Updated almost 5 years ago on . Most recent reply
Financing Shipping containers
Was hoping for some advise. We are trying to get a new development financed that is a 50 unit self storage facility using shipping containers. The issue I am running into is financing. The grading, fencing and security of the site will be about $143,000 and the containers will be about $240,000 delivered. After speaking with a few banks I was informed that the hesitation is the fact that the containers are not affixed to the land so its difficult for the bank to collateralize or leverage the development. I was told that essentially the land portion could go construction but may be best if done as a land loan. The containers a bank wont touch. Any creative suggestion on how to finance this? One option is to bank loan the construction and personal loan the containers for a year? Any advise?
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Containers are considered equipment, so yo can look into financing it as equipment loan, my be 70% LTV or so. Some companies that sell the shipping containers, actually have an inhouse financing partner that they can finance them for you, the % and LTV varies.