Mini - Self Storage Units
Financing Mini Self Storage Loans
MFI specializes in obtaining permanent loans for mini self storage purchases or re-financing. It’s easy to apply for financing mini self storage unit loans and we have numerous wholesale commercial lending relationships with institutions that know this industry inside and out.
The Investment Angle
Success and Failure Rates
The statistics for these investments are encouraging. Lenders financing purchase and refinance loans of mini self storage properties take note that the number of these properties that went into the FDIC or RTC for sale due to foreclosure was quite less than other real-estate properties being foreclosed. Of the 8 percent in self-storage facility failures, a large number of properties were taken back because they were collateral for other projects.
During those times when a certain market is experiencing an economic come back business grows, employment opportunities increase and sales of single-family homes start to rise. Research by lenders of these property’s rent rolls during these times should show a higher percentage of mobile customers and people moving into the market for the first time. On the commercial side, increased business actively means an increased volume of U-Store-It commercial tenants.
On the other hand, when the economy starts to slow down, the same happens to business, employment and the markets in general. However, the opposite effect still causes the same mobility that most often benefits mini-storage. People begin to move or selling their houses and moving into smaller homes or apartments. Commercial businesses pullback or look to these properties for storing inventories. Approving financing applications for loans on mini-self storage investments are attractive to commercial lenders.
A staggering economy does have a negative impact on this industry. During down turns in the economy, multi-family vacancy rates can increase as much as 25 percent, while office and retail vacancies increase as much as 30 percent. This is lost revenue to commercial office and retail properties. It is not recovered until the markets and the economy recovers .