The good old days of scratching feasibility on the back of an envelope are gone. Yesterday's answers are not good enough for today's lenders. If you don't show profitability simply and clearly at the outset of your self-storage project, you might not get another chance to do so.
Lenders review several packages weekly and pick only the best.
You can't go back and change the numbers once you have been turned down without losing credibility. An appraisal will prove a facility's worth once it's completed, but you better have a financial business plan to prove how you will make payments during rent-up. The transition between development and occupancy is critical as a project is most vulnerable to negative cash flow during this period. Occupancy is increasing while interest expense is needed. Loan payments are required every month, and bankers need assurance that money is on hand to meet them.