There’s an interesting story this week in Nation’s Building News, the weekly e-newsletter from the National Home Builders Association. Titled, Honesty, Understanding Keys to Negotiating With Lenders, the article states lenders are open to finding solutions for builders despite today’s tighter lending practices.

This is true in the self-storage industry, too. “Banks are lending and deals are getting done in today’s market environment,” Shawn Hill writes in the May View from the Street. But when refinancing, self-storage owners need to be sure they’re not overleveraged, Hill warns.

In the column, Hill offers a “quick and dirty” analysis to determine if a loan is overleveraged by conducting a “stressed loan constant sizing analysis.” The analysis will help owners gain a better perspective of where they stand and what a lender will likely conclude. He also advises self-storage owners be proactive about their loans, and consider all possibilities.

Before you schedule an appointment with your loan officer, brush up on self-storage financing with these great articles from the Inside Self-Storage archives: