So you have finally found a facility that you think is “the one,” but how much is the facility worth? Your next step is to figure this out and to determine if there is enough potential for ownership. It is essential to know the current value of the facility and what the potential future value holds.

As lenders, we have seen many facilities where the current owners are not engaged or interested in making the business all that it could be. Steer clear of making this mistake. This is a business that can be very profitable with effort, time and due diligence.

Below are some terms that will help you determine a facility‘s worth, as well as determine whether or not it is worth investing in.

Occupancy

Revenue

Property Taxes

Other Income

Rent Roll

Self Storage Association

Inspections

Unmanned

Deal Example

In Closing

Remember, there are experts that can help you with your analysis.