Running into issues with funding the expansion of my STR business

[Jonas Harper]

Last year my partners and I purchased 3 cabins in TN using 2nd home loans and we have done quite well so far.  We are in the process of planning and designing a glamping site on 10 acres with a target launch of Spring 2023.  

So what's the problem right!? Well… Financing… We are looking to take out HELOCs on 2 of our properties that have a decent amount of equity, which should cover us for Phase 1 of the glamping site. However, we currently don't have financing lined up to complete the buildout. As a new business, we are having trouble with SBA, construction loans, and other lending options. In addition to the glampsite, we are looking to expand our cabin portfolio, but due to high property valuations we don't have the cash to be competitive in our offers and don't have the liquidity to cover 20%+ down for DSCR or other types of financing.

We’ve spoken with several lenders and are approaching many others, but we are starting to feel a bit stuck.  We’ve discussed partnering with others, but we currently don’t have friends, family, or people in our network that are interested (or have the means) to do so.

Any and all tips/suggestions are greatly appreciated.