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

Why Lenders Won’t Fund Your Storage Facility Deal

26 May 2026 · 1 min

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0:41

In this segment, the speaker warns that buyers or operators who cannot demonstrate a solid understanding of the self‑storage industry will struggle to close a deal because lenders are unlikely to provide financing. Entering a purchase contract with such an unqualified party ties up the asset, erodes the seller’s confidence, wastes time, and ultimately returns the property to the market with a negative stigma—raising questions about why it didn’t sell previously.

Chapters

If they're not demonstrating they even understand the industry, how are they going to show up and close? What lender is actually going to lend them money? Well, yeah. You tie up the asset by going under contract with someone who doesn't really look like they have the ability to close, and everybody loses, right? The seller loses, you lose, your seller— the seller loses faith in you. Yeah, we wasted time. Wasted time, right. And now you're back on the market with a stigma. Why didn't it sell before? You know. That can happen. Yeah. Yeah. Yeah.