All Forum Posts by: Jason Martinez

The market is good in VT. I talked to the only ALC (Accredited Land Consultant) in Vermont. He walked the land and feels he can get 110k. I have a listing agreement in front of me. I plan on signing this afternoon after the meeting with my attorney.

It would be a great destination BnB. The airBnB market is VERY good in this area.

0 Votes

Rutland, Vermont

Quote from @Jay Hinrichs:

Quote from @Forrest Webber:

@Jason Martinez

I think it’s great you’re thinking this through ahead of time. To answer your core question: bringing the land to the table is definitely enough value to justify being a partner, but the exact split depends on who’s contributing what.

Here’s how I would look at it:

1. Structure Based on Total Project Contribution

If your land is free and clear, I’d calculate what percentage of the total project cost it represents. For example, if the land is 30% of the total capital stack, I’d lean toward you having a 30% ownership stake.

If your partner is acting as GC or is sacrificing fees to quarterback the build, you might give them a little extra slice to account for their sweat equity.

If the other party is only bringing cash, I’d structure it so they receive a preferred return (pref) on their money before the profit split kicks in. That’s very common and fair.

2. Density & Alternative Uses

10.2 acres is a lot of land. I don't know the vehicle-per-day traffic counts (in Texas I'd check TX DOT, you might check Vermont's equivalent), but there could be potential for more density or alternative low-impact commercial uses that don't rely on heavy traffic. A few ideas:

Small-bay industrial flex buildings
Industrial outdoor storage (IOS)
Boat/RV storage
Contractor yards or laydown yards

These types of projects create stable cash flow and typically require far less management than STRs or spec home builds.

3. Minimize Your Risk

I totally get not wanting to manage a spec build from 500 miles away. That’s why I like low-impact commercial uses—they require less day-to-day involvement once leased.

Bottom Line:

You’re on the right track. If you’re not bringing additional cash but you’re contributing land, structure the equity by percentage of total project value. If your partner adds sweat or sacrifices fees, give them a reasonable bump. If it’s just cash, they should get a preferred return first, then split profits.

Happy to brainstorm more if you want.

he owes 50k on the dirt I think this is going to be a tough one.

1. remote and rural
2. no experience
3. needs well and septic unless I guess the well is already there.
4. lack of builders but maybe he has one.

this would be a good project in my mind for a modular home. not a stick built but either way going to need more cash into the deal to pull it off I highly doubt any investor would be interested in this as a money making propistion.. might be a good friend and family though.

I agree with you and that's why I'm putting it up for sale.

I due owe 50k but it is worth more than 50k. The equity is still worth something right?

if I owe 50k on something that's worth 100k I see it as 50k in equity?? or are you saying you see it as JUST 50k worth of debt?

There is a spring on the property. not a well.

I do have a builder who will build for me. He has been building for over 40 years with over 20 as a super for one of the biggest construction company in Vermont https://naylorbreen.com.

0 Votes

Rutland, Vermont

Quote from @Juan Cristales:

Quote from @Jason Martinez:

Quote from @Robert Ellis:

Quote from @Jason Martinez:

I own 10.2 acres of undeveloped land in central VT. I want to build a small SFH or STR on it. It has very favorable zoning laws, the land is buildable, and the area has a housing shortage. Land is 40 mins from Killington 15 mins from Brandon Vermont (the perfect Vermont town) 20 mins from Middlebury. I do have a quality builder that could facilitate the build but not required for JV.

Is this enough to bring to the table? If the partner was only a capital partner and had no involvement with the build would a 50:50 split be worthwhile for the capital partner?

This would be my first JV and am open to any advice suggestions on the best way to proceed.

don't talk to the builder talk to a surveyor and your city about splitting. 10 acres is a lot of land. at a density of 4-5 units an acre you could get 40-50 lots out of that and do way better than the builder. builders have no value. it's a commodity. you have all the power. you own the land. I'd be looking to do an SPV and raise additional equity to capitalize the project and make it much larger if all 10 acres are buildable. you are going to have 400k in costs to do that kind of subdivision but you'll make way more we are looking to start doing the same strategy in Columbus Ohio now for large subdivision developments

@Robert Ellis I wish I could . The tiny town the land is in won't let you build with less than 10 acres.

So one house per minimum of 10 acres? Is that what I'm understanding?

Yes, 10 acres per home.

1 Vote

Rutland, Vermont

Quote from @Forrest Webber:

@Jason Martinez

Here’s how I would look at it:

1. Structure Based on Total Project Contribution

If your partner is acting as GC or is sacrificing fees to quarterback the build, you might give them a little extra slice to account for their sweat equity.

If the other party is only bringing cash, I’d structure it so they receive a preferred return (pref) on their money before the profit split kicks in. That’s very common and fair.

2. Density & Alternative Uses

Small-bay industrial flex buildings
Industrial outdoor storage (IOS)
Boat/RV storage
Contractor yards or laydown yards

These types of projects create stable cash flow and typically require far less management than STRs or spec home builds.

3. Minimize Your Risk

I totally get not wanting to manage a spec build from 500 miles away. That’s why I like low-impact commercial uses—they require less day-to-day involvement once leased.

Bottom Line:

Happy to brainstorm more if you want.

Forrest Thanks for the offer, I'm going up to the property this weekend. I have a few meetings with the realtor, builder to talk about my options.

The area is pretty remote. There is little to no traffic at all. I thought of making a Hipcamp out of it since the costs would be minimal but so would be the profits.

I do own a 12x20 tiny home (shed converted) that's finished. The catch is its in New Jersey.

I'm looking at 4500-5500 to get it to Vermont and 4-5k to improve the ROW to get it up on the property.

Hopefully after this trip up I'll have enough Info. to make a decision.

This is the tiny home

0 Votes

Rutland, Vermont

Quote from @Forrest Webber:

How did you decide on HBU (highest and best use)?

My novice research shows that a STR would be the HBU.

Building a spec house would be next HBU, but the risk and difficulty of doing these from 500 miles away is what's turning me towards selling.

I DON'T want to sell but I cant make a better move (something that cash flows) with my capital tied up in this land.

If that makes sense??

1 Vote

Rutland, Vermont

Plan "B"

I am looking at selling the land. I wanted to keep this land and have a STR on it.

After weighing my options I may just sell it.

I owe 50K paid 75K realtor wants to list it for 110K.

After all my holding costs and capital gains I would have a profit of $26,500.

Not a home run but not a loss either..

I bought in Dec. 2023 so just over a year of holding. I do use the land when on vacation and I have family 10 mins from the land that use it for hunting and Hiking, camping.

Does this sound like a good plan "B"?

I just wanted to get some other opinions on my plan B

0 Votes

Rutland, Vermont

Quote from @Sterling Pompey:

Hi @Kristian Demsky,

it worked out well! I actually utilized it to purchase my current place that I'm living in right now.

Congrats!! glad it worked out for you! Do you mind sharing the lender you used? I meet the income requirements for my area. I would be interested in something like this program.

0 Votes

Chicago, Illinois

Quote from @Chris Seveney:

Quote from @Jason Martinez:

Quote from @Chris Seveney:

Quote from @Jason Martinez:

Is this enough to bring to the table? If the partner was only a capital partner and had no involvement with the build would a 50:50 split be worthwhile for the capital partner?

This would be my first JV and am open to any advice suggestions on the best way to proceed.

If you have a builder, why not just engage them and get a loan vs. having to deal with a JV partner? Especially if they are a money partner only.

I've brought it up with the builder but he's not interested at all. He said he'll build it but he's not looking to invest at all.

Is this in Rutland? How much do you need? How much are you putting in?

What is the cost of construction? Is the land already owned? PRovide more details. We own some properties in Rutland

@Chris Seveney

The property is 20 miles north of Rutland.

I am working on getting estimates for site work and septic (waiting for the snow to melt) before I have a estimate for the project. I plan on a modest "cabin"/ SFH.

The amount I can put in is 20K-40k

I am waiting to hear back from the builder on the estimated cost of construction.

yes, I own the land. I owe 50k on it.

How are the properties you own in Rutland performing? Rutland is a popular place for landlords. Its one of the few place in VT that have a good population.

The area where my property is at is a big recreation area. There are only a few STR's in the area and they are booked most of the year. (I know because I have used them for years and know the sell out quick). The property is bordered by the Green Mountain National Forest. It is in a great location for winter and summer recreation with a lake and ski resort less than 5 mins away.

If you like to connect shoot me a DM and I can show you the location of the property

Thanks for the reply!!

0 Votes

Rutland, Vermont

Quote from @Zach Cummins:

Jason, I am actually about 2 months away from finally building a raised deck out there. I've had other real estate challenges and 1031 exchanges that have pre occupied my time. But I will be sharing pictures and videos on my IG @zachrealestate lets connect though!

Sounds good, I am also building a raised deck this spring. I've been eyeing the Scout tents.

I'm hoping to have some campers this summer to offset the cost of the land till i can have a cabin built.

0 Votes

Quote from @Chris Seveney:

Quote from @Jason Martinez:

Is this enough to bring to the table? If the partner was only a capital partner and had no involvement with the build would a 50:50 split be worthwhile for the capital partner?

This would be my first JV and am open to any advice suggestions on the best way to proceed.

If you have a builder, why not just engage them and get a loan vs. having to deal with a JV partner? Especially if they are a money partner only.

I've brought it up with the builder but he's not interested at all. He said he'll build it but he's not looking to invest at all.

0 Votes

Rutland, Vermont

All Forum Posts by: Jason Martinez

Jason Martinez has started 1 posts and replied 19 times.

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