Monday Nov 18, 2024
Bourbon Casks & Cashflow with Morgan Salsman
Introduction to Lqd Assets: Morgan Salsman, founder of Lqd Assets, joins us to explore her business and its unique focus on bourbon barrels and real estate. Based in Nashville, Tennessee, Lqd Assets has three main areas: a bourbon barrel investment fund, bourbon warehousing, and brand development.
Investing in Bourbon Barrels: Morgan explains how investing in bourbon barrels can be a lucrative venture, with parallels to real estate. From sourcing barrels to aging bourbon, Morgan shares how her team handles everything from barrel acquisition to brand partnerships.
How Bourbon Barrels Appreciate Over Time: Bourbon barrels, like property, can appreciate in value. Morgan walks us through the timeline of barrel aging, from initial filling to significant appreciation milestones, like the “Kentucky Straight Bourbon” label at the two-year mark.
The Real Estate Connection: Lqd Assets’ warehousing facilities for bourbon barrels are key to their business model and tie directly into Morgan’s background in civil engineering. She describes her journey from real estate to bourbon, highlighting how warehousing and land use play a central role in the business.
Production and Brand Partnerships: For brands unable to build their own facilities, Lqd Assets offers a solution by aging and storing barrels. Morgan explains the sourcing and blending process, where brands customize the barrel contents to suit their product needs, much like winemakers selecting grapes.
Returns and Financial Structure: Morgan provides insights into the financial side of bourbon barrel investment. Despite industry shifts, her company has seen impressive annual returns of 20-30%. She also discusses how the aging process impacts the barrels' value, akin to property appreciation.
Bourbon Warehousing Expansion: Lqd Assets recently expanded its warehousing, allowing them to store up to 160,000 barrels. Morgan talks about designing the warehouses, using her engineering expertise, and scaling their storage to meet market demand.
Key Takeaways:
- Unique Investment: Discover how bourbon barrels, like real estate, appreciate over time and provide a tangible asset-backed investment opportunity.
- Blending Real Estate with Bourbon: Morgan draws clear parallels between bourbon barrel investment and real estate, from warehousing to asset appreciation.
- Growing Demand: As the bourbon industry grows, so does the need for warehousing and aged barrels, positioning Lqd Assets for significant growth.
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