At Optivest, we also have the financial expertise to help you find and manage the need for capital to keep your self storage asset running smoothly, or even acquire more facilities.
Here are 4 ways we can help:
- Provide New Loans or Re-financing options when needed.
- Assist in the purchase of your Bank Notes to help avoid going into “receivership.”
- Provide options for obtaining additional Capital Funding when capital is needed by the self storage owner.
- Provide Loan Modification services when typically a loan exceeds the value of the property. Usually the bank is threatening to foreclose on the property and pursue its rights to remedies against the guarantors.
How do we do this?
We attempt to come up with a solution that matches the current cash flow of the asset to a debt repayment plan in a manner that maximizes shareholder value.
The strategies that we utilize in a debt restructuring are dependent upon a number of factors:
- What is the capital position of the bank?
- Has the asset previously been stabilized or is it a new facility whose lease up stabilization has been delayed?
- What is the net worth of the investors? What is their liquidity?
- Is the loan amount greater than the value of the asset?
Optivest’s financial expert focuses on analytic logic that maximizes shareholder value and/or limits the personal exposure of the investors to guaranteed loans. Our negotiation tactics are non-confrontational and realize that each party must be a beneficiary of the debt restructuring.
Some of the potential outcomes can be:
- Extend loan at new terms – negotiate a lower interest rate in return for the bank receiving their principal repaid.
- Cash purchase of the note/asset from the bank – typically requires a new bank loan and/or a significant capital infusion
- Fund a capital infusion with mezzanine debt.