One of the cardinal rules of investing in a self-storage facility is making sure you have your downside protected. To help facilitate this analysis, many buyers and lenders will “stress test” the proposed deal to see if they can survive the “worst case” scenario. In ths Self-Storage University podcast we’re going to explore the correct way to “stress test” a deal and what the key metrics need to prove in order to go forward.

There is around $2 trillion of commercial real estate loans coming due in the next two years, and there’s an anticipated $1 trillion of losses when those loans renew, thanks to the terrible performance of office and retail properties. And most of this financial catastrophe will fall upon regional banks that may well fail and send the entire banking industry into a freefall, similar to what happened in the Texas Savings & Loan crash of 1987. In this Self-Storage University podcast we’re going to explore what the “commercial lending apocalypse” is all about and how to insulate yourself from the potential impact.

Bank interest rates are at the highest level in the past 40 years. But it still doesn’t make sense to buy a storage facility with all-cash. In this Self-Storage University podcast we’re going to discuss why buying properties with 100% cash and no debt is not a winning concept except in certain circumstances.