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Self Storage Loans & Financing
There are typically two major reasons why you are actively looking for a self storage loan. The first is that you are looking to acquire a self storage property and you need a loan / financing. The second is that you already own the self storage space and you are looking to either refinance the property with a commercial loan or you’re looking to use your self storage property as a bridge loan for finance another commercial property.
In most cases, CommLending has a solution for your self storage loan and financing needs.
Long term self storage loans are available through CommLending and our unique approach to financing these types of properties. We offer No Tax Return and No Personal Guarantee mortgages on self storage commercial properties. This unique financing opportunity allows the business owner to fully focus on the management of the self storage facility instead of jumping through hoops for conventional self storage banks and lenders chasing down documentation.
As with most of the commercial real estate loan products offered by CommLending, your loan program will likely land somewhere between traditional conventional loan programs (Fannie Mae and Freddie Mac) and hard money lending programs. This is typically called ‘Alt-A’ financing or lending.
CommLending is second to none when it comes to commercial real estate lending and multifamily (apartment building) loans. I highly recommend them!
Self Storage Loan Expertise
At CommLending, we specialize in self storage loans. Did you know that some of our team members also own self storage units? This knowledge and expertise allows us to fully understand your business and financing needs. Opening and operating a self storage business is a full time job, so when it’s time to secure a self storage loan or financing, we take the hassles out of the qualification process typically found through traditional banks and conventional commercial lending.
How Self Storage Loans Work
As with typical conventional self storage loans and financing offered by retail commercial banks and institutions, CommLending will not look to only equity and collateral to qualify you for your self storage loan. We think outside the box and realize that these two factors should not be the sole reason for qualification. Most of our self storage loan programs allow you to use your cash flow to qualify for your loan – which is your ability to pay us back. Since available cash flow is the lifeline of your business, we take that into serious consideration when creating your loan.
Self Storage Loan Qualifications
Self storage loans and financing at CommLending comes in the form of a commercial real estate loan. While we do not offer conventional loan programs like Fannie Mae and Freddi Mac, our loan qualifications are not as tight and our approval and funding process is a lot faster!
Our self storage loans have repayment terms from 5-25 years. As with most commercial real estate loans, the longer the term the lower the monthly payment.
As with most of our commercial real estate loan programs, we look at a few factors when considering your self storage loan application:
- Your business’s financial performance
Your credit worthiness
The loan-to-value (LTV)
Cash flow
The Best Fit for Self Storage Loans & Financing
There are a few reasons why you might need a self storage commercial real estate loan. In most cases, it’s to expand your commercial real estate portfolio.
Here are some of the most common uses of self storage financing:
- Purchasing a new self storage business
Construction of a self storage facility / property
Expanding your self storage property with additional units
Remodeling or rehabilitation of your self storage property
Refinancing your self storage property
Using your proerty as a bridge loan to secure another commercial property
Multifamily & Apartment Building Loans FAQs
While your rate will be subject to qualification and underwriting, most borrowers that meet our multifamily and apartment building loan guidelines can expect a rate between 4.25 to 6.50%.
While we like to look at the whole deal from a high level, credit does play a role in our approval process for apartment building loans and multifamily financing. Credit scores should be 680 mid-score or higher.
Our multifamily financing and apartment building commercial loans are Non-recourse.
Most multifamily and apartment building loans, as well as other commercial real estate financing offered by CommLending, fall somewhere in between $1,000,000.00 and $30,000,000.00.