Financing a Self Storage Business
Securing financing for your facility is one of the most important decisions you’ll make. Contact your local community bank – historically, this is the best source for financing a self storage facility – or contact a local commercial bank that you have a good relationship with.
With no history of performance, lenders are reluctant to finance new sites, so it’s essential to provide them with a professional and extensive loan package. 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.
There are three types loans for financing a self storage business:
Construction Loan – This is a customized loan package to get a loan to build your facility.
Refinance Loan – Once a facility is 80% occupied or higher, loans may be refinanced. This may be available at a better rate or terms, and offer the ability to draw cash from equity for expansion or improvements.
Acquisition Loan – This loan may be an option if an existing facility is being purchase, or money is necessary to acquire another piece of commercial property.
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