Financing your Self-Storage Business
Unless you’re independently wealthy, one of the most important decisions you will make is securing financing for your facility. Historically, contacting your local community bank has proven to be the best source for financing a self-storage facility. If you have a good relationship with a local commercial bank, you might consider talking with them. With no history of performance, lenders are reluctant to finance new sites, therefore it is essential to provide them with a professional and extensive loan package, so offer a complimentary proforma or sample loan package that you can modify to fit your deal. BETCO offers an interactive CD that can assist you with this process. Contact us today for more information.
There are three types of self-storage financing that you should know about:
- Construction Loan – In order to get a loan to build your facility, you will need to put together a loan package tailored to your needs.
- Refinance Loan – Once your facility is 80% occupied or higher, you may be able to refinance your loan, which may allow you to get a better rate, or terms, and often times, allow you to pull cash from your equity to use for expansion or any other good reason.
- Acquisition Loan – If you’re interested in purchasing an exiting facility, or need money to acquire another piece of commercial property, this type of loan may be an option for you.
