The AAA Storage Podcast

AI is changing how businesses operate, and that uncertainty has some investors hesitating. In this episode of The AAA Storage Podcast, Paul Bennett looks at what AI can and can't replace in real estate. Paul explains how AI pricing agents have already changed self-storage operations, why office demand is tied to headcount while self-storage and small-bay demand is tied to physical need, and how a Samsung chip plant near Austin led AAA to make its Hutto, Texas project all small-bay. He closes with the questions he asks to find investments with optionality, and why he has always favored simple, bricks-and-mortar businesses he understands.Ready to talk about your investment strategy? Reach out at https://www.aaastorageinvestments.com/contactNew episodes every two weeks. Subscribe on Apple Podcasts, Spotify, or wherever you listen to podcasts, and send this to an investor in your network who needs to hear it.Follow and Connect with Us• LinkedIn: https://www.linkedin.com/company/aaa-storage-investments/• Instagram: https://www.instagram.com/aaastorageinvestments/• X: https://x.com/investments_aaa• Facebook: https://www.facebook.com/people/AAA-Storage-Investments-LLC/61575027573292/Download our free guides to take your investing to the next level:• CRE Investors Sector Reference Guide: https://www.aaastorageinvestments.com/info/cre-investors-reference-guide?utm_source=aaa-storage&utm_medium=show-notes&utm_campaign=ep-48-what-cant-ai-replace&utm_content=guide-cre-reference• Ground-Up Investor Field Guide:https://www.aaastorageinvestments.com/guides/ground-up-investor-field-guide?utm_source=aaa-storage&utm_medium=show-notes&utm_campaign=ep-48-what-cant-ai-replace&utm_content=guide-ground-up-field-guideChapters[00:00] Introduction[01:43] How AI Changed Self-Storage Pricing[05:31] Which Real Estate Is Exposed[07:49] Self-Storage and Small-Bay Meet a Physical Need[10:49] The Doorman Fallacy[12:06] How a Business Operates vs. Why It Operates[14:22] Life Events, Small Businesses, and Demand for Space[22:03] Where the Digital and Physical Economies Collide[27:20] Investing for Optionality[32:29] Buy Boring

Paul Shannon has been a general partner, a fund manager, and a limited partner in nearly 45 private real estate deals across 10 years. In this episode, Paul Bennett sits down with him to discuss his new book, Both Sides of the Table, a practical guide to passive investing built from all three perspectives. They cover the difference between thinking like an investor and thinking like a consumer, why the pro forma is rarely the outcome, how to read the market cycle, how to evaluate a sponsor's character and alignment, and how IRR partitioning and yield on cost can reveal when a value-add deal carries development-level risk. Paul Shannon closes with his core advice for LPs: lead with risk, not returns, and build a diversified portfolio over time.Get the book: Both Sides of the Table by Paul Shannon: https://www.amazon.com/Both-Sides-Table-Paul-Shannon/dp/B0H568RKLJ/Ready to talk about your investment strategy? Reach out at aaastorageinvestments.comNew episodes every two weeks. Subscribe on Apple Podcasts, Spotify, or wherever you listen to podcasts, and send this to an investor in your network who needs to hear it.Download our free guides to take your investing to the next level:• CRE Investors Sector Reference Guide: https://www.aaastorageinvestments.com/info/cre-investors-reference-guide?utm_source=aaa-storage&utm_medium=show-notes&utm_campaign=ep-47-both-sides-of-the-table&utm_content=guide-cre-reference• Ground-Up Investor Field Guide:https://www.aaastorageinvestments.com/guides/ground-up-investor-field-guide?utm_source=aaa-storage&utm_medium=show-notes&utm_campaign=ep-47-both-sides-of-the-table&utm_content=guide-ground-up-field-guideChapters[00:00] Introduction: Paul Bennett welcomes Paul Shannon, author of Both Sides of the Table.[01:49] Why This Book Is Different: Moving from the principles of passive investing to the practice.[03:23] Three Seats at the Table: What the LP, GP, and fund manager seats each taught Paul about risk.[07:31] Investor vs. Consumer: Urgency marketing, the joy of missing out, and the allocator mindset.[11:08] Second-Level Thinking: Real diversification, personal goals, and why passive investing isn't passive.[14:22] Getting the Market on Your Side: The market-cycle pendulum and being paid enough for the risk.[22:16] Character Over Track Record: The worst-deal question, LP empathy, and 50 questions for sponsors.[27:55] Skin in the Game: Why meaningful sponsor co-investment creates alignment.[31:02] Value-Add vs. Development: IRR partitioning, yield on cost, and development spread.[38:30] Lead With Risk, Not Returns: Paul's hopes for readers and how to build a diversified LP portfolio.

Disclaimer: This episode is provided for informational and educational purposes only. It is not investment, legal, tax, or accounting advice, and it is not an offer to sell or a solicitation to buy any security. Consult your own CPA, tax advisor, and legal counsel before making any decision about a retirement account or an investment. Past performance is not indicative of future results, and all investments carry risk, including the loss of principal.In this episode, Paul Bennett explains how self-directed IRAs and Solo 401(k)s actually work, why leveraged real estate inside a self-directed IRA can trigger Unrelated Business Income Tax, and the loophole that lets qualifying investors avoid that tax altogether, even on assets they’ve already invested.Ready to talk about your investment strategy? Reach out at https://www.aaastorageinvestments.com/contactNew episodes every two weeks. Subscribe on Apple Podcasts, Spotify, or wherever you listen to podcasts, and send this to an investor in your network who needs to hear it. Follow and Connect with Us• LinkedIn: https://www.linkedin.com/company/aaa-storage-investments/• Instagram: https://www.instagram.com/aaastorageinvestments/• X: https://x.com/investments_aaa• Facebook: https://www.facebook.com/people/AAA-Storage-Investments-LLC/61575027573292/Download our free guides to take your investing to the next level:10 Due Diligence Questions to Vet Any Real Estate Sponsor: https://www.aaastorageinvestments.com/info/10-due-diligence-questions-to-vet-any-real-estate-sponsorFirst-Time Real Estate Syndication Investor Checklist: https://www.aaastorageinvestments.com/info/first-time-real-estate-syndication-investor-checklistChapters[00:00] Introduction: why self-directed accounts matter for private real estate investors[01:51] What a self-directed IRA and Solo 401(k) actually are[06:40] How money moves between accounts and the mistake that triggers taxes[09:49] Why your custodian isn’t your investment advisor[14:12] The tax bill most investors don’t see coming: Unrelated Business Income Tax[16:46] The loophole: why a solo 401(k) changes the math[21:16] Who this strategy is for[26:27] Closing thoughts and what’s coming next episode

Eight months after breaking escrow, Paul Bennett gives a project-by-project update on Growth Fund 2 — AAA Storage's $40 million ground-up development fund across Texas and North Carolina. Paul walks through where each of the fund's six active projects stands, why the national self-storage development pipeline keeps shrinking, and why he thinks that sets up a seller's market later this decade. He also shares an early read on Growth Fund 1's performance and explains how AAA Storage manufactures value through development rather than relying on appreciation.Ready to talk about your investment strategy? Reach out at https://www.aaastorageinvestments.com/contactNew episodes every two weeks. Subscribe on Apple Podcasts, Spotify, or wherever you listen to podcasts, and send this to an investor in your network who needs to hear it. Follow and Connect with Us• LinkedIn: https://www.linkedin.com/company/aaa-storage-investments/• Instagram: https://www.instagram.com/aaastorageinvestments/• X: https://x.com/investments_aaa• Facebook: https://www.facebook.com/people/AAA-Storage-Investments-LLC/61575027573292/Download our free guides to take your investing to the next level:10 Due Diligence Questions to Vet Any Real Estate Sponsor: https://www.aaastorageinvestments.com/info/10-due-diligence-questions-to-vet-any-real-estate-sponsorFirst-Time Real Estate Syndication Investor Checklist: https://www.aaastorageinvestments.com/info/first-time-real-estate-syndication-investor-checklistChapters[00:00] Introduction[00:16] Growth Fund 2 overview: $40 million across seven storage and four small-bay projects[01:00] Why the self-storage development pipeline is shrinking[03:45] Eight months in[04:00] Huffmeister and Buda: the first two projects near initial lease-up[06:00] Elgin and Hutto: the fund's best financing yet, and a Samsung-driven pivot to small-bay[10:00] Six projects, eleven planned[12:00] Cap rates, cycles, and the return of institutional buyers[13:57] Growth Fund 1's track record, and why Fund 2 is still raising capital[16:00] How AAA Storage manufactures value and the target return for investors

In this episode, we break down the full life cycle of a self-storage investment, focusing on the crucial question every investor asks: how do you actually make money? We discuss how exit strategies are planned, what drives the timing of a sale, and why relationships and trust can make or break a deal. With real-world anecdotes and honest insights, Paul unpacks the mechanics behind finding buyers, managing the closing process, and ultimately distributing returns to investors. Tune in to discover what sets successful storage investments apart and gain a deeper understanding of the core principles that drive lasting results.Ready to talk about your investment strategy? Reach out at https://www.aaastorageinvestments.com/contactNew episodes every two weeks. Subscribe on Apple Podcasts, Spotify, or wherever you listen to podcasts, and send this to an investor in your network who needs to hear it. Chapters(00:00) The Importance of the Exit Decision(05:27) Finding and Selecting Buyers(09:00) Closing Process and Due Diligence(12:39) Investor Distributions and the Waterfall(18:46) Tax Considerations and K-1 Reporting(24:28) The Value of Exit Velocity(27:50) Fund Structure and Return BlendingFollow and Connect with Us• LinkedIn: https://www.linkedin.com/company/aaa-storage-investments/• Instagram: https://www.instagram.com/aaastorageinvestments/• X: https://x.com/investments_aaa• Facebook: https://www.facebook.com/people/AAA-Storage-Investments-LLC/61575027573292/Download our free guides to take your investing to the next level:10 Due Diligence Questions to Vet Any Real Estate Sponsor: https://www.aaastorageinvestments.com/info/10-due-diligence-questions-to-vet-any-real-estate-sponsorFirst-Time Real Estate Syndication Investor Checklist: https://www.aaastorageinvestments.com/info/first-time-real-estate-syndication-investor-checklist