Posted by chet on January 28, 2005 at 04:17:48:
on the commercial lending website, I have seen that as a different asset class, with different rates, ltv, etc.
SBA come to mind if you’re going to own.
Best way to finance Self Storage facility? - Posted by Mike
Posted by Mike on January 28, 2005 at 02:33:18:
I am currently considering development of a self storage facility. At present I am figuring about a 2 million dollar loan for this project. Any advice from lenders regarding financing for a self storage development/construction project would be appreciated.
Thanks, Mike
Re: Best way to finance Self Storage facility? - Posted by John (OR)
Posted by John (OR) on January 30, 2005 at 06:59:56:
Mike,
You need a lender who will provide construction finance. Assume that
such loans are costly and difficult in that the lender needs to be
protected if you fail to finish the project. Stopping in the middle is very
costly to a lender.
Once the project is done then you need permanent financing.
All of the above needs to be backed up by a business plan. The lenders
will want to see someone having skin in the game (cash equity in the
project).
John
Re: Best way to finance Self Storage facility? - Posted by Chris
Posted by Chris on January 28, 2005 at 10:30:49:
I can finance it & build it-redoing my home-call at extended stay suites-214-357=8420x2033-thanks Chris
Re: Best way to finance Self Storage facility? - Posted by wes
Posted by wes on January 28, 2005 at 08:26:08:
According to the financial strength of you/borrowing entity and the amount of funding you need vs the cost/value, you might qualify for special financing that offers the lowest cost of funds you will likely find.
Currently as low as 2.5% amortized over 20 years.
email me if you need more details to decide if you might qualify.
Good Luck!