| SELF STORAGE BUSINESS VALUATION
ESTIMATOR |
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| Enter Desired Selling Price |
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Enter the desired selling price here |
| Down Payment |
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25% is the minimum amount typically desired by lenders
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| Amount Financed |
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This amount is the selling price less the down payment
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| Interest Rate |
6.75% |
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This is a typical interest rate |
| Loan Term in Years |
25 |
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This is a typical loan term |
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| Rent Income |
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Enter the annual rent income here |
| Late Fee Income |
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Enter the annual late fee income here |
| Merchandise Sales Income |
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Enter the annual merchandise sales here |
| TOTAL REVENUES |
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| Advertising Expense |
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Enter annual advertising here (yellow pages and such)
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| Employee Expense |
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Enter annual payroll and employee benefits here |
| Insurance Expense |
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Enter annual insurance expense here |
| Maintenance Expense |
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Enter annual maintenance and repairs expense here |
| Other Expense |
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Enter annual expenses which don't fit in any other
category here |
| Property Tax |
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Enter annual property tax here |
| Telephone Expense |
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Enter annual telephone expense here (don't include yellow
pages expense) |
| Utility Expense |
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Enter annual utility expenses here |
| TOTAL EXPENSES |
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| NET CASH FLOW |
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| INTEREST EXPENSE |
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| NET CASH FLOW AFTER INTEREST |
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| PRINCIPAL REDUCTION |
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| NET CASH FLOW AFTER PRINCIPAL & INTEREST PAYMENT |
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| Loan Coverage |
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Loan coverage should be at least 1.20 to qualify for a
bank loan. If your result is less, adjust the selling
price to reach this target. |
| Capitalization Rate |
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Capitalization rates of properties that sell range from 9%
to 12%. If your result is less, adjust the selling
price to reach this range. Buyers demand higher
capitalization rates for smaller properties and lower capitalization rates
for larger properties (over $2,000,000) |
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| WARNING: |
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| The income and expense information above have
been supplied by the user and are dependent upon future events with
respect to industry performance, |
| economic conditions and the ability
of the new owner to effectively
manage the property. The user is
solely responsible for the
accuracy of the
income |
| and expense data presented
above. Prospective purchasers
should perform an independent
review of
financial and operational
matters rather than
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| relying upon
the data presented on this
page. |
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| ©Parker Burns & Co., Inc. 2007-2010 |
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