Legalities and Benefits of Cost Segregation
As we close the books on another fiscal year, self-storage owners should be looking for ways to keep more of their money. If you are depreciating your facility over 39 years, you may be sitting on a financial windfall through the use of cost segregation. While the window ...More
March 1, 2004 Kathleen Humen
Posted in Articles,
Finance
Understanding Cap Rates
"Capitalization rate,” or “cap rate,” is one of the most misunderstood terms in the self-storage business. I always feel a bit uncomfortable bringing up the subject of cap rates when discussing the sale of a property with its owner. I don’t know ...More
February 1, 2004 Bill Alter
Posted in Articles,
Finance
Whose Cap Rate Is It?
Buyers and sellers of investment real estate are always looking for ways to measure their most recent acquisition or sale. Some buyers will use an industry rent multiplier to see if their property is in the range of 5.5 to 7.5 times gross collected rents. Some will compute ...More
February 1, 2004 Nicholas Malagisi
Posted in Articles,
Finance
Choosing and Working With Your Lender
Few partnerships are more important to business owners than those with their lending institutions and the lenders who represent them. When the partnership is working well, it’s the proverbial win-win for both. When it’s not, it’s a painful pairing. So how does the astute ...More
November 1, 2003 Scott Weissmann
Posted in Articles,
Finance
In The Shadow Of $
“Business? It’s quite simple. It’s other people’s money.”—ALEXANDRE DUMAS THE YOUNGER “Money is the seed of money, and the first guinea is sometimes more difficult to acquire than the second million.”—JEAN JACQUES ROUSSEAU We like to believe we have appreciation for the ...More
November 1, 2003 Teri L. Lanza
Posted in Articles,
Finance
Loan Types And Lending Options
Just as there are many types of self-storage facilities, there is a diversity of financing options available in the capital markets. Some self-storage owners seek floating rate financing, while others prefer fixed-rate loans. Some ownerdevelopers want construction financing ...More
November 1, 2003 Eric Snyder and Jim Davies
Posted in Articles,
Finance
The Self-Storage Joint Venture
Recent stock market meltdowns have caused investors many sleepless nights. Overnight, they find an earthquake in their IRA account. Years of saving for retirement are wiped out without warning. Yet the self-storage investment remains virtually undisturbed by perturbations ...More
November 1, 2003 Jim Oakley
Posted in Articles,
Development,
Finance
Refinancing $elf-$torage
The adage goes, “Take Advantage When Opportunity Knocks.” I can easily say opportunity has been knocking. This summer, the interest rates reached the lowest levels in the last 45 Years (Before Self-Storage became a recognized industry). Fixed-rate mortgages, which are based ...More
November 1, 2003 Neal Gussis
Posted in Articles,
Finance
Interest-Rate Trends
If you’re a self-storage owner, here’s a question you may not be answering correctly: What is my largest expense item? The answer is typically either payroll or property taxes. In actuality, for many owners, it is interest expense. Here’s the point: Interest expense and ...More
November 1, 2003 Bill Walton
Posted in Articles,
Finance
