Jerry Jones CPA
Wouldn’t it be nice to have a CPA that you deal directly with, that knows the Self Storage business, that works in all 50 states and is there for you when you need him?
Following construction and 2 years of operating my self storage facility, I had become uneasy with my previous accountant’s fees and related IRS filings. My search for alternatives led me to Jerry. His knowledge of the storage business resulted in significant savings that had not been taken advantage of by my previous accountant. Now I can feel comfortable by giving Jerry a call on small considerations, as well as major financial planning. For business or personal financing I highly recommend Jerry to all of my customers and friends.
Tim Farrell
Anchor Storage, LLC, Nevada

Saving Self-Storage Construction Loans From Extinction: Considering Loan Structure, Source and Viability

By Devin Huber

In the past four years, it seems loans for construction financing have been on the edge of extinction. Such loans became unpopular due to the recession and the sudden over abundance of self-storage properties in certain markets, many of which have had lower than projected rents and disappointing lease-up velocity.

Between 2007 and 2011, it was not uncommon to see lease-up plateauing between 40 percent and 60 percent for some newly constructed properties. Coupled with leverage that, in some cases, exceeded 80 percent, plus the high cost of land, many lenders ended up being responsible for distressed loans and real estate-owned properties that sold well below the original loan amount. This made lenders leery of giving construction loans. Today, this once-flourishing loan type can certainly be considered an endangered species.

Fortunately, in the past year, there has been a glimmer of hope for those seeking to secure construction loans for self-storage. There are lenders familiar with the storage industry who know that just because one market is overbuilt or has had bad luck doesn’t mean another market isn’t in need of new supply. By knowing where and how to apply for a loan, as well as some of the particular considerations for self-storage construction lending, you can take these loans off the endangered-species list.

Discover the Loans Available in Self Storage

by Noel Cain

 

Authored by The BSC Group, a provider of financial and loan advisory, mortgage brokerage and loan workout solutions to commercial real estate property owners and investors, with a special emphasis on the self-storage market.

If you are ready to use debt to purchase a new facility, or refinance the debt on an existing self-storage property, now might be the time to review the loan options available to you. The following overview will summarize the alternatives as well as their pros and cons.

Avoid legal and accounting logjams

by Mark Lusky

As with preventive medicine, practicing preventive law and accounting can spare self-storage owners many hours of headaches and heartaches--not to mention dollars. Costs of litigating or defending a legal claim or tax issue can skyrocket quickly.

It doesn't take many motions or other meanderings by the other side of a dispute to make costs soar. So, by far the best protection in the self-storage industry is to put in place a solid legal and accounting infrastructure before you need to defend it. Following are suggestions to help succeed:

1. Spare no expense to develop/update good contracts, develop legally-sound policies, and establish an accounting infrastructure fully defensible to the IRS. One of the biggest reasons businesses fail is a penny-wise-pound-foolish mentality. While much information can be accessed economically through the industry and via internet research, it's wise to have trusted advisors who can make sure everything is airtight-or as close as reasonably possible. And make sure these advisors are up to speed on the latest legal and financial regulations and rulings that may impact today's rules of engagement tomorrow and beyond. Most important, periodically review everything with legal and accounting/financial advisors in the same room, to be sure everything is buttoned down in both arenas. In the long run, you'll likely save money not going back and forth between lawyers and accountants who often suggest seeking input from one another.

Self-storage tax changes for 2013: How to reliably discover what you need to know

by Mark Lusky

When it comes to tax advice, consider the adage, "Don't take too much advice; you could wind up making other people's mistakes." Too often, tha''s what happens when entrepreneurs, self-storage owners/operators included, look solely to the Internet, media reports, or other "single source" for information.

This is a huge reason to have truly trusted advisors--people and organizations that can serve as the penultimate arbiter of what is and isn't relevant and right for your particular situation. That said, researching the Internet and/or media reports is a great way to start gathering information and intel. It can prompt awareness of good questions to ask, strategies to consider, tactics to avoid, and the like. Here are some tips to help ensure getting the right information for your situation:

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