Creative Financing Strategies for Short-Term Rentals with Parker Borofsky

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Show Summary

In this episode of the Investor Fuel Podcast, host Leo Wehdeking interviews Parker Borofsky, a prominent figure in the real estate industry. Parker shares insights into his dual role as a short-term rental investor and a mortgage team leader, emphasizing the importance of creative financing in today’s market. He discusses the challenges faced in real estate transactions and the significance of building strong relationships within the industry. The conversation highlights strategies for overcoming obstacles and the value of networking for success in real estate investing.

Resources and Links from this show:

• • • Investor Fuel Real Estate Mastermind
    • Investor Machine Real Estate Lead Generation
    • Mike on Facebook
    • Mike on Instagram
    • Mike on LinkedIn
    • Parker Borofsky’s Website
    • Parker Borofsky on Facebook
    • Parker Borofsky on Instagram
    • Parker Borofsky on LinkedIn

  Listen to the Audio Version of this Episode

  Investor Fuel Show Transcript:

  Parker Borofsky (00:00)
  man, yes. So I do that all the time. ⁓ There was recently one, now this wasn’t, this is one where we had to pivot for somebody else. So I had a client come to me. This was actually a primary home of VA loan. ⁓ But that creativity and lending, you know, applies to all loan types. And he was like two weeks away from closing. The loan originator couldn’t figure out his short-term rental income and how to apply it to, and this is for primary home. Having that short-term rental income also affects other property types that you’re buying. So they didn’t know, they didn’t understand how to apply that short-term rental income. he, somebody gave him my name. He came to me and said, can you help? And we did.

  Leo Wehdeking (02:12)
  Hey everyone, welcome to the Investor Fuel Podcast. I’m your host, Leo Wehdeking, and today I am joined by someone I’ve been looking forward to chatting with. Parker Borofsky, am I saying it right? Perfect. Who’s been making serious moves in the real estate industry. Parker, glad to have you here. How’s your day going today?

  Parker Borofsky (02:13)
  Thank

  Perfect.

  Going great. Glad to be here. How’s your day going? ⁓

  Leo Wehdeking (02:36)
  I’m

  actually pretty good. I’m actually excited to have you over here in our show. I think our listeners are really going to take something away from how you’ve been handling your real estate business plus your investor business and at the same time your creative financing advice in business. All right. So let’s dive in. So for people who may not be familiar with your world, can you give us the short version on what’s your main focus?

  these days.

  Parker Borofsky (03:06)
  Yeah, absolutely. So I wear two hats. So my husband and I, own and operate 12 short-term rentals. So that’s my investor hat. And then my ⁓ professional, well, I guess that’s professional. My other professional hat is I am a branch leader of a mortgage team.

  and we finance short-term rentals. We can do regular primary homes too, but majority of our business is for short-term rental ⁓ investors. And so I’ve been focused on that since 2017 and we have everything from regular conventional loans to creative non-QM loans. And our specialty is really figuring out solutions for those with complex situations to get into short-term rental ⁓ investing.

  Leo Wehdeking (03:50)
  All

  right, all right, cool. And Parker, in what markets are you operating in?

  Parker Borofsky (03:55)
  So I’m currently licensed in 44 states. I like to say all the states that matter. Just kidding. So yes, I’m in most of the states working on a few extras. And I did that because a lot of my clients, I started doing it mostly in the Smoky Mountains in Tennessee, Gatlinburg, Pigeon Forge, Superior Bowl. And then I expanded because a lot of my clients started investing in other markets. So I wanted to be able to help them there as well.

  Leo Wehdeking (04:19)
  All right. All right. Love it. Love it. Parker, something that really caught my attention is the way that you’ve been able to integrate your investing business with the creative financing advisor. Can you tell us a little bit more about it? Because that’s actually something that it’s not easy, especially in this climate. So from an expert like you, can you tell the audience ⁓ what it is?

  Parker Borofsky (04:44)
  Yeah.

  Yeah, absolutely. ⁓ being an investor, think myself has really helped me assist others because I can, as a mortgage lender, ⁓ when it comes to meeting guidelines and trying to figure out income and rental income, really having that understanding of what short-term rental income looks like and what the projections should be, it really helps having an in-depth knowledge of that.

  So early on, it helped me relate to

  my clients looking to invest and navigate the guidelines. And then the other part of that, which a lot of people don’t see is taking that information and relaying it to underwriters that may not understand short-term rentals. So it’s being able to explain to them from my own experience, you know, and then taking that to upper management if I had to, to like navigate a guideline. So, you know, that, that belief and passion and it for myself has helped me navigate that for.

  many clients as well.

  Leo Wehdeking (06:33)
  Alright, alright. That’s cool. And Parker, what’s been the key or the recipe? I always like to use the word recipe to keep your business running smoothly.

  Parker Borofsky (06:35)
  you

  good question. So I’ve got an amazing team. know, we’ve grown over the years. I’ve done over $1.1 billion in loan originations for short-term rental investors. ⁓ And that’s allowed me to grow a team. So I have a right-hand loan originator who works with me and then a great support staff behind me. So, you know, things get stressful. These loans are complicated. So we’ve really got an awesome system down.

  We’re not perfect, but we really do try to be. pretty close. And yes.

  Leo Wehdeking (07:16)
  That’s good. That’s good. That’s

  good. All right. Now Parker, every operator, ⁓ every operator that I know has a moment where things got real. All right. Maybe a deal that went sideways for a time that they had to pivot real fast. Do you mind sharing one of those moments?

  Parker Borofsky (07:35)
  man, yes. So I do that all the time. ⁓ There was recently one, now this wasn’t, this is one where we had to pivot for somebody else. So I had a client come to me. This was actually a primary home of VA loan. ⁓ But that creativity and lending, you know, applies to all loan types. And he was like two weeks away from closing. The loan originator couldn’t figure out his short-term rental income and how to apply it to, and this is for primary home.

  Having that short-term rental income also affects other property types that you’re buying. So they didn’t know, they didn’t understand how to apply that short-term rental income. he, somebody gave him my name. He came to me and said, can you help? And we did.

  So we had the appraisal transferred. We got him closed. We actually got him cleared to close in eight days after we had his file. And I was able to navigate that short-term rental income and navigate those guidelines because I understand it. So.

  That’s one example, every day there’s an appraisal that comes in low or maybe the appraiser says it’s rural and this particular loan product doesn’t allow us to do rural. So then we have to flip to a different loan product. Those in the industry know that if there is a challenge or a loan or situation that they can typically count on me to figure it out.

  Leo Wehdeking (09:30)
  All right, that’s actually good. And honestly, I believe that’s what separates the people who just dabble from the ones who stay in the game long term. You know that easy. All right. Now, let me ask you something, Parker. Now, what are you most focused on solving or scaling next?

  Parker Borofsky (09:41)
  and it was.

  So there’s a few things going on in the industry right now that’s exciting. I feel like we’re finally maybe turning a corner on rates. so rates have already fallen this year between July and now they’ve really come down quite a bit. And they’ve fallen over the last couple of years. So now could be a potential great time for those who need to tap into equity to refinance. For those who just want a lower rate, maybe they purchased two years ago and covered rate at 8.5%.

  So we’re focused on helping those clients tap into equity so they can continue to grow their portfolio and also maybe give them little bit of relief on payments to have greater cash flow. So that’s a great opportunity.

  Leo Wehdeking (10:28)
  Alright, alright, that’s big. Now, I know that a lot of people listening are either earlier in their journey or they’re just looking to level up. So I think that they will benefit, you know, hearing this from you coming from you from a person like you. Now when it comes about building relationships and you know growing up your network, what’s made the biggest difference for you?

  Parker Borofsky (10:53)
  So I think, you know, if you are focused on a niche, whether it’s short-term rentals, long-term rentals, multifamily, find the groups that also focus on that. But just real estate investing in general. If you’re not sure what you want to do, join a few of the Facebook groups, listen to some of those conversations, see what people are really doing out there to find your home. You know, where do you feel comfortable? What feels right to you?

  So yeah, so I would say if you surround yourself with those people, you’ll keep going. I, over the years, have joined a couple masterminds. I’m going next week to Arizona for an in-person meeting. And it’s great to see those people once or twice a year and to be able to dig in and talk about real estate. And I can’t really talk about that with my next door neighbor who doesn’t understand short-term rentals. So it’s great to have that network that you can share with. yeah, I highly encourage those out there.

  looking to that. And when it comes to professionals too, so lenders, whether it’s me or another one, make sure you’re working with somebody who understands the business, who you feel comfortable with. And if you feel that the answers they’re not giving you are right, no loan officers, we’re all different, right? So it’s kind of like a doctor or an attorney, ⁓ you know, different levels of loan officers. It’s just how we operate like any profession.

  And there’s some loan officers who are great at just your vanilla primary home loans, knock them out of the park, they do great, that may not want to learn or understand some of these more complex loan products. And then there’s several of us out there that do understand it. So find somebody you’re comfortable with, whether it’s lending, realtor, mentor, that’s what I would suggest.

  Leo Wehdeking (12:18)
  Thank

  Yeah, someone you have a good relationship with. Pretty much. Yeah, because that’s something that over the years, that’s what people want to achieve. Okay, they want to have good relationships with everyone. Not only their mentors, their family, also with their clients. right? All right. Now, before we wrap up,

  Parker, if someone wanted to reach out to you, connect with you. Maybe collaborate or learn more about what you’re doing. What’s the best way for them to reach out to you?

  Parker Borofsky (13:54)
  Absolutely. our website, and that has my contact info on there and also my Calendly link so you can schedule with myself or Aubrey. She’s my right hand fellow. Our website is wealthbuildersmortgage.com. It’s a long one. know. So wealthbuildersmortgage.com. So if you go there, our contact info is there and we’re happy to help. And don’t be afraid if you have a complex situation. That’s what we do.

  Leo Wehdeking (14:18)
  All right, perfect.

  Parker, listen, I really appreciate your time, your story and your perspective. All right. We need more people in this space who are actually doing it the right way. All right. So thanks again for being here on the show. And for those of you that are just tuning in, all right, if you got value from this, just make sure that you’re subscribed. All right. We got more conversations coming with operators just like Parker who are out there building real businesses. We’ll see you on the next episode.

  Bye bye.

  Alright.