I am interested in building a storage warehouse where people can store their belongings in individual storage units. The land costs approximately $100,000 and the construction costs approximately $750,000. What kind of loan should I get and how much money would I need to put down initially?
This is a discussion you should have with your commercial lender. Policies and products offered vary from bank to bank. If you qualify, an SBA (Small Business Administration) loan may work best. The loan terms may also depend on where the property is located.
The more you invest yourself up front, the more equity you have, the less risk the lender has and your borrowing costs will be lower. Again, what your lender requires you to put down can vary on the loan product and your qualifications. Those qualifications include your relationship with the bank and your credit.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
This is a discussion you should have with your commercial lender. Policies and products offered vary from bank to bank. If you qualify, an SBA (Small Business Administration) loan may work best. The loan terms may also depend on where the property is located. 