Self-Storage: The Smart Alternative Advisors Are Turning To

Join us for a thoughtful conversation with Andy Jones, managing member of Jones Gregg Financial (www.jonesgregg.com), as we unpack how private real estate investments fit into a diversified portfolio.

Host Paul Bennett and Andy explore the advantages of focusing on the client’s entire balance sheet—not just their investment portfolio—and discuss the importance of character, transparency, and alignment in choosing real estate partners. You’ll discover practical insights into portfolio construction, due diligence, and the advisor-client relationship that go beyond the traditional financial playbook.

If you want to hear what sets successful real estate strategies apart, this episode delivers clear guidance and fresh perspective.

Chapters
(00:00) Real Estate as an Alternative Asset
(01:10) Jones Gregg Financial Background and Focus
(02:39) Defining Private Real Estate Investment
(04:16) Motivations for Including Private Real Estate
(06:22) Balance Sheet Approach to Client Wealth
(12:39) Evaluating Investments and Importance of Character
(23:33) Advice for Advisors Considering Alternatives
(27:06) How to Contact Jones Gregg Financial

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Creators and Guests

Host

Paul Bennett

Managing Director at AAA Storage

What is The AAA Storage Podcast?

Investing in self storage gives you the fundamentals and growth you need to grow your portfolio. But skip the opportunities from golf buddies and gurus—invest in a real track record. Started by John Muhich in 1993, AAA Storage has delivered 19% IRR across 90 deals, totaling $450M in exits. Listen to our expert insights on investing from the AAA Storage team. See more at aaastorageinvestments.com.

Welcome to the AAA storage podcast,
your integrated real estate and

development partner, exploring all
things, self storage investing to

bring you diversified success.

Let's dive in.

Brandon Giella: Hello and welcome back to
another episode of the AAA Storage podcast

I have with me as always, Paul Bennett.

Thank you for joining and we
have a special guest today and

Andy Jones, who is the managing
member of Jones Greg Financial.

So today we're gonna be talking about
real estate and how registered investment

advisors and financial professionals look
at that as an alternative asset vehicle

and how investors should be thinking about
real estate as part of their portfolio.

So, Andy, if you wouldn't mind, can
you please tell us a little bit about

yourself, your background, your areas
of focus, and tell us where Jones

Greg Financial fits into your mix.

Andy Jones: Sure.

I'm Andy Jones.

I'm managing member of
Jones Greg Financial.

most important job I have as father
of, of two young adults, but, but

here at Jones, Greg Financial, we,
we've been in business since 2007.

We have a, we're a boutique firm
that works primarily with first

generation business owners, 35 and
older, married with children in

what we call the accumulation phase.

And, and what we're doing
there is trying to diversify

their balance sheet away from.

Their personal real estate
and their businesses being the

majority of what their assets are.

So, what we really do is take money
away from business owners so they

actually have it when they need it.

Brandon Giella: I like that.

That's a great,

Paul Bennett: that's great Yeah, Andy,
and, you guys do a fantastic job.

I know your clients are, are thankful
for your expertise, every day.

Let's start out with, with sort
of a really basic question.

for, for folks that are listening in,
how do you define private real estate

investments, for, for your clients?

How do you help them understand what they
are and where they fit into the category?

There are a lot of people out there
that really are, you know, they, they

understand direct ownership of real
estate and they may be familiar with

real estate investment trust, but
don't really know much beyond that.

So just to kind of set the stage
for everybody, how do you define

private real estate investments?

Andy Jones: Yeah.

You know, that's a great question for us.

It is, it, it's really
simpler than you think it is.

Are you gonna be, owning part of
the dirt or part of the organization

that owns part of the dirt?

we want and believe that.

A lot of value in the real estate
space is when development is occurring,

building is being done, and value is
being added either with the dirt or in a

building that's coming outta the ground.

So, so we look at it that way, versus
the REIT scenario, or which is just

another investment vehicle that most
people aren't very knowledgeable

about and, and, and makes 'em nervous.

They don't understand that.

They understand dirt
'cause they all own a home.

A lot of 'em own their own business
buildings so they understand

how real estate function.

Paul Bennett: Yeah, super.

I'm gonna say this, I probably,
if we've got any RIAs out there

listening, I, I may step on somebody's
toes, but, in my experience.

So many of the registered investment
advisors or financial advisors

that are out there, seem to
me as if they invest for beta.

they really are more focused on not
losing money, and there's certainly

nothing wrong with not losing money.

But then they are, building a
diversified portfolio that can really

grow wealth and, and they overlook.

The real estate or the alternative
asset class and really stay in the

lane of ETFs and mutual funds and,
you know, publicly traded equities.

What got you interested in
private real estate and, and what

motivated you to begin to include
it in your client's portfolios?

I.

Andy Jones: Well, that's a big question.

the real motivator was I had
clients that were asking for, so

I had a client that came to me
and said, would I be willing to.

Do the due diligence on, on
different type of real estate

opportunities on their behalf.

And, with my background, which I had a
little bit of real estate back in the

day, and, and, and my family has been in
real estate for years and years and years,

I had a, a desire to go down that path.

And, what I've found is, is
that a lot of our clients really

enjoy the real estate side.

Now why do a lot of what.

What people would say are, my
competitors don't do it, frankly, is

because their construction of their,
entities doesn't allow them to do it.

The only things that they can do is, is
ETFs, mutual funds, and, and, and stocks,

bonds, et cetera, et cetera, et cetera.

Their compliance officers won't
let 'em go down that path.

So, and, and the big brokerage houses,
let's be honest, they're just, they're

trying to sell what they've got and,
and, and real estate is not that.

So, one of the, the
distinctions that we have is.

Is, is this large sleeve of real estate
that we do on behalf of our client.

Paul Bennett: Yeah.

I, I, I just think it's, I think it's
really positive and I think it's one

of the reasons, that Jones Greg has
been so successful is, is because

I think you take a broader view.

So I'm, I'm, and I'm so.

Certainly thankful for it because
it's how we formed our relationship.

I'm, I'm switch gears a little bit and
just talk about, portfolio construction.

A couple of questions around
that is how do you think about.

Allocation to, to alternative
assets in a particular real estate

within a client's portfolio.

And if there is a number, there may
not be a specific number, and I know

everybody's situation is different.

but, but how do you think about where
clients should be invested and how do

you build it, another portfolio, and if
there's a percentage allocation that you

typically shoot for or work towards over
time, talk about that for just a minute.

Andy Jones: Sure.

You know, part of the differential
for us, I think, is that we don't

look at anything as a portfolio.

We look at everything as a balance sheet.

And, so with that in mind, as we're
looking at a balance sheet, we look

at each item on that balance sheet
and what is the intent of the,

of the item on the balance sheet.

With business owners and they know this.

once we solve the cash flow issue,
in other words, you know, they have

enough cash flow to live the lifestyle
that they want, then we redirect other

assets for frankly, wealth creation.

And, and, and so we're driving hard
to, to make that balance sheet grow.

and real estate can be
a huge part of that.

But since we've already solved the cash
flow problem, we're not, we don't need

to concentrate on having liquidity.

we don't have those issues.

We've got plenty of liquidity so we can
tie up, cash and, and into longer term

thought processes like real estate.

you know, a three year, five year window,
for my clients is, is not an issue.

where for others, especially
those that are more nervous about

marketplace, they want to know that
they can get their money the next day.

And, and, and that's just not an issue.

for, for my client base and, and
those that we put in, into these type

of programs, if If that's an issue
for them, frankly, this is just not.

a fit

Paul Bennett: Yeah.

Brandon Giella: if you don't mind,
could you double click or emphasize

that point about the balance sheet?

Can you like clarify what you mean
by that or why that's Im important

to you and not looking at a portfolio

Andy Jones: I'm, sure, um, I guess
you have to do a compare and contrast.

So if you're working with one of
the big, money managers, their only

concern is what's on the statement
that they're sending their client.

And what that they can
provide to that client.

Stocks, bonds, mutual funds,
ETFs, et cetera, et cetera.

Private, even private, some
private placement, which

is not really in my world.

Private placement is they're rolling
it up into a big fund and, and, and

they're investing in that space,
but it's not private placement.

Same with private debt.

So only thing that they're really
dealing with is anything that they can

sell that's allowed by their compliance
officers, and it has to be on their

statement because if it's not in their
statement, they're not getting paid.

for us, we're involved with the
balance sheet and the balance sheet is

really what their total net worth is.

their business, their personally held
real estate, stocks, bonds, mutual

funds, and then, and then real estate.

So we're trying to make that
whole balance sheet grew up.

so, not just a part of
it, the whole thing.

Yeah.

And frankly, we're involved in a
lot of things that, that we don't

get paid on, but we don't care.

we're more concerned about if that
balance sheet grows, let's be honest.

We make plenty of money.

So, so that's driving revenue to pay
stockholders, for the big brokerage

houses, we don't have any of that.

So it's, it's all about the client,
all about building their wealth.

Building their wealth.

So it goes on to their kids and
their grandkids or their charitable

organizations that are important to them.

That is our conversation.

So it is, it's all balance sheet.

It's not statement and, and revenue.

Paul Bennett: Brandon, I'm so glad
you asked that question 'cause I

was thinking it, and, I, I, I'm.

That, that's super insightful
and super powerful to me.

Andy, what you just said, what I heard
you say is that you really look at the

entire client's net worth and help them
build their overall net worth where the

people who use the portfolio language.

Are really only looking at care
about and managing the assets that

they have under their control.

So it's your, your view is a much
broader, much more comprehensive

view, and I think that's powerful.

Andy Jones: Well, thank you.

our, our clients seem to have enjoyed
it and since we use, we are primarily

working with business owners,
they understand what we're talking

about, on balance sheet growth.

a lot of.

General public doesn't even know what
I'm talking about with the balance sheet.

so, it, it is, it is working
within a vocabulary and a structure

that they're worth, used to
on a day to day by day basis.

So, it's a natural fit,

Paul Bennett: Yeah.

Brandon Giella: That makes sense.

I, I love that perspective.

I just never heard anybody use that frame.

Work before, but I love it.

It makes total

Paul Bennett: Yeah.

Makes perfect sense.

Another question on the,
on the client side, Andy.

what type.

It within your practice, what
types of clients are really

good fits for real estate?

and, and, and what type of
client really should avoid it?

Any distinction there in your mind or,

Andy Jones: Well, you know, since our,
our, our client base is fairly narrow,

I haven't really had anyone that, that,
that this couldn't be a fit, you know?

And, and the reason being is back to my,
we've solved their cash flow problem.

So their direct deposit, their, their
mailbox money, their lifestyle is set.

So then they are thinking more of
building that wealth perpetuating

onto the next generation.

And, and they're all accredited investors
that are playing in this game, which means

they're making over 300, $300,000 a year.

They have a million dollars
of investible assets.

Since they are at that level.

it's just that it's the next step
in the evolution of, of, of, of

driving return and driving wealth.

So yeah, we have some, some grandmas
and, and we have, I hate to say it, a

few attorneys and doctors, and they may
not go down this path because they don't

have that balance sheet thought process.

and, and they're, they're much more.

I hate to say it, they're selling their
time, so they don't, they can't, they

don't understand compounding of value
over time like you have in a business.

but my business owners all day, every day.

Paul Bennett: that makes perfect sense,
that it really does make perfect sense.

when you're evaluating a
private real estate investment.

Like you did with AAA storage, what,
what's the first thing you look at?

What do you, what's the first thing your
eye goes to as you start the process

of determining whether something's
appropriate for your clients?

Andy Jones: so most of the things
that we deal with, referrals from

other real estate professionals.

and, and the reason I say that is to me,
real estate is a character conversation.

Paul Bennett: Hmm.

Andy Jones: because in nothing ever
real estate, there's always a problem.

So, it's just, it's a question of sooner
or later, when is it gonna come up?

And I mean, the problem that the, you get,
you know, there's a, a, something doesn't

get approved fast enough or what have
you, But character can drive the process

forward in a win-win thought process.

and recognizing that with that,
with the right character, it is

they're gonna do what's in the best
interest of the client and their

investors, even if it costs them some.

money So that's the first thing I
really look at is, is character.

And, and, and, yeah.

Yeah.

We do a lot of due diligence behind that.

You know, I to say it, we look
at the organizations, we look

at every individual within the
organization that has authority.

We look, we talk to the CPAs, we talk to
the attorneys, we talk to past clients,

we talk to all that kind of stuff.

But it is all built off of the character
of, and the reputation of the people

that are involved because, When things
are going well, everybody's happy.

You really see who people are
and what organizations are

about when there's a problem.

So, so that's where we start.

And which is why partnering with a
company like AAA Storage has been just

such a blessing because you guys have
done a fabulous job in communication.

Transparency, documentation creation
and, tax return documentation.

you know, it is, it's a pleasure
to work with your team, Paul.

So, so, so that's what we're looking for.

Paul Bennett: It really kind of, yeah.

Obviously I didn't know the answer to
that question when I asked it, but I was

smiling as you answered because you and
I met because Brandon Edge, the CEO of

flagship, which is a, a private REIT real
estate investment trust in the healthcare

space, is how you and I met each other.

It was a referral.

and Brandon, who I've worked with over
a number of years and know well, and

Brandon knows me well and Brandon's
actually an investor with us as well.

but he's the one that introduced
us, so that's an interesting

Andy Jones: And after this
podcast I'll probably be on his

saying the same kind of stuff.

So, 'cause they do this job
as well and we're real pleased

with their partnership, so,

um,

Paul Bennett: they do a fantastic job.

Andy Jones: awesome,

awesome organization to

Paul Bennett: Yeah, they really do.

let's talk for a minute about, alignment.

how important to you, is alignment
between the sponsors and your

investors that you recommend these
real estate opportunities to?

Andy Jones: that comes back to
the balance sheet conversation and

what we're trying to accomplish.

Because if we're just try, if
we're trying to generate and, and

drive wealth, that's the alignment.

with, with the.

Then, then it comes down
and, and my clients never see

stuff that I don't believe in.

So then it has to align with my
thought process and, and my thought

process is, is, you know, a demographic
flow, where are people going?

What do they use on a day-to-day basis?

What do I think is going
to have a, a test of time?

if that comes into and, and if
an opportunity comes, it's in

alignment with my thought process,
then my clients get to see it.

part of that also is that we usually
like them to see organizations

before opportunities are, are
created so that they can kind of

get a comfort level of who is, AAA
storage, who is flagship healthcare

properties, who is Beacon Development.

so that they can see for themselves
and be and say to me, Hey, this

is something I'd be interested in,
or, Hey, I'm not interested in it.

And okay, at the end of
the day, it's their money.

It's not.

but that's how, how we kind of do it is,
if they're going down that wealth creation

scenario, a lot of this is in alignment.

There are cer certain segments of the
real estate space we just don't play in.

I don't believe in it.

I'm not going down that path.

if my clients want to do it, I'm
happy to look at it and give 'em

an opinion, but, but, but we're not
gonna put in front of our client.

Thanks.

Paul Bennett: Yeah, you, you may have
already kind of covered this, but

are there any, we're sort of still
under the due diligence category.

Are there any red flags that you
particularly look for when you're

evaluating an opportunity, whether
it's one that you plan to take to

your clients, or whether it's a one
a deal, or an opportunity that a

client brought to you and ask you
to take a look at on their behalf?

Andy Jones: Well, if, if there's a red
flag for me, my clients never see it.

I honestly, and, and the first
red flag is, as you can see, I'm a

relatively direct person, so if you
won't answer me relatively directly

as in extremely, then you're out.

because, I don't have time to
waste and I'm sure not gonna chase.

So, and, and my clients aren't either.

And because they're gonna look
at me and I don't like 'em.

looking at me.

so, so that's, that's, that's
the You better be quick.

You better, you better have
your stuff taken care of.

you better be tight.

and I'm looking for that evasive answer.

Non authenticity.

take somebody else's money.

Paul Bennett: So it really, really
goes back to what you were talking

about a minute ago, which is
character and you care more about

the people you're dealing with.

Obviously it's gotta be the
right type of real estate.

It's gotta meet a thesis that you
think makes good investment sense,

but, but the first thing you
really care about as a people.

That, that's a good segue.

You've, you've been very kind in
your comments and we've covered

a little bit of this already.

and, and I think we've already,
people have by this point have

already figured out that we have
a relationship and you have been,

gracious enough to, recommend both
fund one and fund two to your clients.

And we have a number of Jones Gray
clients that are investors with us.

So a little self-serving on my part,
but talk for a minute, about what

it's been like for you as an advisor,
and you've already touched on some

of that, and also your investors.

to invest with AAA storage.

Obviously, fund one is still in
its investment period, so we've

not sent money back to anybody.

I'm not asking you to

talk about returns 'cause we haven't
gotten to that part of the process

yet, but just as an experience from
the, the initial conversations, the

sharing of information, the subscription
process, and then communication and

relationship beyond that, what's it
been like for you and your clients?

Andy Jones: Well, once we overcame the
relationship issue with you, Paul, and

found all these other things going on,

Brandon Giella: That's great.

Andy Jones: you know, seriously
though, your scenario is, is really.

Simple.

And so, and you lay it out
beautifully for anyone to understand.

So, so that's been hugely helpful.

Your portals are easy to
work with and what have you.

But an an issue that a lot of developers,
and, and this is something I can speak

to specifically for you, a lot of
developers don't realize the importance of

getting their tax documents done on top.

and, simple scenarios of
having 'em posted in March.

You don't know how important
that is in the relationship.

Paul Bennett: Yeah.

Andy Jones: because like there are
some people that like to file on time.

I don't know why, but they do.

And, and having that kind of stuff and
not have to chase it, it makes it easy.

So.

I live in a very simple world as
if no one is calling me about you,

then things are great and, and no
one's calling you, me about you.

Where I have other developers,
frankly, that I won't do business

with anymore because we just got
their K ones, in the last 30 days.

Paul Bennett: Yeah.

Andy Jones: So, so you make it easy.

Your communication is clear,
concise on time, your taxes,

your tax documentation is there.

And then the last thing I would say on
all of this is you haven't overreached.

And what I mean by that is there'll
be some people that will take on

more money than they should, and,
because they're gonna get paid on.

you know what your budget is,
you know what you're looking for.

That's what you take.

You don't overreach and expand.

and, and, and, and that's prudent because
the optics on that are super important.

Where others will, will try to take
every penny that they can because they.

Because they're getting paid, but it's
not in the best interest of the client.

So, all those things stacked
up and stacked up well.

Usually I don't go into someone's
second offering until I start

making money off the first.

but how you've handled Fund one and
the communication on it and everything

else behind it, transparency,
keeping me informed, led me to, be

comfortable going down fund two.

And, once you get that one off
and running, I fully anticipate

that we'll go down to fund three,

Paul Bennett: Yeah.

Well we're, we're super appreciative of
the partnership with you and Kobe, your

assistant and, and all of your clients.

We

Andy Jones: the brains
behind the operation.

Paul Bennett: She's great
to work with, by the

way.

I was smiling when you were going
through your comments because I

remember distinctly when we met
early on, you made it very clear

that, as long as I didn't make your
phone ring, we'd get along just fine.

So,

Brandon Giella: I love that criterion.

That's so great.

Andy Jones: So, you know, we all
wanna live a simpler, easier life.

Keep it that way for me, please.

Paul Bennett: Yeah, yeah.

Well, yeah, no, no doubt.

We're getting sort of towards
the end of our time here.

I've got one or two
more questions for you.

and the next one, you, you may not,
but I'm just curious, do you have

any advice that you would give?

Let, let's assume for a minute
that maybe a registered investment

advisor or financial advisor or two
will see this podcast along the way.

any advice for them from your perspective
as particularly as it relates to

alternative investments and the
decision you've made to, to include

them in your client's balance sheets?

Andy Jones: the first advice
I'd give is don't do it because

I don't want the competition.

you know, you know, so your clients
come to me because you're not doing it.

so, so the real advice would be, is don't.

Get caught in what 99% of the
people in our business do,

which is all the tried and true.

This is defensible.

it protects you and your position.

'cause I think that's the way the whole
financial services business is built.

It's not for the, best
interest of the client.

It's in the best interest
of the, of the organization.

so change your thought process.

and, and, and look and see how do
you add value to your clients, and in

alternatives, with the right partners,
emphasis on the right partners.

'cause there's alternative is almost a
catch all these days, but alternatives

and, and, with organizations like, like
AAA or alternatives with organizations

like Beacon or Flagship Healthcare
Properties and what have you.

Your clients can see it,
touch it and feel it.

They can drive by and see.

they're going to really appreciate that
you brought something different off

of the table because let's be honest,
we can all get the same at, at the big

wirehouses and the, and the big bangs.

it's a differentiating factor.

My business has exploded in doing this.

and and it's fun and it's different.

Because how much can
you talk about Nvidia?

Don't get me wrong.

We're all happy to have some right now.

Um, but, it, it's a different thought
process and it is, it, it's diff it's

not highly correlated to everything
else on that statement that you are

sending to your clients who live
in fear of, oh my, it's March, 2020

and the stock market went down 37%.

Paul Bennett: Yeah.

I, I was just gonna go there, which
is, and it, it ties back to your, your

viewpoint, which I think is fascinating
of thinking about the client's

balance sheet and not their portfolio.

It, it has a component in their
overall wealth that is not

correlated to the public markets.

And I think that's a key strategic
reason to include alternatives

and, and, obviously, you've done
that and, and done it very well.

Last question, and this is, one that,
you know, I think people at this point

in the podcast will be very interested
to hear the answer to, and that is how

can listeners, get in touch with you?

How can listeners learn
more about Jones Greg?

if they're, if I was looking for
a financial advisor, I would want

someone that thinks like you do.

And, and so how could people reach
out and get in touch with you website?

What's the best way for people
to connect with you, Andy?

Andy Jones: Sure.

our website is Jones greg,
J-O-N-E-S-G-R-E-G g.com

and our contact information is there.

what I would say to anyone is, if you
want to, we're all about a conversation.

Honestly, we haven't updated
our website in 10 years.

we're not driving clients and, and, we're
all pretty much referral at this stage.

So, but if you want to have a
conversation, call, talk to Kobe.

She handles my calendar.

I'm not allowed.

and we can have a conversation
because we're at the stage of, we'd

like to say with clients, well,
we're gonna date a little while.

you can ask me and I'm gonna ask you,
and we're looking for the right fit

for the right folks that we can help.

we're not for the masses.

I'm an acquired taste.

but, but that, that's the deal.

if, if you want to have a conversation,
we'll date for a little while.

I'm not in a hurry.

If you're in a hurry,
we're not the right fit.

so that, but that's what contact
information's on the website.

Paul Bennett: That's super.

Yep.

Well, great.

It has been a blast and I knew
it would be, 'cause we've had

a lot of fun working together.

But, so appreciate your time
today and your insights.

I think they've been super valuable.

as we wrap up, Brandon.

I'll direct people to our website,
which is aaa storage investments.com.

you can do everything there from,
sign up for one of our live webinars.

we do several webinars each month where
we overview growth fund two, and we're

gonna do some things coming up where
we talk about why invest in ground up

development, as part of your allocation
to alternatives instead of just looking

at deals where you're doing value add or.

core plus or core existing
real estate, investments.

But check out the website.

You can see our other podcasts there.

You can also drop me a line
and, and we can connect.

and if for some reason you've
forgotten, Andy's website address,

reach out to me and I'll make sure
that I sort of hedge you in the right

direction so you connect with him.

But Andy, thanks for being here today.

Really enjoyed

it.

It's been a lot of fun.

Andy Jones: Thanks, Paul.

Thanks.

Keep up the great work.