SYNDICATED A SHORT TERM RENTAL -- BLUE RIDGE GA

[Kyle Fugatt]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $810,000

SYNDICATION! SHORT TERM RENTAL!!

Bought the cabin for $810k, Commercial Loan, Synidcation, Raised $200k through 506(b).

Re furnished the house, converted 3 bay garage into 2 game rooms and theatre room.

Valued around $1M, with STR income, will be valued around $1.3M-$1.5M!

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

We manage STRs in Blue Ridge, and brought Syndication together with the STR model!

OPM!

Scaling Baby!

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

On market, through an agent.

How did you finance this deal?

Commercial Loan, Syndication - 506(b)

How did you add value to the deal?

Converted 3 bay garage into movie theatre and 2 game rooms.

STR income adds value, now based on Commercial evaluation.

What was the outcome?

we still own it.

Lessons learned? Challenges?

Dont Write off everything on your taxes! You need to show an income if you want to sign on loans.

The biggest challenge was finding someone to sign on the loan with me, i showed no income in 2020, and needed more cashflow on paper.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes!