How to Understand a Self Storage Financial Statement | Webinar Recap

How to understand a self storage financial statement webinar

How to Understand a Self Storage Financial Statement - Webinar Description

Having a thorough understanding of a company’s financial health is essential for those looking to invest, start their own business, or manage a company. This knowledge allows investors to identify profitable opportunities and minimize risk, and enables professionals at all levels to make informed business decisions.
 

Date: January 19, 2023               Length: 01:01:42

Topics and Questions Discussed

00:00:00 Intro
00:00:15 What does the SBOA do?
|00:03:03 Who is Ian Burnstein?
00:05:00 What are the most important items to a lender when looking at a financial statement?
00:06:12 Understanding loan adjustments: interest, appreciation/depreciation, amortization, etc.
00:07:38 Challenges with lenders when buying a self-storage business
00:09:25 2023 Cap rate trends
00:14:07 What is the difference between recourse and nonrecourse debt?
00:18:03 What are the most important items to a broker when reviewing a financial statement?
00:22:25 What might be a red flag to a broker or lender for a self-storage business deal?
00:24:58 Property taxes for self-storage facilities
00:30:45 Should I challenge my property tax?
00:32:15 Cash vs. Accrual
00:35:19 How to estimate cost per square foot when buying a self-storage business
00:37:17 If a property is owned by a corporation, does that affect a recourse loan?
00:39:35 Protecting your assets with an LLC, single-purpose entity
00:41:35 Variable rate loans, floating rate debt, variable rate debt, interest rate volatility, and prohibitive hedging costs in 2023
00:45:31 Expense ratios to use when buying a self-storage property
00:50:19 Underwriting assumptions related to P&L for a value-add property
00:54:10 Using comps to determine the value of a self-storage property 00:59:20 Closing comments, upcoming SBOA events

Important Links

How to Understand a Self Storage Financial Statement - Hosts & Panelists

Adam Karnes
Vice President
The BSC Group

Jane Sauls, CCIM
Co-owner, Sauls Storage Group
Broker, Commercial Realty Services of West GA

R.K. Kliebenstein
Founder
Coast-to-Coast Realty Advisors, LLC

Ian Burnstein
President & Co-Founder
SBOA

Self Storage Industry Savings Program

Jessica Johnson
Vice President
SBOA

Enjoy this article and video? Share both on social media by clicking below.
Facebook
Twitter
LinkedIn
Scroll to Top