Private / Hard Money

Sometimes the only type of financing for self-storage facilities is hard money or private financing. The reasons for this are varied.  There may be no financials, poor financials, poor credit, taxes due, death, divorce, etc.  Many times with private financing, minimal financials may be required for approval, although more recently, full financials are requested.  Part of the attraction of private money financing is the speed with which the loans are usually and should be done. 

Types of Financing

  • Acquisition
  • Expansion
  • Refinance
  • Construction

Loan Amounts:    $250,000-$10,000,000

Terms: 1, 2, 3 Year

Interest Rate:   Interest Only / Fixed Rates are currently between 9.99% – 17.99%. Rates can be fixed or floating, although usually fixed.

Amortization: 15 Years / Interest Only

Loan To Value: 40 – 65%

Prepay Penalties: Some exit fees may apply, depending on lender

Fees:

Origination: 1.5 – 6.0 Points
Due Diligence Deposit / Retainer
Customary closing costs

Eligibility:

  • Owner occupied / investment properties
  • Reasonable financial statement or credible projections

Collateral: First lien on land, building, equipment and inventory. Additional outside collateral may be required.

To pre-qualify for financing, download the following forms and provide the following information:

  1. Loan Application  (pdf)  (Word) or Apply Online
  2. Personal Financial Statement  (pdf)  (Word)
  3. Resume  (pdf)  (Word)
  4. 2013 Year End Business Financials
  5. 2014 Year-To-Date Business Financials

This is a general guideline for documents normally needed depending on the type of financing being applied for.