Flexible loan programs for vacation rental properties:
- Stabilized or unstabilized properties
- 2 or 3-year terms, full-term interest only available
- Competitive interest rates
- Purchase, refinance, construction and/or stabilization
- Fully prepayable, subject to sliding fee structure
- Single property loans from $150,000 up to $3 million
- Portfolio loans also available
EXPERTISE
Members of our senior leadership team have decades of experience managing multiple types of projects, both from a lender and operator perspective.
ALIGNMENT
Genesis Capital features an in-house construction team that understands how important cash management is to a project. This group plays an integral part in the upfront underwriting process through project completion, creating a seamless experience for clients.
RELIABILITY
You can count on us. Unparalleled funding and construction draw execution. Our high-touch, personalized service approach means your needs are taken care of every step of the way.
Vacation Rental Properties
GENERAL LENDING PARAMETERS (AS OF JANUARY 2023)
For experienced Short-Term Vacation Rental (STVR) Operators that have been in business for at least two years or utilize an experienced STVR manager. Pricing subject to underwriting and market conditions.
| PROPERTY TYPES |
Single Family Residential (SFR) properties consisting of 1-4 units and select Multifamily properties. |
| UNDERWRITING & GUARANTY STRUCTURE |
Loan and guaranty structure customized to sponsor/project 2 or 3-year term: LTV: up to 70% Min DSCR 1.3x |
| LOAN PURPOSE | Acquisition, renovation, construction, and stabilization of vacation rental properties. |
| COLLATERAL | First Deed of Trust and Assignment of Rents on acceptable property types. No subordinate financing permitted without written consent. |
| LOAN AMOUNTS | SFR portfolios & select Multifamily projects: project specific Individual SFR property: $150,000 to $3 million |
| TERMS & REPAYMENT | Interest only rental loans, subject to limited prepayment penalties: 2-year term: 2/1 fee structure 3-year term: 3/2/1 fee structure |
| LEGAL USE RESTRICTION | Underwriting/Legal must include determination that short-term vacation rentals are a legal use in the collateral property’s municipality. |
| FINANCIAL COVENANTS | Loans will likely include minimum debt service coverage ratio (DSCR) covenants at levels and cadence to-be-determined during underwriting. For loans in the stabilization period, Genesis may establish periodic lease-up hurdles. |
In general, Genesis does not require the borrower pay taxes and insurance into an escrow account. However, there may be certain circumstances where Genesis may require a Loan Administrative Reserve or a Deferred Maintenance Reserve
