Help Me With Sign Oregon Banking Document

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AJ Osbourne cashflow to freedom I wanted to talk to you guys real quick about how we financed our facility and some of the more advanced massive methods of financing your storage facility that we like a lot we've done everything from self financing to using big national banks local credit unions to CMBS loans non-recourse we've partnered up with individuals on deals and we've also had third parties finance when looking at financing your storage facility this depends a lot on your personal financial position and also your partner's position in the storage facility are they signing on the loan Docs are they guaranteeing that or are you the general partner that's taking on that liability themselves are you protecting your partners from liability how you structure this will depend on should you go the non-recourse route or the recourse route non-recourse in theory sounds great we would all rather finance everything going on recourse get the bank to take on all the risk and we have nothing but the gains it sounds very very good the problem with non-recourse is the terms are very stringent you are basically renting out that asset from them and they watch it closely and you have to fund the account a lot of that capital flow you have very stringent rules on what you can and can't do with that capital it is simply not yours for a disposal you need to understand the terms of those documents your site assigning inside and out before you do that now if you're guaranteeing the asset the terms were going to be a lot better and way more in your favor because now you're guaranteeing you're gonna pay and they're going to come after you personally if you don't they are more collateral it's safer they don't need to have just that asset underneath now if you have partners that are coming on and they're also gonna guarantee that loan well then they may you may have banks that are a lot more willing to do it once again more collateral if you are not able to sell finance there are banks that specialize in partnering and financing storage deals with you these are wonderful opportunities but one of the downsides to most of these banks like Live Oak bank as well as others is they are very stringent on the locations in which they finance I live in Idaho and lots of them do not want to go to places like Idaho to finance storage facilities their primary looking at first tier markets where they know and they can help you build a storage facility that will be stable and has great upside potential those markets are where they like to be and with good reason they're safer markets to be in then second tier or third tier markets so there are a few directions that you can go to finance yourself storage facility the more liability you take on generally speaking the better the terms of the deals are now the more liability you put on the financing party more stringent those rules are going to be and the more careful you need to be about signing those documents and understanding what you're getting into we've done both non-recourse full recourse and they're great for a lot of different situations I do not think that one method is best we're in Washington Oregon Idaho Nevada different laws different markets large markets small markets and so you really need to work with your local national financing partners to find the best options one way that I would go especially if this is your first time looking at partners that brokerage out your loans to specialty banks for self storage there's there are finance brokers in the self storage world that focus on that asset class those are a great resource when trying to find someone partner to build or acquire your versus I hope that helps [Music] [Music] [Music]