New To Self-Storage Financing
I would like to know more about self-storage financing. I already know that there are environmental issues, this type of real estate.
What would the max occupancy need to obtain a loan?
The deal I am looking at right now, is a 66 unit, with 2 offices, out of state owner, who over 90% occupancy at one time, but now it is 35% occupancy due to poor managment.
The owner willing to finance about 85% of the deal. I also need to find out of state management software, in which I can get info on the units thru the Internet. I heard about this on some course of self-storage investing.
Gross:2500/per month
Expenses: About $1800/per month
Net Income: $700/per month with management
How I can verify the numbers for this type of deal?
What is the downside to investing in this business?
I like the upside, but want to make sure that I could have enough cash to cover overhead, for refilling these units.
Lower expenses, and less mgmt headaches are what I love about self-storage facilities.
I always consider using Ebay distributors to help refill the units, and other ideas.
[ Edited by omicron3000 on Date 08/22/2008 ]
[ Edited by omicron3000 on Date 08/22/2008 ]
I am also looking to find self storage deals. I am using loopnet but I know there are other sources out there. Any thoughts on where else I could find sellers of these properties??
I have never encountered environmental issues, but of course I am in a rural area. My buildings are metal, so I would have someone familiar with erecting a metal building to come and check, especially the roof to make sure there are no leaks. Also the door springs can give a lot of trouble, so I would check these also.
The magazine I was referring to was Inside Self Storage.