How can we grow our cabin rental business during this market slowdown with the capital markets so tight?
My family and I own and operate a successful cabin and vacation rental business in the Great Smoky Mountains of North Carolina and our business has been growing even during the recession. Our location offers our guests many things to do at reasonable prices and despite these tough economic times, families are still taking vacations and they really appreciate the affordability we can offer.
Since land and cabin prices have dropped by as much as 20% in our market, now is the time for me to take advantage of the real estate downturn and expand and grow my rental business which is actually growing in this market.
The problem we keep encountering is that with the credit and capital markets so tight, traditional banks will not even consider lending to us, even banks we have had relationships with for almost 10 years
We have excellent credit, have never missed a single mortgage payment, have a lot of equity in the other properties we own, nine years of year-over-year increased rental income, and growing demand in our market. Even with all these positives, traditional banks are still unwilling to lend money for investment property.
What other opportunities and sources of funds are available to someone in our situation so that we can take advantage of the lower real estate prices and grow our cabin rental business? Thank you for any help and guidance you can offer.