If You’re Looking For Self Storage Loans, Find Your Best Available Options
Self storage loans have become more attainable to many more people in the past few years. According to statistics from the Self-Storage Association, 85% of all of all self-storage facilities owned in America are owned by individuals / companies that own three facilities or less. There are also over 60,000 self-storage facilities in the United States. This means the majority of the ones in America are not owned by huge conglomerates, REIT’s but by normal folks like you and I.
Self-storage facilities are some of the most desirable commercial properties that lenders wish to lend to. The default rate is one of the lowest among commercial properties. The rates available are also some of the lowest.
What Are The Best Type Of Self Storage Loans?
When it comes to self-storage funding what type is right for you? There IS no right type for everybody. It depends on what your motivation is. Are you looking for the least down payment for an acquisition? Are you looking for the least amount of costs for a refinance due to a note due? Is Return On Investment the most important factor? Do you care if you are required to have a depository relationship with the lender you do business with?
If you’re looking for self-storage financing, most of the time there is no one right answer. Sometimes people are just happy to GET a loan. Due to the near-collapse in 2008-2009 of the US economy, it totally changed the landscape of financing landscape of all institutional lenders. The amount of due diligence that institutional lenders must do now compared to then is significantly more (much of this due to Dodd-Frank) to not only make sure banks have performing loans but “profitable” loans. Bank regulators watch banks much more closely than they used to so that insure they have acceptable liquidity. You may ask “what does this have to do with ME?” A lot. First of all, the days of just walking into the bank that you might have been dealing with for years are over for many people. Second, because of all the extra due diligence being done, be prepared for your financing to take longer than it might have 5-10 years ago.