Category: Anatomy of a Deal

20 Finding Land Hacks I wish I had known Sooner – By Marc Goodin, Founder of Storage Authority

Storage Authority provides you with detailed information and guidance to both understand and implement these tips to find superior properties faster. As you look for land it is critical to understand the land mines so you can avoid them. Here are 10 traps: https://www.storageauthorityfranchise.com/post/10-real-estate-traps-for-self-storage-developers 1.Start looking for land today! Don’t wait until you are a land expert. This day may never come. 2 hours a day = 14 hours a week = 728 hours a year. This is the number one key to finding land. Storage Authority Franchise owners have…

Reduce Down Payments and Overcome Appraisal Shortfalls with SBA 504

With the Small Business Administration (SBA) 504 loan program, the property only needs to appraise at 90% of the total costs. This buffer can overcome regulatory loan-to-value restrictions for your financial institution. Consider this case study: A prospect wants to buy a $1,000,000 building. You propose lending 80%, or $800,000. However, the appraisal comes back at $900,000. Using the 80% LTV limit, your loan would be restricted to $720,000, requiring the prospect to bring an additional $80,000 in cash, potentially killing the deal. The SBA 504 program allows for a…

Comparing SBA Loan Programs

On a recent deal, I had a customer caught between a rock and hard place while choosing which financing route to pursue. While going through the different costs and various benefits of both the SBA 7a and SBA 504 programs, it was hard for the client to make a choice. Ultimately they went with the SBA 504 program due to the 25 year fixed rate on a portion of the debt. Here is a breakdown of both programs: Nick Collins Commercial Lender – Vice President Bank Five Nine 155 W.…

Expansion Loan with No Money Down from Bank Five Nine

Over the past several years, my bank has financed hundreds of self storage deals. Some of these projects were existing facilities while many others were ground-up construction. Demand for storage is soaring and many operators are in need of adding more units to their existing sites. On a recent deal, I had a current SBA 7a loan in place and we were able to fund the expansion of both Phase 2 and Phase 3 of the site plan with zero money injected into the deal. The SBA 7a loan program…

Construction of a New Self Storage Facility: SBA Loan Options

The SBA 504 loan product continues to be in very high demand.  With historically low 25-year fixed interest rates (2.81% in July) and low down payment options (10-15%), it has very quickly become our most popular loan product. As great as the 504 loan product is, it is limited to only financing fixed assets like real estate and equipment.  For a new construction project, eligible costs typically include items like land acquisition, construction improvements, contingency, soft costs, FF&E, interest carry and finance fees — essentially everything associated with designing and…

Acquisition Review – Longview TX

Recently, Marcus & Millichap completed the sale of a 55,956 square foot self storage facility in Longview, TX. Within just two weeks of marketing the listing, the team generated ten offers, more than half of which came in at or above the asking price. FreeUp Storage I-20 had 10 offers within two weeks The Facility The property is situated roughly 130 miles east of Dallas along the I-20 just south of the city of Longview, TX, about 60 miles east of Shreveport, LA. Positioned alongside the I-20, it sits on…