Commercial Self-Storage Lending
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Self-Storage Property- Self-storage property generates its income solely on the
month-to-month fees generated for the use of its storage facilities
for consumers.
Self-Storage may be used for standard household goods as well as
recreational vehicles or even commercial items such as semi-trucks.
Since self-storage properties earn their income based on
month-to-month lease income, they have a high rate of turnover and
thus
an analysis of the last two years cash flow is critical for
commercial financing options to be determined. One of the
difficulties with financing self-storage properties is determining
whether the self-storage units themselves are considered “real
property”, such as cemented cinder blocks and solid doors, or
“equipment”, such as pre-fabricated walls that are merely bolted
into the ground. This determination will make a significant
difference in the market-value of the property. |