The financial models those groups use are customized to the philosophies of the group because having a one-size-fits-all model creates too many options.Some groups have lots of fees, waterfall returns, and even different waterfall returns depending on how much a person invests.

It raises all rents in poor areas, while not providing enough for rich areas.

And maybe lose other customers/sales. 

Poorly built, poorly maintained, but free housing.

I see it all the time, because the call center lenders that offer that usually have a relatively poor pull through rate, they just try to get as many people through the door as they can, but a good LO should be finding the hurdles up front, understanding the client's goals and overall picture, and offering them rates and terms that they can actually deliver on.  

Scope of improvements included:Full interior updates: new flooring, interior paint, lighting, granite countertops, and updated appliancesAddition of high-demand short-term rental amenities: game rooms, custom bunk beds, hot tubs, swimming pools, and putting greensProfessional interior design and full furnishing to optimize guest experience and nightly ratesThese improvements were executed with the objective of maximizing long-term performance, increasing appraised value, and creating differentiated offerings within the Hot Springs vacation rental market.Refinance & Financial PerformanceUpon completion of renovations, we partnered with a local commercial lender to refinance the portfolio.Combined appraised value (ARV): $2,601,000Approved loan amount: $2,200,000 (cash-out refinance)After retiring the hard money loan, the transaction resulted in a net cash return of $300,470.51, which represents $118,181.09 more than our original down payment—effectively removing all invested capital from the project.TimelineThe full cycle—from acquisition through renovation and refinance—was completed in 174 days.OutcomeThe result is a portfolio of three fully renovated, amenity-rich lakefront properties, each now positioned to perform as premium short-term rentals with strong long-term appreciation potential.

Mistakes are inevitable in real estate, whether it’s a missed repair in underwriting, a contractor who walks off with a deposit, or poorly executed work.

Can customize for buyer too.

Many sponsors are equity-rich but cash-poor, and equity partners are definitely holding the leverage.

Yes, at the very least, a first step is to immediately contact the booking site, talk to customer service and find out what your options are.