Table of Contents - An Insight Into 4th Generation Self Storage Facilities with Matthew Frederick
Dave Debeau [00:00:09] Hey there, everyone, this is Dave Debeau with another episode of the Property Profits Real Estate podcast. Today is an old friend is a guest of mine on the show today, Matthew Frederick. Matthew, how are you doing today?
Matthew Frederick [00:00:22] Dave I'm doing fantastic. Always great to see you.
Dave Debeau [00:00:25] Always great to see you. So what I'm trying to figure out how long we've known each other for. You are a contributing writer for my newsletter years and years and years ago. So I you know, I got a lot more of these great things on my head than you do on here. But I think it's at least 10 years we've known each other.
Matthew Frederick [00:00:41] Yeah. You know what? It has to be 10 years. And I'm actually beginning to see a little grace popping out. So it's happening ages.
Dave Debeau [00:00:50] So if you haven't had the pleasure of meeting or hearing Matthew speak, he's a very, very astute real estate entrepreneur based out of Ontario. Are you in Burlington? Is that right? Where are you calling it from?
Matthew Frederick [00:01:00] I'm actually in Lancaster.
Dave Debeau [00:01:01] Lancaster? I don't know where Agusta is.
Matthew Frederick [00:01:04] I was attached to Hamilton.
Dave Debeau [00:01:06] OK, perfect. So and Castra Ontario, he's done a lot of different things with the real estate investing. You know, when I first got to know, Matthew, you were focusing more, I believe, on single family homes. Now you've started to move into bigger and better things and doing development deals and starting to do self-storage type, interesting self-storage type stuff. Plus, you've coached and trained lots and lots and lots of people. So, you know, without stealing your thunder. It's great to have you on the call, Matthew, until you tell us a little bit about how you got involved in real estate investing in the first place.
Matthew Frederick [00:01:41] Well, Dave, thank you for the kind of intro about my first I said 19 years old, but not as an investor. I'm an immigrant, a Kimmet seven, and I want to own a piece of Canada. So I saved up for four years and bought a house. Now, four years later, four and a half years later, I was a teacher at Post Secondary School. My brother was a police officer who came to me and said, you should start investing in real estate. I'm like, I'm not an investor, I'm a teacher. That's my thing, he says. I'm going to give you three reasons why. No. One, I'm the older brother. Number two, I'm a cop and I have a gun. And number three, you can make money with cash flow. You can make money with more pay down and appreciation. So I thought, No. Two, he's got a gun at my house. I'll get into investing. So I was pulled into it.
Dave Debeau [00:02:24] Yeah, literally the gun got gun. Put your head explode. Yeah. Better. Yeah. So you so you start off with your brother pressuring you to get involved. Hopefully he got quite involved and he's still actively doing it as is the case.
Matthew Frederick [00:02:37] Yeah he did. You know my brother's about fifty seven years old now and he's retired. So as a police officer for many years we started investing together. I mean he's some retired because now we're actually building a condo buildings down in Central America. But I mean, for me, I started with the residential and then I moved to commercial that I moved to development, raising money for my projects. And now I'm backing off a bit from building a four story condo, condo buildings, fifty condos. I'm going to want something easier, like self-storage, three story building.
Dave Debeau [00:03:11] Yeah, I'm just out of my curiosity because I live for a long time in Mexico and Central America. Where are you building your condos or.
Matthew Frederick [00:03:18] Yes, South Belize.
Dave Debeau [00:03:20] South Belize. Very, very
Matthew Frederick [00:03:21] nice. A little town called Plascencia.
Dave Debeau [00:03:24] I know. Placentia, beautiful area. Wonderful. So you've done a lot. You pretty much done the gamut when it comes to real estate investing. What is it that's turning your crank about the whole self-storage industry and the whole what do you call the fourth generation of self-storage? Tell us a little bit about that.
Matthew Frederick [00:03:41] OK, well, first generation, I think we all know it's the thing that we're building with the garage doors. I mean, it's profitable. It's one of the first investments I got into outside of houses. I got into it mistakenly. I said I had to bring a coffee to a gentleman who owned a cell service facility because we stored our cottage things there. I didn't know I was the only person who spoke to him. And when he was dying, he offered me the business and I took it. And, you know, over all these years, it's been the most profitable type of real estate because there's no fridge, a stove, no washer dryer, no kids, no pets. I love cats. And I'm just saying, as a real estate investor, you have to consider yourself with with things like that. Now, the first generation is good fourth generation. Well, actually, let me take a step back. People see the third generation now. They're like larger buildings, three stories, small doors. That's, you know, warm storage facility. The fourth is what's
Dave Debeau [00:04:36] the second generation?
Matthew Frederick [00:04:37] Oh, so the second generation would be instead of the natural building. So I'm one acre. You can put five three thousand square foot surrounded by one hundred buildings, but you only covering about thirty five percent of the land because you have to drive them to that. Right. Next generation is pretty much now you have two larger buildings, but it's internal storage. So what storage. But there are flat buildings. One level so far generation would be two or three levels. Now fourth generation is combining something like we work. It's a shared office space, so you can rent offices, you can do coworking, you can have, you know, a cafeteria, you can have a place to have coffee, almost like it's like a Starbucks meets we works, share office space, meets boardroom's. And at the same time, you have a concierge who will accept Shipman's for you because as you know, the price per square foot of retail space pretty high in some areas and the Internet eating up lots of business. A three thousand square businessmen no longer need three thousand square feet, maybe a thousand square feet. And then you can store your products close by in a climate controlled, beautiful self-storage. Now, and this also has wine storage, has, you know, you walk in closet storage. So it has a lot of other things not just to stand. It'll put your, you know, your tools into storage,
Dave Debeau [00:06:01] but you can still do that as well.
Matthew Frederick [00:06:03] Exactly. You can do both.
Dave Debeau [00:06:05] And very cool. I've I've got some clients that do self storage, but I think they would be primarily focused on probably second generation self storage is first and second generation. So there's a whole fourth generation. Sounds very, very interesting.
Matthew Frederick [00:06:20] Well, second second generation, the first generation, they make money, but it's really hard to buy those. Nobody wants to sell them with land value going from, let's say, half a million dollars an acre to a million an acre or two million an acre. You really have to use more land. So you have to go with three levels up to eight hundred units as opposed to, let's say, one level at about 400 units.
Dave Debeau [00:06:41] Yeah, that makes a lot of sense for sure. So, you know, you've been investing since you are 19. So that's you know, that's been a little while. So knowing what you know now, if you were to start over again and please don't tell me I'd start earlier because 19 is pretty damn good. What, if anything, would you do differently?
Matthew Frederick [00:07:04] Well, probably two things. You know, I invested in residential till I was comfortable to go into commercial, that I invested in commercial till I was comfortable to go into development. But when I got into commercial, I realized it's much more it's almost like playing at the NBA level. And while I was doing my commercial, getting into it, I sell my residential super easy. And then when I started building four story buildings, I found commercial very easy. So I think people should if you're doing residential, you spent 80 percent of the time in it, but 20 percent of the time learning commercial before you need it. Because this way, you're now a grade 10 player who just spent a few months in the NBA and you're terrible there. When you come back, you're supercharged. So don't wait till you're comfortable and ready to go to the next level, even if it's not on your radar. You work on it now because again, in residential and commercial, you'll be a heck of a lot better at residential than you are today.
Dave Debeau [00:08:05] All right, very wise words. So, Matthew, you've got a lot of different skills and skill sets when it comes to real estate investing, Robert Kazuki talks about each one of us having our unfair advantage. What would you consider to be your unfair advantage or your real estate investing superpower?
Matthew Frederick [00:08:22] So I think my unfair advantage is the ability to spot potential not just in property, but also in people. And then from spotting that potential, how to approach them match my personality. So you have a good handshake, a mental handshake, and then from there listening carefully to understand what they need and then see how I can match it up to what I have. I generally saw the person's problem first not related to real estate. And then I earned the respect and had a conversation, a future conversation, and then I started the conversation. Couldn't be missed. It could be business. So again, the ability to spot a need, the ability to understand it, the ability to package it and solve it, build that relationship and then move forward from there.
Dave Debeau [00:09:06] Yeah, really kind of sounds like you're very good at fast forwarding. That whole relationship building process is true.
Matthew Frederick [00:09:14] And, you know, young people today playing video games don't really get a chance to build that relationship or communicate that way. So they're going to need some of those skills to survive in this new century that we're in.
Dave Debeau [00:09:27] Yeah, most often. So if somebody is saying, well, hey, that sounds like a good skill set to develop. How do you how do you help your coaching clients or help your students or other people to just kind of get better at doing that? What suggestions would you have for people?
Matthew Frederick [00:09:42] Well, a lot of people have a lot of interesting little stories in their lives, but they take it for granted. So first, you have to sit down and look at the simple things that have happened in your life and draw stories from it. When you can draw a story from those simple things, then you realize that other people have those simple things they take for granted and you can help them package what they take for granted and and move it towards the future.
Dave Debeau [00:10:09] So the person would be an example of that.
Matthew Frederick [00:10:11] So, for instance, when I was young, I was shy of public speaking and I thought, you know, I avoided a lot of sessions. I avoided as much as I could until grade 12 grade, till I finally had to read a book cover to cover. And I had to present. And I thought for a moment I knew that what the author wanted, the class didn't out of the class sat there. And instead of thinking about me, me, me, me, me, me, how do I look and feel? I cared more for them and caring more for them. I didn't have time to be, let's say, afraid of shy, nervous, and my true personality came out. So really being shy is also being selfish because you're so afraid to allow yourself out that nobody gets to know you. And again, that's a little story that's in my past that I can connect with other people who have the exact same story. And in a day I went from being shy to not being with to being quiet and unknown to being one of the most popular people in school. And again, I have probably one of those little small stories and we all do within us. We just have to bring them out and see how we can use them to connect with people first, and then you can move the relationship further on.
Dave Debeau [00:11:23] But also, one thing that stuck out with your suggestion there was, you know, you look you look at how to serve the other person first, how to help solve a problem that they might be having. What would be what comes to your mind as an example of you having done that?
Matthew Frederick [00:11:39] OK, so if I go to the events, like you say, go to the investor type of event, everyone's standing at the tables for me. I'll probably stand by the water or the coffee because everybody needs water or coffee. And if I'm there, I might say to somebody, you know, why are you here to me? What do you look at the. And they might say, well, I can't solve I can set goals. Some I say to them, OK, you know, I have the same problem to you. Mind if I share with you for a minute? And I might say, you know, when I was seven, I left Trinidad Tobago, left the Caribbean house in front of me was massive. But you know what, 17? I went back. So 10 years later, house in front of me was puny. So what happened there? Well, obviously, when I left, my world was three blocks wide. So that was a big house when it came back and was three thousand blocks wide. So I'd seen big. And I think people have the same problem of setting goals. How does a seven year old you are today set the goal for the 17 year old you are or, you know, 10 years from now? So really to set goals, what you would do is you would sit down and spend time with people who are doing what you doing, what you want to do, and then have someone push it through what you want to do and you can set a proper nine year goal. So that's an example of just meeting somebody and then understanding what their problem is, setting goals. Give them a story about how I solve a problem and if that solves their need, they remember you. I'm out of the thousand people they've seen because I gave them something, give them what they came for, how to set goals. And then perhaps I might have a conversation over coffee because I've earned it to that conversation may go on to other things. Sort of makes sense.
Dave Debeau [00:13:11] That makes a lot of sense. That makes a lot of sense. So, Matthew, you know, you've been coaching and working with people for a long time, and there's lots of different real estate coaches and consultants out there. What do you think is the biggest problem that you help people solve when they work with you?
Matthew Frederick [00:13:26] Yeah, so a lot of people don't really know who they are. They know who they want to be. And it's a connection of finding out who are you really and who you want to be and how do you bridge the gap and how do you use whether real estate or business or wellness. And by the way, you know, three, how do you bridge the gap with all three of those? Because a lot of folks define themselves in a sense by saying, I want to make ten thousand a month or I want to make fifty thousand a month. But I mean, really, why? What's the main thing that concerns you? Well, you know what? My wife works next job. How many hours a week? So many hours. What does you make? Three thousand times thirty six thousand. So really, your solution is not ten thousand. The first solution is to replace three thousand dollars. So your wife has the option to work or not work that will reduce your stress. Now let's move on to the next thing. So it's really helping people to understand what they really need and how to eliminate A, B and C, which takes care of, you know. Exactly.
Dave Debeau [00:14:31] Yeah, OK, very, very cool. So here's a wrap it up here for the last couple of minutes. Do you have any free or complimentary resources that you can offer people so they can find out a little bit more about you?
Matthew Frederick [00:14:44] Yes, if they go to my website, it's called Naidus Hub and I'd use it to be dotcom as a resource center. This would free lessons that they can pick up and learn just things to help them move along the path. And it's there for them. It's stuff that's taking me twenty eight years to learn. I can say it in a minute. Didn't take a minute to learn it though. I take that and work with it. Then you know what it's worth visiting the site and then moving forward in life.
Dave Debeau [00:15:11] So you've been doing this business for a long time. What would you suggest as one major actionable thing somebody can do to get unstuck or get going with the real estate investing or take it to the next level?
Matthew Frederick [00:15:26] Well, I think I think you mentioned that the word action see, a lot of people go to a lot of courses that read a lot of books. But if you read I got twenty books in a year and I ask you, what did you get from the book? And you say to me, well, I just got good stuff for me. I'd rather read one book in January, spend February working on seven things that I got from the book, and then in March making those behavior. All of a sudden I have seven behaviors that I'm living a read two more books that year, have twenty one behaviors that I'm living. That's what makes you successful. So a lot of people out there, you know, they can quote Warren Buffett, but I call that Buffett profits. I mean you can quote one hundred Warren Buffett quotes, but are you living any of them from actually living it? Not much, but action. So it's important, I believe.
Dave Debeau [00:16:18] I think you're very, very right. Well, Matthew, very good having you on the podcast, my friend. Thank you very much for being a guest. Any last words?
Matthew Frederick [00:16:27] Yeah. Bottom line is success is wellness. It's business and it's real estate. So learn your estate investing, but you have to be able to understand how to run a business. Easy to separate a few from their money. You don't want to do that, and at the same time, too, if you're not, well, I have a friend who is 50 for a lot of real estate, always busy, but his life isn't there. So you have to balance all three of them. And I think if you do that, you'll really enjoy success. Lastly, make memories. If you don't make memories, the years passed too quickly.
Dave Debeau [00:17:00] Good, good word, sage words of advice, my friend. Thank you very much, everybody. Thanks for joining in this week and we'll see you next week on the next episode. Take care. Thanks a lot, Matthew.
Matthew Frederick [00:17:10] Fantastic.
Dave Debeau [00:17:11] Well, thanks very much for checking out the property profits podcast. You like what we're doing here. Please head on over to iTunes, subscribe read us and leave us to review it. Very, very much appreciated. And if you're looking to create a regular flow of inbound investor inquiries about your real estate deals, then I invite you to attend one of my upcoming live online demonstrations. And you can check that out at Investor Attraction Demo Dotcom Ticker.