What are short-term rental loans?
With short-term rentals and vacation rentals becoming increasingly popular, a solution to help scale is necessary. Short-term rentals are typically furnished homes or apartments rented out for days to weeks. For real estate investors these investments can be quite lucrative. With the ever-growing popularity of Air BNB and VRBO, investors need a funding solution that allows them to diversify and grow their investment property portfolio. Bridge loans can be used to acquire and stabilize your STR, and a cash out refinance can be used to exit into longer term, lower interest debt.
How do you get a short-term rental loan?
Whether you are acquiring a new property or would like to use a renovation loan for repairs and updates, loans on short-term rentals can come in many forms. Using a hard money loan to acquire the property can give you an advantage in negotiations and be used as a bridge during renovations. Ultimately a short-term rental loan would give an investor a long-term solution at a lower cost. Webster Capital can help every step of the way.
Getting started with short-term rental loans
Webster Capital is a leading provider of investment property loans and rental property loans for your portfolio, including short-term rentals. We underwrite the loans based on the value of the underlying asset and its associated cash flows, not credit or personal income, making the process quick and straightforward.
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No personal income requirements or debt to income calculations. We base our valuations on the income the property produces and see how it stacks up against comparable properties.
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Low documentation requirements. All of our loan products require virtually no paperwork other than that provided by your attorney.
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Scalable. Using other people's money is the key to growing your investment property portfolio. We are happy to write investment property loans on as many properties as you can buy! Using a cash-out refinance strategy can be a driving factor to your success.
If you are interested in finding out more about short-term rental loans, contact us today or apply online.