Most lenders are going to want to see a few big things from the ownership group. 1) The borrower will be the enitity (LLC, S-Corp, etc) and any owner with usually 20% or more of ownership in the entity will be expected to guaranty the loan, 2) We'll want to see some experience doing similar projects from at least one of the main owners, 3) We'll want to see bank statements showing liquidity enough to cover the intial cash injection (down payment), the closing cost, and some cash in reserve.

Ensure the STR’s projected income comfortably covers new debt, even with conservative occupancy rates, and maintain reserves for market changes or vacancies.

Eventually it becomes second nature.

@Manjari Pandey noted.Yes agree the reservations for April have slowed compared to last year.

I should net a good amount from a house I have for sale and I don’t really want to tap into my reserves right now.

Banks have cheap enough money and most have stabilized their reserves to be able to handle going to open market and getting a reasonable market offer.

Having cash reserves gave me the confidence to move quickly on a great deal without losing sleep over unexpected expenses.

If I go BRRRR I’ll refinance with a standard lender.Assuming we sell for $625k which is the ARV and market analysis I pulled, purchased for $345,500 and have $120k in reserves for rehab cost.

I was the oldest boy so naturally I helped dad with all the renovations.

Distributions are being paid from reserves or out of syndicators own pocket.Syndication B: Sold a deal and achieved a 30% net to LP IRR.