Mini Self Storage Unit/Self Storage Facility Commercial Loans
SMALL BUSINESS CAPITAL specializes in obtaining permanent loans for mini self storage purchases or refinancing. It's easy to apply for financing mini self storage unit loans and we have numerous wholesale commercial lending relationships that can provide the financing that you need.
The Investment Angle
The actual costs of operating and managing the property is one of the main factors that are appealing to investors and lenders. Mini self storage operating costs can range from $1.50 to $2.00 per net leasable square foot. Other commercial real-estate properties could range from $2.50 to $3.50 per square foot. Apartments, office, warehouses, and retail shopping properties have to continually keep up the grounds, plumbing, electrical fixtures and a variety of other maintenance items, which usually require a substantial maintenance staff.
Lenders who finance self-storage units like the numbers. The real story in comparing these properties to other real estate investments is that the investor can realize much higher ROI or Return On Investment. Secondly, the investor’s initial investment is a third or half of other investments. The investor does not have to be concerned about additional cash requirements involving tenant improvements or ongoing major maintenance.
Success Rates
The statistics for these investments are encouraging. Lenders that specialize in the financing mini self storage properties take note that the number of these properties that went into the FDIC or RTC for sale due to foreclosure was quite less than other real-estate properties being foreclosed. Of the 8 percent in self-storage facility failures, a large number of properties were taken back because they were collateral for other projects.
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