Short Term Rental Financing

5 Replies

Hello real estate community! I am seeking advice on obtaining financing for an AirBNB property in Northern Michigan. I am interested in either hard money lending and private lending, or a more conventional method. Has anyone used any Michigan lenders for something similar? Thanks!

@Alan Robson hey, add self directed retirement account to your list of funding sources. Get other people to long you some of their long money of a good return. That should open more doors for you.
Originally posted by @Al Williamson :
@Alan Robson hey, add self directed retirement account to your list of funding sources. Get other people to long you some of their long money of a good return.

That should open more doors for you.

How does this normally work? I've never heard of this. Is this peer-to-peer?

Yes, somewhat. Google for your local self-directed IRA company and let them educate you.

I'm not licenced to do so. But if you educate folks, you'll have plenty of private lenders.

Originally posted by @Alan Robson :

Hello real estate community! I am seeking advice on obtaining financing for an AirBNB property in Northern Michigan. I am interested in either hard money lending and private lending, or a more conventional method. Has anyone used any Michigan lenders for something similar? Thanks!

 Not sure why you would go hard money. Does the property need rehab?  I'm guessing it does and then the private lender would be your exit plan.  Conventional lending would only go off of the 1007 and long term rents for the sales comparison.  You need a mortgage broker that will employ an appraiser who will do the extra work of researching short term rentals.

Best of luck

Stephanie