All Forum Posts by: Jackson Boyer

Thanks for the reply. Yes I have, I’m not trying to max out the cash refinance. Would prefer to keep a bunch of equity in the project and cash flow. Have you worked with anyone you liked for a Dscr loan?

Investment Info:

Single-family residence other investment.

Purchase price: $400,000
Cash invested: $2,600,000

Montana single family home. Would like to hold the property long term as a rental.

What made you interested in investing in this type of deal?

Upside in the area is very high. Close to skiing. Huge development in the surrounding area. Strong comps.

How did you find this deal and how did you negotiate it?

Looking for land all over. Found a lot I thought was unusually inexpensive compared to surrounding homes. 99 year old entrepreneur owned the land and many lots around. Thought I would be able to make friends and get a deal. Lot sat for 6 months. Ended up negotiating with his 4th wife. Got abused and they came off the price 5k. Year later the lot tripled in value and I thought developing made sense.

How did you finance this deal?

Cash and a construction loan. First time developer so the bank ended up making me take on a higher limit than I was projecting. I am not done yet but my numbers are turning out to be more accurate.

How did you add value to the deal?

Design and being hands on. Stepped away from my software career to focus on the project full time. I have been involved in every phase. Pulling wife, nailing off trusses, concrete forms. You name it, I have touched it. Today I have moved in 200 sheets of drywall.

What was the outcome?

TBD.

Lessons learned? Challenges?

Don’t sweat the small things. Everything takes longer. Labor is difficult to find and harder to keep. Quality isn’t guaranteed, but helps if you are on site everyday.

I am on schedule to finish a new construction project in Big Sky, Montana (considered rural but like Jackson, WY and Aspen, CO has great comps). After completing, the home will be used full time as a short term rental. The LTV is only 20%, also have about 50% of the loan value in cash and cash equivalents that I wouldn't like to tie up in the properly.

Using services like AirDNA, Vacasa, etc the property is projected to produce 300k-400k a year.

I have been the general contractor full time on this project for the past two years and don’t have w2 income to support a traditional loan. After completion I have an offer with a development firm with a good salary (150k).

This is my first real estate deal and I’m just looking for some advice or guidance. What to do in this scenario / introductions etc.

Deal Summary:

Rural High End Home

Appraised value 10m

Loan amount 2m

Completion date March

Happy to provide more details and learn more.