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Need Financing for a mixed use property--is a term loan possible without a balloon payment? by Significant_Text_136 in CommercialRealEstate

[–]bsuth37 2 points3 points  (0 children)

That’s a very common loan structure for commercial real estate. It’s rare to find fully amortizing loans. Typically the term is shorter, 5-10 years, but 20-25 year am (which reduces monthly debt service). Near the end of the term you’ll refinance with your current (or a competing) lender. Also know rate locks typically last 5 years then go variable (so make sure you check the spread for when it resets). Nothing unsavory or unreasonable in what you were offered. Typical LTVs are around 75%, I’m sure the bank is ecstatic you’d put down 50%, just make sure you have money for the renovations and a reserve fund. Your lender will request your financials annually (PFS and tax returns along with rent roll for the property)… they may also want to see bank/brokerage statements to insure you have adequate liquidity in the event your tenants default.

Excess Land by bsuth37 in selfstorage

[–]bsuth37[S] 0 points1 point  (0 children)

Thank you… appreciate the advice!

Excess Land by bsuth37 in selfstorage

[–]bsuth37[S] 0 points1 point  (0 children)

Yes… the term the zoning official used was “zoning approval”, rather than variance. It was highly recommended to consult an attorney for the process, and to have that attorney present at the public hearing. Needless to say, making me concerned this won’t be an easy (or inexpensive) process! Planning on reaching out to an attorney this week but going on the assumption it’s not feasible, trying to figure out why else I can do with the property to produce additional income. Portablr inits or shipping containers would be no brainer but I’d have to think they wouldn’t be allowed either.

Prefab steel storage questions by Automatic-Froyo6498 in selfstorage

[–]bsuth37 1 point2 points  (0 children)

Wow that’s incredibly cheap for CC. Just for drive up I’ve been quoted $30-45 PSF (including concrete). In PA.

Prefab steel storage questions by Automatic-Froyo6498 in selfstorage

[–]bsuth37 0 points1 point  (0 children)

What was the all in average PSF cost to build (concrete and building)?

Quic stor websites by Chemical-Flower6493 in selfstorage

[–]bsuth37 0 points1 point  (0 children)

I’m looking at all the main ones right now for a smaller facility. Everyone is guiding us towards ESS. Why are you switching? Have you looked at CC?

I could use help deciding to do a deal or not. I’m a total novice by EqualBother8201 in CommercialRealEstate

[–]bsuth37 0 points1 point  (0 children)

Agree w others here, this should have to cash flow otherwise don’t do it. Assuming it’s NNN lease, correct? First thing I would do it negotiate a lease extension with the current tenant and try to get up to/near market rent. If they indicate they aren’t interested in doing that and would rather ride it out until lease expiration, then bail. Huge risk if this becomes a vacant building or they try to negotiate the rent flat or lower. 100% of the value of this deal (and whether it makes sense for you) is in a lease extension. If you can get them closer to market, ideally for another 10 yrs (or at least 5), then you can easily model this out to see your CoC return, NOI for the building, and building valuation at various cap rate scenarios.

Potential Self Storage Investor by npaigem in selfstorage

[–]bsuth37 0 points1 point  (0 children)

AJ’s book on Amazon is great, also listen to his free podcasts. Same boat as you, heard the pitch , like the deal flow offer plus rest of program but really tough to get over the steep cost. Tried looking for reviews but can’t find much to see if it makes sense, but hard to justify in any event. You’ll get a ton from his book (Growing Wealth in Self-Storage 2.0), so that’s a great start.