These days, everyone has more stuff than they have places to put all of it. As expected, DIY storage and mini-storage facilities have popped up by the thousands from coast to coast in recent times. From major urbanized areas to suburbs to small towns, they’re all over the place. And for space-challenged individuals and companies, they have become indispensable. This makes commercial self storage facilities a good industry in which to leap into. But with land, buildings and facilities, they can also tie up plenty of capital.
If you’re the owner of a few of these facilities, you may very well be looking for methods of refinancing a commercial self storage facility. Well, there’s excellent news for you. According to the Web site www.sba504blog.com, those seeking refinancing a commercial storage facility are now ( recently 2010 ) eligible for Small enterprise Administration ( SBA ) loans of up to 90 p.c loan-to-value ( LTV ) of the facility’s property. Previously, refinancing a commercial self storage facility under an SBA program were only suitable if over fifty percent of the facility’s income was derived from sources apart from the monthly rental of storage space. ( Try making sense of that one )
The new suggestions permit firms which derive a lot of their revenues from passive ( i.e, rental ) earnings to qualify for SBA programs, as long as the owner controls both entry and exit to the premises. This makes refinancing a commercial self storage facility much more of a given .
One critical note about refinancing a commercial storage facility nonetheless technically these guidelines apply only to “owner occupied / owner user” properties. Therefore , there’s considerable debate about whether absentee-owned facilities or those which aren’t locally-owned are fit for refinancing of a mini-storage business, even under the new tenets.
However , the new guiding principles now make it possible to purchase or refinance multiple mini-storage warehouses, even if you already own more than one. In reality the maximum eligibility is currently up to $5 million for regular SBA loans, and all of the way up to $5.5 million for energy efficient ( “green” ) facilities.
The increased suitability and increased maximums represent a noteworthy opportunity for those looking to refinance a commercial storage facility. So who do you talk to to get additional info or to begin the process of refinancing your commercial self storage facility?
Try Venture Funding Group and their FAST TRACK program.
Venture Funding Group is an expert when it comes to working with the Small enterprise Administration to help business owners get the funding that they need for refinancing a commercial storage facility and refinancing commercial passive income properties, for example office buildings, strip malls, trailer parks and campgrounds, and flea markets, all of which had been excluded under past SBA suggestions.
Why waste your resources dealing directly with bankers or the SBA? Venture Funding Group knows the ropes, the proper way to streamline the whole process, and the way to get things done when it comes to refinancing a self storage facility.
Under the SBA 504 Program, owners of mini-storage properties can refinance a commercial building loan with a lower regular payment, at lower interest, and with less private risk with a 90% LTV. This 90% LTV program from the SBA will help you find financing even with lower credit ratings.
To learn more, click on www.thesbaloan.com now for completely free consultation and information. Or call us at 1-800-578-4884.
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