Equity Funding Blog

Successful Self Storage Financing

self-storage-financing

I recently drove from Cincinnati to New York City. I saw a lot of great scenery and met some really nice people. What surprised me the most was the number of self-storage facilities I saw. They are in nearly every town, large and small. Behind every one of those facilities is a small-business owner. I wondered what is the market, how did they get financed, and how might EquityNet help others.

If you are in the business, you already know that:

  • About 10% of households in the US rents a unit, even though most of those households have a garage, attic, or basement.
  • The occupancy rate for those units has been hovering around 90% since 2015.
  • Rents for non-climate-controlled facilities are expected to increase about 3% in the foreseeable future, with climate-controlled facilities growing at a higher rate.
  • This $30+B market is expected to grow annually by more than 3%.

This is a hot but competitive market. Financing for small businesses got tight with the Great Recession and hasn’t gotten any easier for most industry sectors. Large banks are looking for large projects to benefit from their economies of scale. Smaller banks often want to lend to small businesses, but the regulations have increased their costs of doing business.

So, what are you to do if you want to:

  • refinance or consolidate your current loans to get a better rate and simplify your financing?
  • get financing so you can add to your current number of units?
  • upgrade your facility by adding climate controls, technology-based access control, additional security (all of which will allow you to charge more rent per unit)?
  • acquire a competitor, knowing you can operate it more efficiently or benefit from expanding your market and brand reach?

That is where EquityNet comes in.

  • Our team can walk you through the financing process, whether you want equity or a loan.
  • We help you understand what you need to do to be ready for financing and what you need to do so you look ready to lenders.
  • We expedite your exposure to our portfolio of more than 3,000 accredited investors and more than 100 lending partners.

We succeed when we help you succeed. Let’s get started!

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