Joe DownsCEO & Co-Founder, Belrose Storage Group. Founder, Storage Moguls.

The Best Loan Deal for Self Storage

6 Feb 2026 · 1 min

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In this video, Joe Downs explains why SBA-style loans are the optimal financing choice for self‑storage acquisitions. He highlights four key advantages: a low 10% down payment compared to the 25‑35% required by conventional loans, which preserves capital for other investments or property improvements; a 25‑year amortization schedule that reduces monthly payments and maximizes cash flow; the availability of fixed‑rate options that protect borrowers from rising interest rates; and the overall flexibility these terms provide to keep more liquidity on hand. By leveraging these loan features, investors can improve returns, maintain financial stability, and allocate resources more efficiently across their portfolios.

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And that brings us to why these loans are perfect for self-storage. The most compelling reason is the low down payment, of course, of only 10%. Conventional loans offer 25% to 30% down. A couple of years ago, 35% down, meaning the SBA loan allows you to keep more capital liquid or even do the deal. Sometimes this preserved capital can be used for other investments or for necessary property improvements. And closing costs. So the 25-year amortization period is another critical factor for maximizing cash flow. A longer amortization means lower monthly payments, which directly increases your cash flow. The availability of fixed-rate options also provides stability and protection against rising interest rates.