All Forum Posts by: Matthew Turcotte

@Paul Moore - Yes, I read Brian's book and it's excellent. I invested in my first syndication last year and would like to find another one sometime this year. 

@Taylor L. - Spartan is one of the funds I've been looking at. Could you share your experience? If you prefer, feel free to PM me. Thanks! 

I currently own a portfolio of self storage facilities in my county but I'd like to invest outside of my area. I've been researching and vetting syndicators. Does anybody have any they'd recommend or have had positive experiences with? Thanks! 

@Zach Quick - They are located in upstate NY. I guess I want the best of both worlds, paying them off and expanding! Haha! I figure that I'm young but I would ultimately like to pay them off but I figure with the historic low interest rates, it's a good time to pull out some equity and put it to use.

I am 26 years old and am looking to refinance my self storage portfolio. The current loan balance I have is approximately $1.92 million. I am looking to borrow an additional $300,000 for expansion projects. All of the properties have been purchased within the last 5 years. Using my local bank,  the terms of the existing loans are 20 yr term with an interest rate that resets every 5 years. Currently, my rates range from 4.75%-5.75%.

I have enlisted a mortgage broker and the best rates and terms I can find are as follows:

25 year amm, 5.75%-6%, 10 year fixed  

20 year amm, 5.08%, 10 year fixed 

What I am seeking advice on is whether I should refinance the entire portfolio or not. It appears interest rates will continue to rise, and as it stands with my current financing situation, I have 3 more interest rate resets I will be subject to over the next 15 years.

If I refinance, the closing costs are expensive, but it will let me consolidate and make me subject to only 1 or 2 interest rate resets over the next 20-25 years (depending on the amortization schedule). This is appealing because it gives me greater control over my monthly payment and I can pull equity for construction. 

Alternatively, if I refinance, I'll be paying more interest over a longer period of time and I am essentially starting over again with my payments. Another option is to not refinance, and I could get a loan for my expansion projects with minimal closing costs and no fuss, but I will again have another 20 year loan subject to 4 interest rate resets.

My ultimate goal is to have to pay off the portfolio. I plan to hang onto it for the long term. Any thoughts or suggestions are greatly appreciated. 

Thanks!

Thank you @Michael Wagner & @Kris Benson for this info. That seems to be the same consensus for most of the people I have asked.  I did stumble across a couple direct lenders that appear to offer longer term financing but I am still waiting to get details from them. See links below: 

https://largocapital.com/property-types/self-stora...

https://a10capital.com/lending-terms/perm-paramete...

I've been hunting around to see what other direct capital firms may offer.

My goal is to grow the portfolio and I'd like to pull some equity out as part of the refinance for some expansion projects. Ideally, I would love to own these free and clear someday but I figure I have some time before I'm ready to retire! =)

I have a portfolio of 6 self storage facilities that are currently financed with a local bank. The current arrangement of our mortgages is that every 5 years the interest rate will reset. We currently have a 20 year term. 

I am looking to refinance our portfolio and lock in a long term interest rate (ideally for 20 years). I have reached out to a variety of direct lenders, CMBS lenders, etc. and the majority have said that they can only fix the interest rate for 10 years. Does anyone know of any lenders that would consider a long term interest rate lock? Is that something that is unusual in the self storage industry? I greatly appreciate it.