In this episode, I sit down with Alex Pardo, a self-storage magnate who transitioned from a thriving wholesaling and house-flipping career to building wealth through self-storage facilities. Alex shares his raw and honest story of realizing he’d built a stressful business that left him feeling stuck, and how he used Profit First principles to regain control of his finances and peace of mind — both in business and at home with his wife.
We unpack what it really takes to pivot into self-storage, why he believes it’s one of the most overlooked but recession-resistant assets available to investors, and how Profit First helped him save aggressively for big capital expenses. Alex also discusses who should consider investing in storage, what makes a deal profitable, and how adopting a disciplined money system strengthened his marriage and overall life satisfaction.
Timeline Summary:
[0:00] – Welcoming Alex and swapping Monopoly stories that reveal his competitive edge.
[1:59] – Alex’s first exposure to Profit First through Mike Michalowicz’s books and why it felt like a lightbulb moment.
[5:00] – How implementing Profit First let Alex save for a $100K+ CapEx budget, giving him confidence to move forward with major facility improvements.
[8:00] – How Alex and his wife adopted Profit First at home with dedicated accounts for vacations, Christmas, and giving — creating harmony in their marriage.
[12:52] – What led Alex to ask himself the crucial question that sparked his exit from the wholesaling rat race.
[14:35] – Why he calls scaling his wholesaling business “irresponsible growth” and how his experience taught him to value peace over profit.
[16:02] – His initial fears about moving into self-storage, and the surprising ways his wholesaling skills carried over perfectly.
[18:18] – A look back at whether he regrets leaving wholesaling given the hot post-Covid market, and why he doesn’t.
[21:04] – The powerful “play the movie forward” exercise Alex uses to make big decisions with intention.
[23:06] – His success story of acquiring, stabilizing, and selling a 638-unit storage portfolio — and why he only needed 1-3 good deals per year to move the needle.
[25:23] – Why self-storage can be semi-passive after stabilization, and how Alex spends just 1-2 hours a week managing hundreds of units.
[27:04] – Breaking down the three phases of acquiring a storage facility: marketing and analysis, financing and due diligence, and maximizing operations.
[29:03] – Why self-storage is recession-resistant: the unique psychology of people downsizing but unwilling to part with their stuff.
[32:05] – The differences in operating expense ratios between storage (30-40%) and multifamily (45-55%) — and why this margin creates more breathing room.
Key Takeaways:
- Asking yourself tough questions — like whether you’d want to be doing the same thing a year from now — can change your entire trajectory.
- Profit First isn’t just for business; applying its principles at home can bring couples closer and build long-term stability.
- Your existing real estate skills may translate seamlessly into self-storage — don’t underestimate how much you already know.
- Location and demographics are critical; a rough market can mean higher break-ins and delinquencies, even in storage.
- Storage can provide high cash flow with lower management demands than single-family or multifamily rentals — making it ideal for those seeking freedom.
Links & Resources
- Learn more about self-storage investing and get free training from Alex at https://storagewins.com
- If you want to keep more of what you make with Profit First, visit https://simplecfo.com
36 mins