All Forum Posts by: Brandon Yuan

@Brandon Yuan regardless of which way you go, make sure that you deal with a bank that understands self storage. I’ve seen many a deal that came to us because the bank couldn’t get comfortable with the lease up period on a new project and the borrower lost months having to start over with another bank.

Providing a tax return would be highly unusual in my experience. Generally a T12 and prior two to three full years income and expenses (broken down by month) along with a current rent roll is enough. During your due diligence you'll want to back up the financials with one year's utility bills, copies of the service contracts, and a lease-file audit (comparing the leases to the rent roll).

Perhaps in the smaller commercial space where you are dealing with mom and pop type of properties you might ask for and receive a Schedule E, but in larger transactions you just don't typically see that.

also, I'd personally help with generating leads for new tenant and have manager mainly helping with onsite tasks (showing, move in, etc) for the short term. considering he's 70 years old as you mentioned, he probably are not as effective as using online tools for generating lead (FB marketplace, zillow rental manager, etc)

Originally posted by @Cody F.:

Thank you, Bjorn.  Yeah, We definitely were not fully aware of the situation we were walking into like we thought we were. The lender looked at the books for the year and I guess they didn't care about the month to month. There was no seller financing involved. 

You're right, I have to make sure it's known that my partner and I  as the LL's will not let these things go on.  I plan on enforcing the strict eviction policy if it means I have to remove 20 tenants at once. it may seem painful but I believe it's like a band-aid, you just need to rip it off quick instead of letting the pain drag on. 

ohhh... I haven't even gotten started on the resident manager.  He is a super nice guy!! but he has no urgency and isn't motivated to get anything done. afterall, he is 70 years old. He's been managing the apartment complex for 20years and all of the tenants respect him and he's really good at keeping the riff raff in line.  He's good at collecting and depositing checks into my account and keeping small accounting and papers in line. but when it comes to getting new tenants, and turning over apartments, theres no drive to get anything done. He has a seperate job, and is very active in his church.  He is so busy with other things, that it seems that he has trouble keeping track of the apartment complex and is neglecting his duties it seems.  He gets 500 per month, a 475 dollar apartment, and his utilities paid as his salary.  I also told the former owners that he'd be in good hands, which I like to keep my word. 

not too sure about that situation yet either. 

The laundry.  Yeah, the bill I get is for electricity and water for the building the washers and dryers are located in.  it comes out to 1800 dollars a month.  We have a contract with a company who maintain the washers and dryers, and collect the coins. We split it 50/50.  Our cut on average is 400 dollars per month.  That can't continue, especially if we're in the red on our income. 

@Brandon Yuan we have used many brokers who specialize in storage.  Their interest may be dependent on the size of the project.

Talonvest and SkyMar capital are two brokers to look into.....

Kris

Our team will be happy to see if we can be of service! Thanks for the mention, Brandon!

@Brandon Yuan I'd love to run the numbers on this one and see if we can get you financed. 

then if it’s over a million of loan balance you may want to consider Freddie Mac small Ballance loan.  Do you have a broker for these?