Vetting a Short Term Rental Lender

[Tyler Solomon]

Full Disclosure - I am a lender myself, however I am curious -

What do you all look for in a lender when going to finance an STR?
What attributes are most important to you?
What have been your biggest pain points while trying to finance STR's? 

[Patricia Steiner]

We've found that vacation rental financing has really dried up in the past few months. The lenders who are still doing it are charging some pretty high rates (my clients have 800+ FICOs, liquidity, low DTI) and don't really understand STR ('there is no rent roll or leases'). Two years of financials on the property has also been problematic for some properties that have a shorter history than that but have significant NOI.

So, a long way of saying: I want a STR lender who I don't need to train on STR, who is in the business today and will be in it tomorrow. Business awaits that lender...