Chacalón was born in one of the squatter settlements (Barriadas or Pueblos Jóvenes) of Lima, from a migrant family from Ayacucho, the poorest department of Peru. Lorenzo grew up in the urban hill of "San Cosme" in the district "La Victoria" under very poor conditions. His father "Lorenzo Huaypacusi Palacios", whom Palacios never became acquainted with, was a dancer. His mother "Olimpia Quispe" was a singer. He was raised by her mother and his stepfather "Silverio Escalante" since he was two years old. He had fourteen half-brothers and sisters.