A self storage loan may be a good fit for you and your business portfolio. What are some reasons that lenders are eager to fund purchases, refinances and even construction projects for self storage? We have even been successful getting cash out with a recent refinance.
A Self Storage Loan is a great bet right now.
• Self Storage facilities tend to be easy to maintain. Unlike homes and other businesses with more complex infrastructure, self storage facilities are designed for stuff and not people. There is limited water onsite. There may be a mix of temperature controlled units and those without. Even the electricity can be very minimal in these units, typically to prevent renters from doing projects onsite and spending too much time onsite. The most critical components of maintenance are typically security and lighting.
•People need storage during lifetime transitions. Most people need some sort of storage options at some point. Whether customers are downsizing, moving to retirement communities, taking over the belongings of a loved one or changing locations for any reason, changing jobs or moving in and out of university settings, self storage is an affordable short term solution. Therefore, every community needs storage options of a variety of sizes and types.
• People store for longer than they anticipate. Storage customers typically rent as a stopgap measure. However, they tend to underestimate how long they will require storage. In addition, storage is so easy and the prices can be quite competitive. As a result, short term solutions often become long term patterns. This is great for owners!
Self Storage Upgrades:
If you already own a storage business or are looking to purchase one, there are some key upgrades that add value to the company:
- Setting up automated security. Security is one of the key expenses and the most important amenity for most renters. Gate security and onsite cameras protect your investment and make your renters feel safer.
- Enabling features that facilitate timely payments: There are excellent platforms that remind customers by text and email of upcoming payments, utilize an app to make payments and help customers set up automatic payments. These features increase on-time payments and do not require staff intervention to track down regular on-time renters.
- Climate control. Depending on the marketplace, there may be a demand for a certain mix of climate control units. Upmarket storage may also include humidity control, even more secure locations and special units for vehicles.
Our GRP Capital team specializes in finding the right lender for each project. We save our clients time and money, as we research the best choices for their funding sources. Our experience allows our clients to find funding that is project-appropriate and will allow for sufficient cash flow. Whether you are looking to refinance or purchase, we would love to discuss your business plans with you. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.
- storage refi; self storage unit; cash out loans ,
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