Short Term Rental Financing

[Gary Davis]

Hi! I am trying to find a banker/broker that finances short term rentals. I'm located in California if that matters, but buying in Texas. Does anyone have a good referral? I'm going to need to include the rental income in order to qualify. Thanks!

[Robin Simon]

Quote from @Michael Baum:

This is always an interesting questions. For the lenders, @Daniel Christopher, @Robin Simon. Do you guys just take the latest annual revenue of an existing STR plus the viability of the borrower? Do you not take into account that they may have never done a STR before? That all the reviews that have been built up go away for the most part and they have to start over.

Essentially any property someone new buys will be starting as a new rental so I figured the current revenue will also drop. 

Our guidelines are unique in that we separate borrowers into 2 buckets: 1) Professional Owners of STRs and 2) Others. For Professional Owners of STRs which we define as having a successful STR in the same market (12-month history) or 3+ successful STRs nationwide, we will underwrite to the projections generated from AirDNA. Essentially, the idea is that if someone knows what they are doing and has economies of scale/experienced/rep on the platform, they should be able to hit the ground running and meet or beat AirDNA