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Self Storage Income

322. Self Storage Financing for Beginners: How to Fund Your Next Deal (Fast)

Self Storage Income

AJ Osborne

How To, Investing, Business, Entrepreneurship, Education

4.9591 Ratings

🗓️ 11 November 2025

⏱️ 54 minutes

🧾️ Download transcript

Summary

You’ve found a self storage deal, but to get to the closing table, you’re also going to need a lender. For many new investors, self storage financing is the most intimidating part of the process, but in this episode, Conner and George will share everything you need to know to get your first or next self storage facility fully funded.

 

The truth is that self storage is one of the least-defaulting asset classes today, and with one simple but crucial mindset shift, you’ll stop feeling like you’re “asking for money” and start confidently presenting attractive opportunities to banks, partners, and investors. You’ll learn how to speak the lender’s language and the keys to getting approved for a self storage loan.

 

We’ll also walk you through a checklist of essential documents, tips for analyzing self storage deals, and resources that will connect you with the best lenders. Plus, we’ll show you how to use debt service coverage ratio (DSCR) as a powerful negotiation tool and how to craft a business plan that gives lenders the confidence to partner with you.



What you’ll learn in today’s show:

 

  • How to find a great lender for your first or next self storage deal
  • Using debt service coverage ratio (DSCR) as a powerful negotiation tool
  • Crafting a business plan that makes your self storage facility stand out
  • Essential documents to have ready when working with a lender
  • Why you should always talk to multiple lenders when funding a deal
  • The massive advantage self storage has over other asset classes

 

Learn More About Feasibility Studies - https://www.selfstorageincome.com/feasibility 

Email info@selfstorageincome.com to Be Connected to a Lender

Self Storage Analysis 101: How to Underwrite a Self Storage Facility - https://www.youtube.com/watch?v=y4u4-OJbhnA 

Live Oak Bank - https://www.liveoak.bank/ 

Transcript

Click on a timestamp to play from that location

0:00.0

We're talking lenders. What do they want to see? How to talk to them? The ins and outs, so to speak. They're really in ways partners with you on this deal. Like, they want to see the deal succeed. Because if the deal succeeds, then they're going to keep getting loan payments and then collecting interest, and then they're not going to have to run the storage facility themselves. There's so much dirty work involved in cold calling and underwriting deals and in talking to all these banks, negotiating with sellers, that people just don't want to do it.

0:25.6

But they still want to be into something that they can put their money and then get a return on it.

0:29.6

And banks think the same way with that. That's why banks exist for an opportunity to lend money.

0:41.1

Welcome to opportunity to lend money. Welcome back, everybody, to the Self Storage Income podcast.

0:45.2

Me and George hanging out today.

0:46.9

George, how are you doing, man?

0:48.4

Doing good, Connor.

0:49.2

Excited to be here, ready to talk about another great episode today.

0:52.1

Yes.

0:52.8

Now, it's a good topic, man,

0:54.8

for all you guys. Obviously, I hope you saw the title here, but if you didn't, you know,

0:59.5

we're talking lenders. We're talking lenders. You know, what do they want to see, how to talk to them,

1:03.7

the ins and outs, so to speak, of that coordination with lenders. It's extremely important that

1:10.1

you guys are set up and prepared for success

1:12.5

and know what to expect when walking in to have those conversations with lenders because

1:18.6

it's not just going in and fly by the seat of your pants thing. You want to go in, you want to be

1:23.2

organized, you want to look professional, you want to be professional, you want to have your ducks

1:27.4

in a row.

1:28.2

Because if you don't, good luck. Yeah, 100%. I think especially too for people who maybe you're on here

1:34.5

looking for your first storage facility, like working with a lender can be really intimidating.

1:39.1

And so the hope is that, you know, going through this, you can kind of break down some of those

1:43.0

limiting beliefs for you to be

...

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