Self Storage Q19 Bank Financing Self Storage

One of the things that I really appreciate about self storage is the types of leverage that are available to me from banks and from other capital sources. Self storage in general is inherently very recession resilient. And this has been proven time and time again, when you look back over the last 40 years and study the data from banks themselves. What we find is that self storage has one of the lowest default rates across other asset classes, especially in the real estate sector. And in the rare chance that those self storage facilities are defaulting. Usually the loss experienced by the bank is actually lower than other losses that they would experience say in multifamily or single family. For that reason, banks love to put self storage on their books or onto their portfolio because it levels out the risk across their global portfolio. Because of that, the types of terms we're receiving are pretty advantageous.

You can expect with a new relationship with a bank to be in the 75% to 80% loan to cost range or loan to value range. And once you establish your relationship with that bank as a, you know, an expert operator and someone that knows what they're doing with a history of a good track record, you can even start getting into the 90%, 95% and a hundred percent leverage range. Actually, of the last four self storage facilities I purchased, three of them were actually financed at a hundred percent financing, which means I didn't have to bring any money to the table. When we went to closing, there were 0% down loans.

If you'd like to learn more about self storage, feel free to reach out. You can drop me a line at www.TheStorageStud.com

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firm’s finance and acquisitions departments. Fernando Angelucci and Steven Wear founded Titan Wealth Group in 2015, and under his leadership, the firm’s revenue has grown over 100% year over year. Today,
Find out more at

https://www.TheStorageStud.com
http://titanwealthgroup.com/

Titan Wealth Group operates nationwide sourcing off market investment properties for Titan Wealth Group’s acquisition as well as servicing a network of thousands of active real estate investors world wide. Prior to founding Titan Wealth Group, Fernando worked for Dow Chemical, a Fortune 50 company, rolling out a flagship product estimated to gross $1B in global revenues.
With an engineering background, Fernando is able to approach real estate investing with a keen analytical mindset that allows Titan Wealth Group to identify opportunities and project accurate pictures of future performance.
Fernando graduated from the University of Illinois at Urbana-Champaign with a B.A. degree in Technical Systems Management.
Titan Wealth Group was founded in 2015 with the vision of gathering individual investors that have the means to invest but lack either the time to find high-yield investment opportunities or the access to these off-market deals. All too often, founders Fernando Angelucci & Steven Wear came across investors who had deployed their capital only to regret the lack of consistency or degree of returns their investments were producing. In response, Titan Wealth Group provides access to highly-vetted real estate secured investments and off-market acquisition opportunities primarily in the Greater Chicago MSA. Today, Titan Wealth Group not only assists individual investors but has grown to support the acquisition goals and capital deployment of investment groups, private equity firms, and real estate investment trusts (REITs).
As a facilitator of wealth growth, Titan Wealth Group believes that success is not limited to the sum of our efforts and is infinite with what can be accomplished through partnership.
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