightclubs that produce cash flow. I own manufacturing businesses that produce an asset where I own pieces of. I'm in the mining business. I'm in some oil and gas. I'm in some saltwater disposal wells that are in the Permian Basin for the disposal of the salt water that the oil wells produce. So I'm kind of diversified from that standpoint.

[C]

Do they all spit out cash flow or is pretty much.

[B]

They all spit out cash flow. I mean, the operating companies, you know, some, some months are a lot better than others. Sure. But they all spit out cash flow.

[C]

Do you, I mean, you're, you're, you're really diversified. Like, there's not a lot of connective tissue between manufacturing and buying a single family home. Right.

[B]

Like two different businesses.

[C]

Yeah.

[B]

You know, and it, but it kind of worked well together because as I built the cash flow from owning businesses, I started dumping it into real estate.

[C]

Yeah.

[B]

Because one day I want to say, well, if all the businesses go to zero, I want to mess with them anymore. They get sold. I built enough real estate assets that it won't matter.

[C]

Yeah. I think that is the way most people should be looking at it. And again, I hate to take a page out of Grant Cardone, but I, I was pretty vehemently disagreeing with his premise from what he started. Give me a little bit of time in season. Now I'm starting to really realize, like, if you can just rent your home and take your income, your cash flow and buy assets that pay for themselves, it really is just a better model. That's why I don't Think most people

[B]

and I get crossed with some of the younger and smaller real estate investors. I think you have to go out there and have a business, a job, a sales job, a widget, a wage at yourself. You have to have something that's generating income so that you can build your real estate portfolio without depending on. So if you have four homes that are empty for six months or you have a triplex that needs a bunch of work, you're not scrambling to figure out how to pay for it. Yeah. You're not living your lifestyle. You're not paying for the groceries and everything else just from real estate income until that income becomes large enough that it can handle all of it. That's right. When you're first building the first 10 or 15 years, you need other sources of income coming in. I now I've never really had a job work for anybody else, but I've had businesses that pay me. You've got to have some things that are making you steady money every day.

[C]

Do all businesses you own. Is it. Is there always tax advantages or sometimes it's like massive cash cow and I'll have to now is why I want to go into real estate.

[B]

Cash cow. But I mean everything's under a series of holding companies that flow up to a parent. So there's some tax benefit to it. But yeah. Something makes enough money. Just deal with the tax.

[C]

Yeah.

[B]

Now you may have a year that you can cost sag enough bonus depreciation. There are things that can come into play that can reduce it but didn't. Are you still happy with the money?

[C]

Yeah.

[B]

Do you want a million dollars out of that business and pay a bunch of tax or do you want zero out of the business and pay zero.

[C]

So is your org chart slash how you set up all your entities and try is it overly complicated or have do you keep it pretty relatively simple,

[B]

but it's a little complicated.

[C]

Yeah.

[B]

There's a whole bunch of individual entities that flow up to some holding companies that then have some management entities.

[C]

Yeah.

[B]

And then flow into a trust. Not overly complicated. It's not simple but it's not open.

[C]

But there's people that can set this stuff up. Like no one needs to understand that in depth unless that's you're the lawyer

[B]

who sets there's some great this great firm I use out of Nashville, Tennessee that does it. They do it very, very well. They've done it for developers that I've got a couple really good tax advisors around the country. So we do it.

[C]

What do you think is Data.

[B]

But I do think, because I've got some friends that have gone 50 steps further and they pay far less in tax, almost to nothing.

[C]

Yeah.

[B]

However, they really have control of their money, and you start getting into.

[C]

Yeah, yeah, I listen. Also kind of a problem I wouldn't mind having totally. But where do you think the state of, like, new homes, builders, what do you think they're going to do? Because one of the things that you see a lot in the news is, you know, the housing market having no inventory. Okay, well, what are the builders going to be doing? Because if money doesn't stay cheap or get cheaper for them, what are their options? Well, they're going to build the product that no one's going to afford.

[B]

Yeah. They're going to build a product that no one's going to afford. We're going to have to come up with whether it's the. And I don't really like, personally, I'm not going to live in a tiny home. Right. But I think that that market is going to have to be brought out more as we're now at a point that the average job can't buy a house. I mean, when you're made, depending on the market, if you and your spouse both make 50 grand a year or 60, and you're 100, 120, you can't afford that much house. Especially if you have a little credit card debt, a little student loan debt, and a car payment.

[C]

Yeah.

[B]

You're not buying a house.

[C]

No.

[B]

Not the traditional mortgage, at least.

[C]

Well, thing. And we're sitting here in Miami. I mean, talk about a city that everything is exorbitant. Now. I think there's some markets, like in Miami, I think we're a little immune to the. To the. What's going on in this shift of the market. I can tell you the. The homes are flying off the shelves here in Miami, which is true, because

[B]

in the past downturns, especially after the L8, which very familiar with you, couldn't give away Miami. Yeah.

[C]

And that was the time to go.

[B]

I mean, we were so free.

[C]

Yeah. And now, like, you can't buy them for 600 grand. Right. I mean, it's insane. And partly is because you have so many people now moving to markets like this. And we're not the only market, but there's only a handful that really have been like, we're pretty steadfast. I mean, you're literally seeing New York come down here by the droves. You're seeing people from California because of the billionaire tax. And one of the founders of Google, I forget which one just went and bought almost $200 million. Of two homes, one was like 179 million, the others was like 30 million. Because he just had to get out of California. Right. I mean it's, this is a unique market in, you know and it's funny

[B]

because I own a manufacturer, I own part of a manufacturing facility in California and I'm in California quite a bit. And you know it's one of the greatest, most robust economies on earth. You chop it off, it is its own country. But it's got a bunch of problems now.

[C]

It sure does.

[B]

Quickly.

[C]

Yeah, I'm from there. I won't go back. That's just kind of my own side of it. It has been beautiful my entire childhood. Growing up I could, I thought it was the best place on earth. And now I go back to San Francisco and I'm like this is not where I want to be.

[B]

No, it's a great weather and you know you can make a lot of money there but you know a lot of the money there is going to leave and go somewhere else.

[C]

What's your ass, what's your big agenda here? Let's say it's 2026 as we're recording this. Say finish out the 2000s from 2026 to 2030. What is, what is Arthur Hood want to be doing?

[B]

I want to grow the storage company to 3 to 7 billion. Pretty big range there. But it depends on whether we and do all ground ups. If we do an all round ups we're going to hit that 3 to 4 billion range. If we start doing some value adds and acquiring stuff that's already there we could get well beyond that. Want to grow that and by say 2030 it would be nice to see that into a rate somewhere in that time frame.

[C]

Yeah.

[B]

Probably a couple more years before it actually happened which probably start that process. Yeah, that's something I'd like to see. I like to see. I'm involved in some other real estate in different parts of the country. We're putting in some data centers like to grow that business a little bit. Although I'm just a quarter partner but you know I help finance that. Really what I'd like to see is have enough real estate assets that are continuing to grow that I can just kind of focus on that and not as much on the operating companies. Yeah. Because in the last 10 years they've taken a lot of time and still do.

[C]

Sure.

[B]

Yeah.

[C]

The, the hard decision I had to make is I wanted to get out of the operations. I'm just not the operator because exactly what you're saying. It takes a whole lot of time, a whole lot of work.

[B]

In the last couple years I put some good people into operations. I'm doing less and less. But you still, no matter what, if you have operating businesses, you're involved in them.

[C]

100.

[B]

Regardless of how many people you know. There's no call me in six months.

[C]

That's right.

[B]

Business.

[C]

Yeah. Yeah. All right. Where should everyone go find you asking more questions. Get involved in some of the. You have multiple storages right now. People can be involved in your world.

[B]

It's just to me which is Arthurhood.com and there's some. Some buttons on there or [e-mail] arthur

[C]

arthurhood.com and then if you're just inquiring

[B]

about the storage, there's [e-mail] There you go.

[C]

Make sure and check them out. Make sure to follow them. Go to the website Arthurhood.com storage facilities, a lot of other different projects and all that stuff.

[B]

Yeah, it is. And then our website for the storage is your space America.

[C]

For your space america.com I'll get you links to both. Perfect. Appreciate you being on Perfect. Yeah, that's Arthur Hood. I'm Justin Colby. This is the entrepreneur DNA. We will see you on the next episode.

[B]

If you like the show, please take a moment to rate review and subscribe. It really does help the show to grow. Thank you for listening.