Retire on Rentals Podcast: From Dentistry to Self-Storage Development and Beyond with Wayde Elliott

Episode Overview:

In this inspiring episode of Retire on Rentals, host Nicholas Cook sits down with Wayde Elliott, the visionary behind STORE IT, to discuss his remarkable transition from a 20-year career in dentistry to becoming a self-storage developer. Wayde shares his journey, from a forced career pivot due to injury to building a thriving storage business, offering insights into development, operations, and the mindset needed to succeed in real estate. Packed with practical advice and lessons learned, this episode is perfect for aspiring investors looking to break into self-storage or optimize their real estate ventures.

Guest:

• Wayde Elliott, Founder and Visionary, STORE IT
  • Former dentist turned self-storage developer with over 15 years in the industry
  • Focuses on ground-up development and conversion projects to add value for investors

Key Topics Discussed:

1. From Dentistry to Self-Storage (Timestamp: 2:30)
   • Practiced dentistry for 20 years until a spinal injury forced a career change
   • Inspired by a patient’s lifestyle of freedom through self-storage ownership
   • Transitioned after learning from the patient, valuing time over trading hours for money
2. First Storage Deal: Diving into Development (Timestamp: 6:00)
   • Built first facility in St. Helens, Oregon, facing challenges like wetlands, highway access, and environmental issues
   • Benefited from bank financing based on appraised value, a luxury not available today
   • Learned through trial and error, emphasizing the importance of not knowing what you don’t know
3. Hitting a Home Run with the Second Deal (Timestamp: 10:15)
   • Sold first facility to fund a conversion project in Forest Grove, repurposing an old lumber yard
   • Easier project with existing infrastructure led to greater profits than 20 years of dentistry
   • Sparked accelerated growth and team-building for STORE IT
4. STORE IT’s Business Model (Timestamp: 13:00)
   • Focuses on adding value through ground-up development or converting warehouses/lumber yards
   • Avoids buying existing facilities due to limited value-add potential
   • Targets larger sites (e.g., 5 acres) for economies of scale, supporting on-site managers and property management
5. Due Diligence and Market Selection (Timestamp: 16:30)
   • Evolved from gut-based decisions to sophisticated feasibility studies, pro formas, and geotech analyses
   • Ensures profitability and investor confidence with a systematic playbook
   • Operates in Oregon, Washington, and California, open to new markets meeting strict criteria
6. Lessons from Dentistry Applied to Storage (Timestamp: 20:45)
   • Carried over core values like exceptional customer service and a fun, light culture
   • Emphasizes trust, team input, and accountability, fostering a collaborative environment
   • Treats work as play, blending passion with business to maintain engagement
7. Challenges in Self-Storage Development (Timestamp: 24:00)
   • Site selection: Only 1 in 30 sites meets value-add criteria
   • Navigating bureaucratic hurdles with cities, counties, and agencies (e.g., annexation disputes)
   • Access to capital reframed as a “resourcefulness problem,” not a resource issue
8. Operational Insights: Maintenance and Tenant Issues (Timestamp: 32:00)
   • Low maintenance needs: Concrete, steel, and garage doors minimize costs compared to multifamily
   • Monitors facilities with 50–75 cameras per site to prevent misuse (e.g., unauthorized living)
   • Abandoned units rarely yield treasures; legal processes handled by management companies to avoid selling possessions
9. Technology and AI in Self-Storage (Timestamp: 38:00)
   • Early adoption of AI for site research and 24/7 camera monitoring with remote speakers for security
   • Open to tech advancements but cautious, learning from industry conventions before investing
   • Core value of seeking opportunities drives exploration of efficient solutions
10. Advice for Aspiring Storage Investors (Timestamp: 42:30)
    • Recommends buying small, cash-flowing facilities (e.g., 100 units) or joining syndications to learn
    • Encourages attending self-storage conventions to network and gain insights
    • Highlights the collaborative nature of the industry, with operators open to sharing knowledge
11. Market Expansion and Focus (Timestamp: 46:00)
    • Stays hyper-focused on storage, including boat/RV storage, avoiding other asset classes after losses in ventures like cannabis
    • Competes in smaller markets with less REIT presence, leveraging local knowledge and sophistication
    • Differentiates through customer service and core values, avoiding practices like bait-and-switch pricing
12. Regulatory Comparison: Storage vs. Multifamily (Timestamp: 50:00)
    • Benefits from simpler regulations in storage; non-payment results in gate lockout vs. complex evictions
    • Discusses Portland’s inclusionary zoning, reducing multifamily permits by two-thirds due to unfeasible economics
    • Notes how regulations harm housing supply, benefiting existing owners but not the broader market

Memorable Quotes:

• “I was forced into it… What I believed to be a curse turned out to be a blessing.” – Wayde Elliott
• “We look for opportunities and solutions, not problems.” – Wayde Elliott
• “Capital isn’t your challenge. If it’s a good deal, people are gonna invest in it.” – Wayde Elliott
• “My work is my play, and my play is my work.” – Wayde Elliott

Fun Segment: Getting to Know Wayde (Timestamp: 55:00)

• Dinner Guest: Napoleon Hill, for his transformative book Think and Grow Rich, emphasizing visualization with emotion
• Live Anywhere for a Year: Croatia, for its lifestyle, climate, and beauty
• Whiskey or Wine: Wine, for its diversity and Willamette Valley tasting experiences, with whiskey a close second

Sponsor:

• Sleep Sound Property Management – Portland’s leading management company specializing in multifamily and residential real estate. Visit sleepsoundpm.com for acquisition, operation, and sales support.

Call to Action:

• Like and subscribe to Retire on Rentals for more strategies to build wealth through real estate.
• Stay focused, stay driven, and retire on rentals!

Connect with STORE IT:

• Explore Wayde’s self-storage ventures at [STORE IT’s website, if available, or contact for details].

Next Episode Preview:

• Join Nicholas next time for more insights on optimizing real estate investments and creating passive income.

Timestamped Highlights for Listeners:

• 8:00 – Challenges of the first storage development
• 14:00 – Why STORE IT focuses on value-add projects
• 26:00 – Navigating bureaucratic obstacles in development
• 40:00 – Role of technology and AI in self-storage
• 48:00 – Advantages of operating in smaller markets
...