How to Fund Short-Term Rentals: Private Lending, DSCR Loans, and Strategies for Scaling Your Portfolio

Real estate investing is about more than finding the right property. You also need the right financing, the right relationships, and the systems to support your growth.

For short-term rental owners, understanding your financing options can open the door to new opportunities. Whether you’re purchasing your first investment property, expanding your portfolio, or exploring a larger commercial property like a boutique hotel, knowing how different lending strategies work can help you make more informed decisions.

In this episode of the Brand & Market Podcast, I sat down with Haydynn Fike, co-founder of Acadia Capital and host of The Art of Connecting, to talk about private lending, DSCR loans, networking, and what it really takes to scale a real estate investment business.

We covered everything from the power of showing up in person to the differences between hard money and DSCR loans, plus some of the biggest misconceptions about getting started in real estate investing.

If you’re looking to grow your short-term rental portfolio, this is a conversation worth paying attention to.

---

The Power of Showing Up: How Relationships Create Real Estate Opportunities

One of my favorite parts of this conversation was hearing how Haydynn built his business through relationships and a willingness to show up, even when he wasn’t entirely sure where those opportunities would lead.

After working in the corporate world, Haydynn began exploring real estate investing. He attended networking events, meetups, and conferences, filling notebooks with everything he needed to learn along the way.

One of the most impactful decisions he made was investing in a mastermind trip to Costa Rica. At the time, the expense was significant compared to his financial situation, but he felt drawn to the opportunity and decided to make it happen.

During that trip, a mentor challenged him to stop talking about starting a real estate meetup in Chattanooga and actually choose a date.

That one decision eventually led to a thriving local meetup that created meaningful relationships, client opportunities, and connections between investors.

But that wasn’t the only example Haydynn shared.

He also told me about meeting a real estate investor and lender at a small landlord luncheon in Chattanooga. They connected briefly, then crossed paths again at a real estate meetup in Knoxville later that evening. That relationship eventually led to an investment partnership and, ultimately, the creation of Acadia Capital.

Think about that for a second. A simple decision to attend a meetup helped set the stage for an entirely new business.

You don’t have to know where every connection will lead. You just have to be willing to show up.

I think this is such an important reminder for short-term rental owners, too. It’s easy to spend all of our time behind a screen, working on our listings, analyzing our numbers, and trying to figure everything out on our own.

But some of the best opportunities can come from conversations with other investors, lenders, operators, and business owners.

Networking isn’t just about collecting contacts or asking what someone can do for you. It’s about building trust, learning from others, and finding ways to provide value.

You never know which conversation might change the trajectory of your business.

---

What Is Acadia Capital, and How Can It Help Short-Term Rental Investors?

Haydynn is the co-founder of Acadia Capital, a private commercial lending company that helps investors and business owners access financing for real estate and other business needs.

During our conversation, he explained that Acadia offers several types of financing, including private lending for fix-and-flip properties and commercial lending for short-term rentals, hotels, shopping centers, and other commercial properties.

Through its lending relationships, Acadia can connect borrowers with potential financing options ranging from local credit unions to larger banks. The company also offers business financing options, including lines of credit and term loans.

For short-term rental investors, this is worth understanding because your financing needs can change as your portfolio grows.

The loan that works for your first rental property may not be the right fit for a property that needs significant renovations, a larger commercial acquisition, or an expansion into a new market.

Rather than assuming every investment should be financed the same way, it’s important to understand the available options and evaluate which one makes sense for your particular deal.

One thing I appreciated about Haydynn’s perspective was that he sees his role as more than simply approving or declining loans. He wants to guide investors through the process and help them understand what it takes to move forward with a viable investment.

That kind of guidance can be especially valuable when you’re navigating financing for the first time.

---

Hard Money Loans vs. DSCR Loans: What’s the Difference?

One of the biggest topics we covered was the difference between hard money loans and DSCR loans.

If you’ve spent any time in the real estate investing world, you’ve probably heard both terms. But understanding how they work and when each might make sense is an important part of building your investment strategy.

Hard Money Loans: Short-Term Financing for Acquisitions and Renovations

Hard money loans are typically short-term loans secured by real estate. They can be useful when an investor needs to acquire a property quickly, renovate it, or bridge the gap before securing longer-term financing.

Haydynn explained that Acadia offers nine-month hard money loans designed to help investors move forward with an acquisition when traditional financing may not be the right fit.

For example, let’s say you find a property with significant potential, but it needs repairs before it can qualify for long-term rental financing.

A short-term loan may help you purchase and improve the property before refinancing into a longer-term loan, assuming the project and borrower qualify.

The trade-off is cost. Hard money financing is generally more expensive than conventional long-term financing, so you need a clear plan for repayment or refinancing before you move forward.

Here are a few things I’d encourage you to consider before pursuing this type of financing:

• How much capital will the acquisition and renovations require?
• Do the projected numbers support the cost of borrowing?
• How long will the project realistically take?
• What is your exit strategy when the loan term ends?

A fast closing can be incredibly valuable, but speed alone doesn’t make a deal profitable.

DSCR Loans: Financing Based on Rental Property Income

DSCR stands for Debt Service Coverage Ratio. These loans evaluate a property’s income relative to its debt obligations rather than relying primarily on the borrower’s personal employment income.

For short-term rental investors, this can be particularly appealing because the financing process may focus on the property’s projected or demonstrated rental performance.

Haydynn explained that DSCR financing can be an option for investors purchasing short-term rentals and other income-producing properties. The lender evaluates the property’s ability to support the proposed debt, using its own underwriting requirements and market analysis.

Unlike a hard money loan, which is generally intended for a shorter-term investment period, a DSCR loan is often used for longer-term rental property financing.

Some potential advantages include:

• Property-focused qualification: The property’s income potential is a key consideration.
• Portfolio growth: Investors may be able to finance multiple properties, subject to lender guidelines and individual qualification.
• Less reliance on personal income documentation: Some DSCR programs don’t require traditional personal income documentation, although requirements vary by lender and loan program.
• Longer-term financing: DSCR loans may provide a way to hold income-producing properties beyond a short acquisition or renovation period.

Of course, there are still requirements to consider. Credit, down payment, reserves, appraisal results, and property performance can all affect approval and loan terms.

For short-term rentals specifically, projected revenue isn’t guaranteed. A property that looks promising on paper still needs realistic market assumptions and a financial plan that accounts for operating expenses and debt obligations.

Which Loan Is Right for Your Investment?

Neither option is automatically better. The right choice depends on the property, your investment strategy, your timeline, and the financing terms available.

Consideration	Hard Money Loan	DSCR Loan
Typical purpose	Short-term acquisition or renovation financing	Longer-term financing for an income-producing property
Primary evaluation	Property, deal structure, borrower, and exit strategy	Property income relative to debt obligations, along with lender requirements
Timeline	Generally shorter term	Typically longer term
Cost and requirements	Often higher borrowing costs and shorter repayment periods	Terms and qualification requirements vary by program
Potential use	Acquiring a property that needs work before refinancing	Purchasing or refinancing a qualifying rental property

My biggest takeaway from this part of the conversation is that you need to understand your financing before you commit to a property.

Don’t wait until you’re under contract to start figuring out how you’re going to fund the deal. Talk with lenders, understand your options, and make sure the numbers work before moving forward.

---

What Should You Have Ready Before Applying for a Loan?

I also asked Haydynn what a first-time investor should have prepared before applying for financing.

His answer was helpful because it’s easy to get excited about finding a property and forget that the lending process requires documentation, organization, and a little preparation.

For the hard money loan process discussed in our conversation, Haydynn outlined several items Acadia Capital requests:

• Signed credit authorization for a soft credit inquiry.
• A driver’s license.
• Articles of organization and an operating agreement for your LLC, when applicable.
• An employer identification number (EIN) for your business.
• A certificate of good standing for the LLC.
• Three months of bank statements to demonstrate available reserves.

Once the initial documentation is reviewed, the lender may issue a term sheet outlining the proposed loan terms.

If you decide to move forward, additional documents may be required, including your closing statement, proof of property insurance, a title commitment, and signed closing documents.

Keep in mind that requirements vary depending on the lender and loan program, so you’ll want to confirm the current checklist directly with your lender.

The point is to be prepared. Having your documents organized can help prevent unnecessary delays when you’re working toward a closing date.

Should You Form an LLC Before Finding a Property?

This is another question I hear from investors who are just getting started: Should you form your LLC first, or should you find a deal first?

Haydynn shared his personal approach, which is to prioritize finding a viable deal before taking on unnecessary business formation expenses.

He explained that investors may sometimes be able to structure a purchase contract to allow assignment to an entity they form later, or potentially to another buyer. However, assignment rights depend on the contract, applicable law, and the transaction, so you shouldn’t assume every contract allows this.

There’s no universal answer for every investor. Liability protection, taxes, lender requirements, insurance, state regulations, and your intended ownership structure all deserve consideration.

My biggest takeaway is that you don’t have to do every possible business setup task before you start looking for opportunities. Understand what you need now, what can wait, and which professionals can help you make the right decisions.

Preparation matters, but preparation shouldn’t become a reason to avoid taking action.

---

The Biggest Myth About Real Estate Investing: You Don’t Need Money

If there’s one misconception I want investors to think carefully about, it’s the idea that you can build a real estate portfolio without needing cash.

Creative financing can absolutely help you acquire properties, but it doesn’t eliminate the need for capital, liquidity, and a realistic understanding of risk.

Haydynn was candid about his own experience of carrying significant debt while having no money in his bank account. He described it as an incredibly stressful position and one he wouldn’t recommend to other investors.

For short-term rental owners, this is especially important because the financial commitment extends well beyond the mortgage payment.

You may need cash for:

• Down payments and closing costs.
• Furniture, renovations, and property setup.
• Insurance, utilities, and ongoing maintenance.
• Cleaning, supplies, and management expenses.
• Unexpected repairs or equipment replacements.
• Periods when bookings or revenue fall below expectations.

Haydynn also discussed the importance of maintaining reserves for loan payments and unexpected expenses.

The specific reserve requirements depend on the lender and loan program, but the principle applies regardless: buying a property is only one part of the financial commitment.

What happens when the air conditioner breaks in July? What if you need a new roof? What if your bookings slow down during a season when you were expecting stronger revenue?

Your property still needs to operate, and your financial obligations don’t disappear just because your revenue changes.

Real estate can be a powerful wealth-building tool, but it still requires thoughtful financial planning.

I believe it’s important to look at real estate as a long-term wealth-building strategy rather than assuming a property will immediately replace your income.

Build your reserves, understand your numbers, and make sure you have a plan for the unexpected.

---

How to Scale Your Short-Term Rental Portfolio Without Outgrowing Your Systems

Finding a good deal is one challenge. Managing multiple properties, transactions, and business relationships is another.

When I asked Haydynn what separates investors who consistently scale from those who plateau, he pointed to two things: investing in systems and investing in talent.

He said something during our conversation that really stuck with me:

“You can only scale to the level of your systems.”

And honestly, I couldn’t agree more.

In the early stages of a business, you can often manage most things yourself. You might track expenses in a spreadsheet, handle guest messages manually, and keep a mental list of everything that needs to get done.

But as your portfolio grows, those informal systems can quickly become bottlenecks.

For short-term rental owners, building the right infrastructure might mean investing in:

• Revenue management tools and market data.
• Guest communication and automation software.
• Standard operating procedures for cleaning and maintenance.
• Bookkeeping and financial reporting systems.
• Reliable team members who can manage specialized responsibilities.

Haydynn shared that his lending business invests thousands of dollars each month in software and prioritizes hiring experienced talent. Those investments allow his team to handle more volume without rebuilding the entire operation every time the business grows.

Now, that doesn’t mean you need expensive software or a large team from day one. It means your tools, people, and processes should evolve with your business.

Maybe that looks like automating repetitive guest communications before adding another property. Maybe it’s improving your financial reporting before expanding into a new market. Or maybe it’s finally bringing in help before your day-to-day workload becomes unsustainable.

The key is to recognize when the systems that got you here won’t necessarily get you to the next level.

Scaling successfully isn’t just about acquiring more properties. It’s about building a business that can support them.

---

Your Personal Brand Can Create Opportunities You Don’t Expect

Another part of our conversation that stood out to me was Haydynn’s perspective on personal branding.

For years, he became known as someone who connected people, found opportunities, and looked for ways to help others. Those relationships eventually led to business partnerships, referrals, and new revenue opportunities.

As Acadia Capital grew, he began refining his personal brand to reflect where he wanted to focus his time and energy.

Rather than trying to be known for every project he worked on, he started leaning more intentionally into his role at Acadia Capital.

I think this is such an important part of building a business.

Your personal brand isn’t just about how many followers you have or how often you post on social media. It’s about what people associate with you, the value you provide, and the reputation you build over time.

You can have a strong personal brand without a massive audience.

For short-term rental owners, that reputation can create opportunities with lenders, local business owners, property managers, investors, and potential partners.

Start by showing up consistently. Share what you know. Make thoughtful introductions. Follow through on your commitments. Look for ways to help people without expecting an immediate return.

You never know which relationship will eventually lead to your next opportunity.

And as your business evolves, your personal brand can evolve with it. You don’t have to be known for the same thing forever. You can refine your focus as your goals, interests, and business change.

---

Key Takeaways for Short-Term Rental Owners and Real Estate Investors

If you’re working toward your next investment or trying to scale an existing portfolio, here are the biggest lessons I took away from this conversation with Haydynn.

1. Show up where relationships happen.

Networking events, meetups, and industry communities can introduce you to people and opportunities you wouldn’t encounter otherwise. Some of your most valuable connections may come from simply being in the right room.

2. Understand your financing options.

Hard money loans and DSCR loans serve different purposes. Understand the costs, requirements, timelines, and exit strategy before committing to a deal.

3. Prepare your documentation.

Having your financial records, business documents, and property information organized can make the lending process more efficient.

4. Don’t underestimate the need for cash reserves.

Financing can help you acquire a property, but you still need liquidity to handle repairs, operating costs, and unexpected expenses.

5. Build systems before growth creates chaos.

Invest in the tools, processes, and people that allow your business to operate effectively as your portfolio expands.

6. Make providing value part of your strategy.

Strong relationships grow when you look for ways to help others, not just ways to benefit yourself.

7. Refine your personal brand as your business evolves.

Be intentional about what you want to be known for and how your reputation supports your long-term goals.

---

Build Your Real Estate Business With Intention

Growing a short-term rental portfolio requires more than finding properties with attractive numbers. It takes financial preparation, a clear investment strategy, strong relationships, and systems that can support your goals.

One of my favorite reminders from this conversation is that opportunities often come from taking action before you know exactly where the path will lead.

Whether you’re preparing to purchase your first rental, exploring financing for a larger acquisition, or building the infrastructure to support a growing portfolio, focus on creating a strong foundation for the next stage of your business.

You don’t have to have every detail figured out before you begin. But you do need to be willing to learn, build relationships, understand your numbers, and take thoughtful action.

And remember: the goal isn’t simply to own more properties. It’s to build a real estate business that works for you.

---

You can also learn more about Acadia Capital at acadialoans.com or connect with Haydynn on LinkedIn by searching for Haydynn Fike.

At Brand & Market, I’m here to help you build a more intentional brand, smarter marketing systems, and a business designed to support your goals.

Keep showing up, keep building relationships, and keep creating a business that reflects the future you’re working toward.