DTI, STR Loans & Growth: Funding Rentals Without Limits with Parker Borofsky
“If you’re expecting direct bookings to work overnight, you’ll be disappointed. But if you treat it like building a real business, you’ll see long-term success.” Parker, a powerhouse in the short-term rental space. Not only does she self-manage 12 properties across Tennessee and Florida, generating over a million dollars in annual revenue, but she’s also a seasoned mortgage expert. As the founder of Wealth Builders Mortgage Group, she specializes in helping short-term rental investors navigate financing options to scale their portfolios. This conversation dives deep into Parker’s unique approach to hosting, financing strategies, and her growing focus on direct bookings. Summary and Highlights Introducing Parker Borofsky Parker Borofsky is a powerhouse, multi-year national award-winning Mortgage Loan Originator and the visionary Founder of Wealth Builders Mortgage Group, powered by Movement Mortgage. A trailblazer in the short-term rental financing arena due to her investor-friendly approach, Parker combines passion, expertise, and an unrelenting drive to help real estate investors succeed. Over the past five years, she has financed an impressive $1.1 billion in loan volume, making her a trusted partner for clients looking to build and expand lucrative investment portfolios. 1. Why You Shouldn’t DIY Your Debt-to-Income Ratio (DTI) Parker emphasizes that many investors miscalculate their debt-to-income ratio, often limiting their own borrowing power. Loan programs have different ways of calculating income, and working with a knowledgeable loan originator can open up more financing opportunities. For hosts looking to expand, understanding how lenders evaluate rental income, self-employment income, and bonus pay can mean the difference between qualifying for another property or getting stuck. 2. The State of Short-Term Rental Markets Parker sees two markets where investors keep coming back—The Smoky Mountains and Kentucky’s Bourbon Trail. While some claim the Smokies are oversaturated, she argues that demand is still strong. “Some hosts are struggling, but the market isn’t oversaturated. The bar has just been raised. You have to market smarter and differentiate your property.” The takeaway? Short-term rentals remain a solid investment if you’re willing to put in the effort. 3. Direct Booking Strategies That Work Parker’s approach to direct bookings is refreshingly simple yet effective: If you want to build a sustainable direct booking strategy, start with small steps like Parker did—get a booking site up, engage with guests, and introduce a follow-up system. What’s Next for Parker Beyond growing her own portfolio, Parker is taking her expertise on the road. She’s speaking at major industry conferences, including Level Up Your Listing and her own event, Take the Lead, which focuses on empowering women in short-term rentals. Final Thoughts: Direct Bookings Take Time, But They’re Worth It One of the biggest mistakes hosts make is giving up on direct bookings too soon. It takes time to build an audience and gain momentum, but consistency pays off. Looking to improve your direct booking game? Join CraftedStays to get expert-built direct booking websites that actually convert. Follow Parker here ⤵️ Transcription Parker: I like to tell people don’t DIY your DTI and the reason for that is so many clients I feel like sell themselves short. They go on, they try to google, there’s somebody out there that’s got a debt to income ratio calculator which it just makes me cringe because there’s so many different ways to calculate debt to income ratio and the The problem is that these different loan products and loan programs allow us to count income differently. Parker: So, you know, self employment income, it’s not gross, it’s net, but we can add back depreciation. Uh, rental income. Some loan originators think you have to have one or two full years of short term rental income to use it, whereas I know that the Fannie Mae guidelines. So if you purchased a rental in July of last year, we can take that calculation and divide it up. Parker: by the number of months it was in service, not a full 12 months. And so if I’m doing your debt to income ratio and somebody else is doing your debt to income ratio, they’re using a full year, counting it against you, I’m doing seven months, your debt to income ratio is going to be lower with me. Gil: Hey folks on today’s show. I have parker. She was actually my loan agent when I end up buying my brands and property I’ve been wanting to have her on the show for a long while now We met uh in person also again at str nation and she’s has a wealth of knowledge specifically in really helping folks get their loans. So today we’re going to deep dive into kind of one, her experience to watch trends. She’s seen how she thinks about closing loans. It’s actually a pretty deep discussion. So we get into that. And it’s really interesting to how to hear how she approaches loans a bit differently than others. Gil: And then we get to dive a little bit deeper into her direct booking tactics. she actually deploys a lot of more traditional marketing that has helped her raise in, uh, direct booking. So I’m really excited to have her on the show. I hope you guys enjoy it as well too. Gil: Parker, welcome to the show. Parker: Thank you, Gil. Excited to be here. Gil: Yeah, I’m excited to have you. I personally know you. I’ve worked with you. I was a client of yours. I’m delighted to be, to have you on our show. Parker: Thank you. And you were a great client, by the way. Gil: I’m sure you say that about everybody. Parker: No. Gil: Uh, for folks that don’t know, Parker actually helped me close on my last short term rental in the Branson market. Uh, so she’s the one that helped me, uh, help me close that one. And that was when interest rates were really going up at that point. Um, I think we closed close to almost 8%, not quite, but almost there. Gil: We paid a pretty penny on points too. Parker: Oh yeah.