Self Storage Facility Loans

Self Storage and Ministorage Facility Loans

What is a self storage or ministorage loan?

This refers to secure financing for your self storage facility through a special-purpose loan for commercial property. This financing option allows people to keep their personal belongings away from their primary residence. The self storage mortgage lenders category includes banks, non-banks and private lenders. 

It is also common that you as a borrower can seek self storage financing options to buy, refinance and build a new structure. Owners of self storage properties usually refinance their loans to get a better rate and term. You can also pursue a cash-out mortgage in first or second lien position in order to fund improvements, rehab, expansion or other enhancements. Self storage construction financing is also available to aid you in building facilities.

Self storage construction financing is also available to aid borrowers in building facilities. Are you interested in building a new commercial facility? If yes then you can search for the right lenders offering self storage mortgages. For the search, you can use our Construction Lenders’ Search Engine.

Self storage financing can be used to:

  • Purchase an existing self storage or ministorage building

  • Refinance the expiring term mortgage with a new rate and term

  • Refinance to get cash out of the property

  • Acquire a lot and develop it into a ministorage or self storage facility

  • Reposition the property in the market

What are some common types of self storage loans?

  • Small business bank loans guaranteed by government agencies, like SBA 7(a), SBA 504 and USDA B & I

  • Bridge loans to carry the property to permanent financing

  • 65% LTV, recourse or non-recourse purchase and refinance loans from $250K to $3M

  • 2nd lien cash-out self storage financing up to 75% CLTV

  • 3-year term mortgages up to $20M that close within three weeks

  • 75% LTV on a 5-year hybrid mortgage

  • No credit or bad credit equity driven hard money loans that close in 7 days

  • Portfolio lender, all credit considered with flexible terms and underwriting and loans starting at $100K

  • No minimum credit score, small markets OK, up to 75% LTV, bridge loans

  • Cash-out refinance up to 75% LTV and up to 90% LTC for construction or value-add

  • Self storage construction financing

  • Construction take-out permanent loan

 

How Can You Secure a Loan For Your Self Storage Facility?

You should approach banks and credit unions for ready-made financing on conventional self storage loans. Lenders in this category will require full documentation. You will also need an appraisal of you wish to secure a loan with the lowest interest rate. 

There are non-bank lenders who fund loans and sell them to third-parties while keeping the loans in a portfolio. If you are looking for a self-storage financing with quick closing process, you should consider low-documentation loans such as hard money loan. This is because a hard money lender will only require you to have equity in your primary residence or property. 

Enter your mortgage details in any lender search above and it will show you a list of all self storage lenders offering a loan matching your specific needs and scenario. You can also Click on the “Contact” button for the lenders to get your hands on lender’s particulars along with contact information. The lender will contact you shortly to discuss your needs.

If you’re an owner of a self storage facility, you might want to find a commercial mortgage broker to assist you. All of the direct lenders offering self storage financing that you will find here tend to collaborate with mortgage brokers in order to secure funds for their clients.

What is a self storage hard money mortgage?

Non-bank or private lenders often offer hard money financing based on the tangential value of the property in question. Hard money loans offer some benefits to you as a borrower. This includes the ability to fund quickly (often in less than two weeks) and more lenient documentation requirements than traditional banks and credit unions. 

Additional features offer by a hard money loan to finance a self storage facility include: 

  • Borrowers putting 25% or more down

  • CLTV’s of 65% or less of the value of the property

  • Short term repayment of three years or less

  • Self storage financing rates starting at 8.99%. 

Do you have immediate need to secure a loan for repairing storm damaged building then this type of mortgage will be an ideal solution for you.

You can often use a hard money mortgage to stabilize a property that is in need of an upgrade. This will help you attract more customers as well as boost your cash flow. Once stabilized, you can exit exits the hard money mortgage by obtaining another permanent financing.

 

Which lenders offer financing for self storage properties?

There are plenty of self storage lenders in the marketplace but you must select the lender depending on your unique loan scenario. This category of properties offer reliable cash flow, but these buildings are most attractive for all types of lenders. Use the search engine above to see how many of the 130 +/- direct lenders in our database can finance your ministorage or self storage property.