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Are you ready to expand your short-term rental portfolio but feeling stuck when it comes to funding the next deal? In this episode of the LFG Lending podcast, we sat down with Annette Grant, short-term rental owner and co-founder of Thanks for Visiting, to explore real-world financing strategies for hosts and investors.
Whether you’re a seasoned investor or launching your first Airbnb, this guide breaks down different ways to access capital, from home equity lines of credit to private lending partners—so you don’t miss out on the next great opportunity.
Key Takeaways for Real Estate Investors:
Tap Into Your Home’s Equity with a HELOC
One of the most overlooked ways to access funding is through a Home Equity Line of Credit (HELOC) on your primary residence. Many homeowners have untapped equity from years of appreciation. While LFG Lending doesn’t offer HELOCs, you can reach out to your local credit union or current bank to start the process.
Pro Tip: In Ohio, some lenders offer up to 100% loan-to-value on HELOCs. Nationally, it’s usually 90-95%.
Don’t Overlook a Cash-Out Refinance
Still holding on to that 2.75% mortgage? We get it. But don’t let a low interest rate stop you from expanding. A cash-out refinance on your investment property could unlock tens of thousands in funding for your next deal.
Ask yourself: What could I do with $50,000 right now? Would the potential cash flow outweigh the higher rate?
Consider Seller Financing
If you’re eyeing a deal and short on funds, seller financing could be a game-changer. This arrangement lets you negotiate directly with the seller-terms, rate, down payment, and more-without going through a traditional lender.
There’s no one-size-fits-all structure. Seller financing is flexible, and if the seller’s open to it, you might even score a no-money-down deal.
Bring in a Private Lending Partner
Don’t have all the capital? You’re not alone. Many successful investors leverage private money lenders-friends, family, or trusted connections-who offer short-term funding in exchange for interest (not equity). This can be done with a promissory note, avoiding long-term entanglements.
Start with people who already trust you. Build your reputation. A solid track record goes a long way.
Before You Fund the Deal – Set Your Goals
At LFG Lending, we always start with one question: What are your long-term goals as a real estate investor? Whether it’s replacing your W2 income in five years or buying one property a year for the next ten, your strategy should be built around your unique goals and risk tolerance.
The number of doors doesn’t matter. What matters is how those doors align with your life plan.
Work Backwards from Your Goal with the Right Lending Partner
Even if the timing isn’t right today, it’s smart to get the conversation started. Your financial picture could look very different in six months-new job, home appreciation, higher savings. Let’s plan ahead so you’re ready when the perfect property hits the market.
Ready to Talk Strategy?
Book a free consultation with LFG Lending today. We’ll walk you through your options, crunch the numbers, and help you map out a clear path toward your next investment property.