The Self Storage University Podcast

Seller carry, bank debt, conduit financing – those are the typical ways you finance a self-storage facility. But there’s another method that rarely gets discussed: “hard-money” lending. In this Self-Storage University podcast we’re going to explore the concept of hard-money loans and drill down on the risks associated with this alternative funding source.

Whether you’re building a storage facility or just getting routine maintenance completed, you can’t really be in the storage business without working with contractors. But there is a certain etiquette to this relationship that is essential to protect your interests. In this Self-Storage University podcast we’re going to discuss how to properly structure your relationship with contractors and avoid their typical pitfalls.

Every loan must bear interest, and when you borrow from a bank that number is typically non-negotiable. However, with seller financing the interest rate is subject to negotiation. In this Self-Storage University podcast we’re going to explore strategies for determining the correct interest rate on seller-carry debt.

When it comes to getting a loan on a self-storage facility, the better you are at attracting banks the better your loan options will be. So how can you build your lender popularity? In his Self-Storage University podcast we’re going to review some the basic steps and skills that will make you a more desirable bank customer.

One of the cardinal rules of investing in a self-storage facility is making sure you have your downside protected. To help facilitate this analysis, many buyers and lenders will “stress test” the proposed deal to see if they can survive the “worst case” scenario. In ths Self-Storage University podcast we’re going to explore the correct way to “stress test” a deal and what the key metrics need to prove in order to go forward.

There is around $2 trillion of commercial real estate loans coming due in the next two years, and there’s an anticipated $1 trillion of losses when those loans renew, thanks to the terrible performance of office and retail properties. And most of this financial catastrophe will fall upon regional banks that may well fail and send the entire banking industry into a freefall, similar to what happened in the Texas Savings & Loan crash of 1987. In this Self-Storage University podcast we’re going to explore what the “commercial lending apocalypse” is all about and how to insulate yourself from the potential impact.

Bank interest rates are at the highest level in the past 40 years. But it still doesn’t make sense to buy a storage facility with all-cash. In this Self-Storage University podcast we’re going to discuss why buying properties with 100% cash and no debt is not a winning concept except in certain circumstances.

There are several ways to find a self-storage facility to buy. Two of the best are “cold-calling” and “direct mail” – but happens when you combine them together? In this Self-Storage University podcast we’re going to review the powerful force that can be created by combining the postal service and the telephone.

Did you know that hitting a fiber optic cable with your post-hole digger can bankrupt you? There are a large number of buried utilities in the U.S. that you might hit every time you put a shovel in the ground if you don’t follow the correct procedure. In this Self-Storage University podcast we’re going to discuss why this is a big issue and how to protect yourself.

One great way to find a self-storage facility to buy is a simple direct mail piece. But with so much mail landing in mailboxes across America, how can you stand out from the pack? On this Self-Storage University podcast we’re going to explore some of the options and theory behind making your direct mail piece a more effective tool.

On most on-line offerings, the time on the market is featured somewhere in the listing. This is one of the most valuable pieces of information available – yet many buyers overlook its importance. In this Self-Storage University podcast we’re going to explore how knowing how long a facility has been up for sale can prove to be a useful tool in getting it under contract.

There are many different ways to find a self-storage facility to buy, but one of the best is working with a broker. But aren’t brokers only interested in working with big, experienced buyers? In this Self-Storage University Podcast we’re going to delve into the basics of building a relationship with a broker and why being big is not always the important factor.

Even though we don’t know it yet, experts predict that we are already at the start of the next Great Recession. There are two ways to approach a U.S. economic downturn: 1) with fear and loathing or 2) with a healthy optimism. In this Self-Storage University podcast we’re going to explore some positive attributes regarding recessions.

You can’t buy a self-storage facility without a survey. But most buyers do not get the most out of the survey nor do they understand what a proper survey should even reflect. In this Self-Storage University podcast we’re going to review the topic of surveys and what you can do to get a more successful survey drawn.

Some sellers are flexible and other won’t budge on their price. In this Self-Storage University podcast we’re going to review some creative ways to achieve a good price when the seller is unwilling to work with the buyer or acknowledge the normal rules of negotiating.

With the turmoil in the lending market, finding ways to lock on lower interest rates – or just have a willing lender with knowledge of the asset – have become very important. And often this revolves around doing a loan “assumption” or some type of derivation of that concept. In this Self-Storage University podcast we’re going to review how loan assumption works and give you tips on how to successfully approach it.

You can’t buy real estate with at least some cash for a down-payment. But what do you do when you exhaust your personal money yet still find deals to buy and need a source of the capital to get the job done? In this Self-Storage University podcast we’re going to explore the different types of capital partners and what their benefits and disadvantages are.

It’s no surprise that self-storage facility loan interest rates have gone up to the highest level in nearly 40 years – and in only 18 months. And there has to be a correlation between these increases and the arrival of loan defaults on the part of many facilities. But when? And how can you put yourself in a position to buy these deals when they come to pass? That’s the topic of this week’s Self-Storage University podcast.

There is a revolution going on in the labor market and the implications are rumbling through all areas of employment. How will self-storage fare in the newfound quest of employees to fight for staggering wage increases. In this Self-Storage University podcast we’re going to explore this timely topic as the wage war rages on.

The most dangerous – and profitable – tool in buying self-storage facilities is debt. It can either greatly enhance your rate or return or drag you down and drown you. In this Self-Storage University podcast we’re going to explore debt, how it works, and what the pitfalls are at a time when interest rates are at 40-year highs.

Buying a self-storage property typically revolves around getting the seller to do something, and that skill is called “persuasion”. But how does it work and how can you be better at it? In this Self-Storage University podcast we’re going to explore the basic methods of persuasion and how to practice them.

Real estate is all about leverage and obtaining debt is a big part of successfully buying a self-storage facility. So how do you find a bank? In this Self-Storage University podcast we’re going to give you the simple steps required to find a lender.

One of the key components – in fact the first thing you notice when you pull into the facility – of any self-storage property are the paved surfaces. Unfortunately, there are some unscrupulous paving companies that see your dependence on road quality as an ample opportunity to trap you into paying more than you should. In this Self-Storage University podcast we’re going to review the typical paving scams and how to block them.

I recently leased two storage units – one in a city of 2.8 million and one in a city of 4,500. And the results perfectly illustrate where the money is in self-storage investing today and where the money definitely is not. And it’s amazing how the tide has turned.

You’ve got bank debt, and you’ve got seller carry – and then there’s the hybrid called a “wrap” note. But what does that mean, how do they work, and what do you have to watch out for? That’s the focus of this Self-Storage University podcast. If you’re looking at alternative financing options in the current interest rate climate, then this topic should be of great interest.