How to Understand a Self Storage Financial Statement | Webinar Recap

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