• The Art of the Cap Rate
    Economics is sometimes called the “dismal science” because it can present bad news about money and the economy. In the economics of self-storage, the calculation of an overall capitalization rate, or “cap rate,” might be called an abysmal science because there is much ...More
    November 1, 2004 R. Christian Sonne Posted in Articles, Finance
  • Financing Your Car Wash
    Before investing in a car wash, potential investors and operators ask these basic questions: How much does it cost? How do I finance it? What options are available? How do I put this whole project together? What kind of return can I expect? These are the fundamental ...More
    November 1, 2004 Fred Grauer Posted in Articles, Finance
  • Looking Back and Giving Thanks
    As I write my last column for 2004, I cannot believe another year is almost over. Our industry confronted some major issues in the past 12 months. For one, FBI agents visited facilities and talked with owners and managers about the need for extra diligence in the operation ...More
    November 1, 2004 Jim Chiswell Posted in Articles
  • Employee Credit-Card Fraud
    Incidents of credit-card fraud and identity theft have risen dramatically in recent years. With increased use of e-commerce and technology in business, it has become easy for thieves to steal and misuse credit-card numbers. The dangers do not always come from outside a ...More
    November 1, 2004 Amy Brown Posted in Articles, Finance
  • The Conduit-Financing Pool
    Regardless of the weather, the pool is open—the conduit-financing pool, that is. More commercial real estate borrowers are diving into the opportunities offered by conduit financing. With its proven structures and acceptance by the investment community, conduit financing ...More
    November 1, 2004 Neal Gussis and Shawn Hill Posted in Articles, Finance
  • Money-Mind Control
    It seems everyone I know is refinancing their home these days. They want to get in on the goods before interest rates—as rumored—head north again. In self-storage, too, owners are being encouraged to take advantage of low rates before the train leaves the station. Now … ...More
    November 1, 2004 Teri L. Lanza Posted in Articles
  • Self-Storage Construction Loans
    Many first-time self-storage developers assume a construction loan is similar to permanent financing. But approaching financing from this perspective may create long-term negative consequences. Construction and development financing is radically different from other credit ...More
    November 1, 2004 RK Kliebenstein Posted in Articles, Finance
  • Don’t Sell Anything
    Some salespeople think if they are persuasive and persistent enough, they can get people to give in and buy. But fact of the matter is you cannot sell anyone anything. People make up their own minds. You can put your offer in front of them. You can rattle off features and ...More
    November 1, 2004 Tron Jordheim Posted in Articles
  • Cap Rates—A Mystery Unveiled
    If you are buying, selling or refinancing a self-storage property, you can’t have a three-minute conversation without the term “cap rate” coming up. Everyone acts as if they know what this is—a few really do know, many more think they know, and some refuse to admit they ...More
    November 1, 2004 Michael L. McCune Posted in Articles, Finance
  • Capital Types and Trends
    What are two financing facts many storage owners are surprised to learn? One, there are more types of permanent, bridge and construction loans available today than at any time in the history of the industry; and two, lenders are more likely to add “custom” loan terms and ...More
    November 1, 2004 Jim Davies and Eric Snyder Posted in Articles, Finance