Self Storage Loans
October 14th, 2008
Every self storage property is evaluated based on its location, size, occupancy, unit mix, age, gross rental income, as well as other factors. A typical self storage property is underwritten with a vacancy rate determined by its market and an operating expense ratio in the 30-45% range. A typical self storage loan is amortized over 25 year and in some cases the remaining economic life the property can justify a 30 year amortization.
Self Storage Loan Overview
- Loan Amount $500 – $25,0000
- 25 – 30 Year Amortization (based on age and strength of the property)
- Up to 80% LTV, typically around 75%
- 3,5,7,10 Year Fixed Rates
- Assumable at Lender Discretion
- Flexible Prepayment Options
- Recourse on non recourse options
- Minimal or No Replacement Reserves
- Low third parties costs