Minico2First and foremost, a loan package has to fit the lending institution’s appetite. This means it must appeal to the initial underwriter and those that follow. It will need to pass a board’s approval for the final lending authority.

    A lender looks for a few key items. Good credit, debt service coverage ratio, a strong NOI (net operating income) and a borrower with a seasoned resume. That resume speaks very loudly about your experience. What does all this mean? They want to be sure you will make your monthly mortgage payment.

    What do underwriters look for? They want information. Show them the facility you want to buy is a clean, well kept property. Take pictures of the office, inside and out, show the buildings, long and close up shots. Doors, windows, roofs and interior along with exterior. Now, do these pictures appeal to you? If they don’t, will they appeal to the underwriter? Make sure your photos show clean areas everywhere. Pick up trash, weed flower beds, dump the trash.

    What else? They are going to want financials with three years of tax returns, profit and loss statements including a current and up to date P&L. They want a current rent roll. Not hand written but from the software program being used. A business plan for the next five years that includes projected income and expenses along with why you are forecasting these numbers.

    A borrower is required to use his credit score just to let the lender know that you are credit worthy, however, the facility income will be the ultimate measuring tool in rate and term. Now spend some time on your business resume. This is where you sell yourself as that responsible business person. The underwriter does not know you, give them an opportunity to learn about you. Your resume will speak volumes. It will tell the underwriter who you are and what you have accomplished.

    To acquire financing today does take more time and there are more hoops to jump through. Become familiar with this process, have patience and submit an appealing loan package that meets your lender’s need.

    About Kevin Rollings & Self-Storage Facility Management

    Kevin R. Rollings is a Teacher, an Owner and an Operations Manager for Self-Storage Facilities! Kevin has over 25 years rental experience at various levels of management and ownership in the rental niche.

    Kevin was the regional supervisor for Scott Meyers, the past owner of Alcatraz Storage’s in the Indianapolis Greater Areas. Kevin was often a speaker at Scott Meyer’s Self Storage Academy as the key speaker for Management 101 and for Self Storage Auctions. His wisdom and excitement for the industry lead Kevin to purchase Alcatraz Storage in Brownsburg, Indiana, moving him from a once manager to a current owner!

    For more information, please visit:

    Summer Slash



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