Property Manager · Fresno, CA · Member since 2017 · 37 posts · 24 votes
I have a couple markets where I am struggling to get bridge loans for BRRRR short term rentals. It's due to the "Rural" index (I can't quite remember what it's called, one of the lenders showed me). One of the markets I have a #1 performing STR for guest count so I can prove that I know what I am doing. Does anyone have recommendation on lenders? The other market is also "Rural" but quite underdeveloped from a STR perspective but still data on other properties. Appreciate the guidance!
Sarah, rural properties can definitely be challenging when it comes to traditional bridge financing, especially when lenders have restrictions based on location and comparable sales. The fact that you already have a top-performing STR is a strong point in your favor.
I specialize in business funding, and depending on your financial profile and business revenue, there may be alternative options worth exploring, including business lines of credit, 0% APR business credit cards, business loans, and revenue-based funding to help with renovation costs or working capital.
These wouldn’t necessarily replace a property-backed bridge loan, but they could provide additional flexibility. What states are these properties located in? I’d be interested in learning more about the deals and seeing what options might make sense.
Hi Sarah! I saw your post about the challenges getting bridge financing for rural STR properties near the national parks in Central California.
I work with several private-money and investor lending partners, including CV3 Financial, Seattle Funding Group, and others that offer bridge and DSCR financing. Rural properties can definitely be tricky because each lender has different guidelines, but there may be some options worth exploring.
One thing I’ve learned is that not every lender defines rural the same way. Some rely on the appraisal, while others look at population, location, or comparable sales.
If you’re open to sharing the general areas or ZIP codes, along with approximate purchase prices and rehab budgets, I’d be happy to run the scenarios by a few lending partners to see who might consider them.
Your STR performance history could also be helpful when looking at long-term DSCR financing after renovations.