Short Term Loans
Ready to get in on the short-term rental market or want to increase an existing one portfolio? It’s never been easier to accomplish with a BRRR short-term rental loan.
The BRRR suite of short-term rental loans is based on our DSCR (debt service coverage ratio) model.
This means that even though many lenders haven’t recognized the potential of this valuable real estate procurement, we’re ideally placed to help you reach your investment goals. These financial agreements are typically over a much shorter term than a traditional mortgage, spanning anything from 1-5 years or, in some situations, longer. We lend at up to a 75% LTV ratio and can finance from $75,000 to $2 million or more. You’ll put down a minimum of a 25% deposit and pay an agreed interest rate over the lifespan of the loan.
Because these loans are secured on the asset itself and the potential income, your credit score isn’t the be-all and end-all for eligibility. However, for the best chance of your loan application being accepted, we’d like it to be at 620 or higher. But do have a discussion with us if yours is lower. Because we can tailor our agreements to individual circumstances, we still might be able to help.
How Short-Term Rental Loans Work
Short-term rentals tend to bring in higher rewards than their longer-term cousins. Therefore, you can expect to be able to pay off the loan over a much shorter period. The first step is to research the area you’d like to buy in. Once you’ve carried out your due diligence and selected a property, then it’s time for us to get into the nitty-gritty of the numbers.
We’ll ask for the details of the property, its value, and assess its short-term rental potential. Then, in a very similar manner to our DSCR loans, we’ll determine a ratio by dividing the potential income (minus expenses) by the repayment amount.
Once again, because the loan is based on the property value and yield, rather than anything to do with your personal income and net worth, the administration surrounding the process is pretty simple. We don’t need to see any tax returns, proof of income, employment validation… There are just some simple legalities to be followed, a bit of the inevitable paperwork and, once that’s done, means that we can close out the deal and get the money to you in no more than 28 days (often less).
Ready to get started?
Let’s do this. The next step starts here. Give us a call or email to get a no obligation quote for your next project or just send us a message and a BRRRR professional will reach out to you.
Buy, Rehab, Rent, Refinance, & Repeat. A nationwide direct lender to real estate investors. If you have a project that needs to be funded, you’ve come to the right place.