Lending on self-storage facilities has become better for investors due to the 2010 provisions in the Small Business Job Act which makes them eligible for financing under SBA loan program. This type of income property has grownin popularity over the years as it provides investors with attractive yearly investment returns.
Many borrowers use the SBA 504 (up to 85% CLTV) or SBA 7a loans (up to 90% LTV), or commercial lenders who offer up to 75% LTV.
A substantial number of large banks will not finance self storage or mini-storage facilities irregardless if the property is close to being fully-occupied, in good condition, and the borrower possessing excellent credit. Self Storage and Mini Storage facilities can be ideal investment property for savvy investors and we have the financing programs for these commercial properties.
Properties that qualify are multi-tenant properties which includes warehouses designated for storage, along with traditional self-storage buildings.