Finance Your STR Investment with Host Financial

Do you have dreams of investing in a short-term rental (STR) property but don’t know your financing options? Opportunities beyond the traditional bank loan DO exist to help investors like you start building or expand your portfolio of vacation rentals.Adam Windham is the Cofounder and COO of Host Financial, a firm that provides alternative financing and creative capital solutions for STR investors. Today, Adam joins me to discuss the pros and cons of using a conventional mortgage or hard money loan to finance a STR investment and explain what differentiates Host Financial from your other financing options.Adam shares the three factors that determine the interest rate on a Host Financial loan and walks us through the process of securing a loan with his team. Listen in for insight on how Host Financial hedges against potential regulations and learn how to determine the best market for your next STR investment!Topics CoveredThe pros and cons of using a conventional bank loanLoan size based on borrower’s incomeBorrowing power eventually tapped outChallenge for self-employed investorsThe pros and cons of using a hard money loanShort-term (one to three years)Interest rates vary wildly from 7%-12%What differentiates Host Financial from the other optionsQualify deals based on property’s income potentialAll loans fully amortizing over 30 yearsWhere investors can buy property through Host FinancialProperties must be in US at present (plans to expand)Borrower does not have to be US citizenThe three factors that determine interest rateBorrower FICO or credit scoreLevel of income property likely to generateLoan size (maximum approx. $2.5M)Host Financial’s ability to make loans to entitiesKeeps personal borrowing power separateOwner of LLC remains personal guarantorHow to provide income projections for a propertyExperience as operator in given marketAirDNA reportThe process of securing a loan from Host FinancialEnter specs of deal on Host Financial websiteReceive term sheet of options within 48 hoursComplete commercial loan applicationSubmit underwriting documentsAppraisal and close (within 30 days)How Host Financial thinks hedges against regulationsConsider market-rate value for long term rentalLTVs increases if cashflow positive both waysThe trends Adam is seeing based on loan requestsSeasoned investors looking for multifamily financingGrowth in invisible service boutique hotel modelBRR method and master lease with option to buyHow to determine the best markets for STR investmentsHigh gross income relative to low asset pricePigeon Forge/Gatlinburg, TN + Poconos in PAAdam’s advice for aspiring STR property investorsCreate folder in shared drive for underwriting docsDo due diligence (demand, regulatory risk, etc.)Connect with AdamHost FinancialEmail [email protected] Blog on Best Cities for STREmail [email protected] subscribe to the podcast, please use the links belowClick Here to Subscribe via iTunesClick here to Subscribe via Stitcher (Android users)If you like the show, please consider leaving the show a review in iTunesor Stitcher. A couple minutes of your time can help the show immensely! Thanks! Hosted on Acast. See acast.com/privacy for more information.