{"id":1903,"date":"2022-03-15T14:17:44","date_gmt":"2022-03-15T14:17:44","guid":{"rendered":"http:\/\/listselfstorage.com\/us\/industry-insights\/?p=1903"},"modified":"2022-03-15T14:17:44","modified_gmt":"2022-03-15T14:17:44","slug":"purchasing-a-mismanaged-facility","status":"publish","type":"post","link":"https:\/\/listselfstorage.com\/us\/industry-insights\/purchasing-a-mismanaged-facility\/","title":{"rendered":"Purchasing a Mismanaged Facility"},"content":{"rendered":"


\nMany properties that potential buyers find \u201coff market\u201d tend to not have the historical cash flow a bank needs to approve a transaction. The reasons could stem from poor marketing, low occupancy, lack of management or, in some cases, failure to report income incurred.<\/p>\n

When using an SBA loan product to purchase a facility with poor historical financials, the new deal can be viewed as a \u201cstart-up\u201d, as the new buyer will be running the site differently. With realistic projections and a business plan that justifies changes in operations, the SBA will allow a deal to be approved based on the buyer\u2019s projections even with subpar historical data.<\/p>\n

One thing to keep in mind is that a bank using the SBA loan product will need to verify the seller\u2019s tax returns via the IRS 4506-T form. So, tax returns and tax transcripts still need to be provided in order to verify the seller\u2019s historical data.<\/p>\n

Nick Collins
\nCommercial Lender – Vice President
\nBank Five Nine
\n155 W. Wisconsin Avenue | Oconomowoc, WI 53066
\np: (262) 560-2016 c: (262) 468-6169 f: (262) 804-9926
\nnick.collins@bankfivenine.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Many properties that potential buyers find \u201coff market\u201d tend to not have the historical cash flow a bank needs to approve a transaction. The reasons could stem from poor marketing, low occupancy, lack of management or, in some cases, failure to report income incurred. When using an SBA loan product to purchase a facility with poor historical financials, the new deal can be viewed as a \u201cstart-up\u201d, as the new buyer will be running the site differently. With realistic projections and a business plan that justifies changes in operations, the…<\/p>\n","protected":false},"author":7,"featured_media":504,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[],"gutentor_comment":0,"_links":{"self":[{"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/posts\/1903"}],"collection":[{"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/comments?post=1903"}],"version-history":[{"count":1,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/posts\/1903\/revisions"}],"predecessor-version":[{"id":1904,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/posts\/1903\/revisions\/1904"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/media\/504"}],"wp:attachment":[{"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/media?parent=1903"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/categories?post=1903"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/tags?post=1903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}