All Forum Posts by: Bill Pederson

Hello,

Wondering does Bigger Pockets have a lease template that people use on this forum and if so where do you find it?  Do we need to become a paying customer to access it?

thank you

Bill

SD

Hi Ruth Ann,

I would interview Real Property Management in Sioux Falls although I don't use them yet I will in the future once I buy properties in Sioux Falls.  At the moment my properties are in MN and Mitchell SD.   

Thank you everyone for your wonderful feedback,

The market for self storage in my town is very tight I know this first had for it took me only one season or less than a year to fill up our non-climate controlled units. Every day I am turning people away and all I hear is every storage facility in the city is full. I talked with my General contractor and he said if we started construction this fall we would be open by April and I am confident I would be at 50% occupied in 6 to 9 months for that is how long it took to fill up on the first phase. Now we have brand recognition and great Google ratings and traffic.

I do have built into the construction loan $85,000 for interest payments until we are stabilized. The loan would be for $1,250,000 of which $150,000 would be for the land. My Bank wants at least the land paid for by me before looking at the deal. I like the idea of bringing on a temporary partner with a buyout clause once we get stabilized in fact maybe I could talk to the landowner and see if he would be interested in doing this.

Thanks again for you help I hope to past it on when I get the chance.

Bill

Greetings,

1.5 years ago I was able to purchase 2.5 acres of land free and clear by taking a mortgage out on my home. I built a 254 unit state of art self storage facility which we are at 90% full. My average expenses now that we are stabilized are $72,000 per year and my gross rents are $270,000 which give me a NOI of $198,000. Using a cap rate of 8% I would get a value of $2,475,000 which I owe $1,747,000. Using these numbers I should have $728,000 in total equity to use for the expansion across the street from our first phase. On our non climate controlled units we are full and have been full for 6 months. I have a small window of time to acquire land across the street for a good price to add an additional 24,000 sq. ft. of storage. I did talk with my bank and because I took an SBA loan out on our first project I can't refinance my current loan in order to use the equity to start phase 2. My dilemma is that I have sunk every cent that I have into the first phase and do not have cash to buy the land across the street to start building and the seller is not going to wait very much longer before he sells to someone else. I really don't want to bring on a partner being that it would be in competition with our current facility.

My question is does anyone have advice on how I could get financing to set up phase 2. I was thinking of a hard money lender but not sure who to contact. I live in Sioux Falls South Dakota and I am not sure we have hard money lenders in our state.

thanks so much for your time,

Bill Pederson