In October 2019, Rodeo Lending provided a private money construction loan to a short-term rental investor in Portland, OR. Rodeo’s innovative approach to underwriting this loan allowed the borrower to take cash out of an existing successful Air BnB type property which provided the additional money required for another Air BnB property that will be built. The existing property is 3,643 sq ft and has 5 units with an impressive occupancy rate since opening of 95%. The cash out will be used to build a new 7,387 sq ft property with 5 units that will also be short term rentals plus an additional commercial office space. Our loan is 65% to completed value. We provided a fund controlled construction budget with built-in interest reserves. Rodeo’s unique approach to this loan, allows the borrower to duplicate his success of his original property, and to build his growing real estate portfolio. The borrower will exit both loans with traditional bank refinances.