Took a raw lot in a subdivision with great views and packaged it into a turnkey pre-construction short-term rental cabin. This provides imitate equity upon completion and increased cash flow.

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

My real estate team has been doing this type of investing in the Smokies for a couple of years now. There is a lower cost of entry and high margins so it can be a great way to get started if managing a short-term rental isn't quite your thing.

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

This deal was brought to me by my partner and he handled the majority of the negotiations. We connected with the lot owner who was behind on some HOA fees and no longer wanted the lot so we were able to cover his fees and let him walk with a nice bit of cash.

How did you finance this deal?

This was a 50/50 partnership in which we equally split profits and costs. The totals I refer to are both sides combined. I funded my half via a private money loan from a relative in which I gave him a 30% ROI on his money in 8 months.

How did you add value to the deal?

I added value by taking a raw lot and getting it surveyed, septic approval, and the builder in place ready to build a turn-key STR.

What was the outcome?

The outcome was that I sold the lot wrapped up in a construction loan with the builder's contract to give the end buyer a turnkey cabin.

Lessons learned? Challenges?

I learned the permitting process and what it takes to get the septic approval expedited by the environmental health dept. Working closely with one of my builders I was also able to learn more about what needs to be done to streamline the process on their end to decrease the build timeline and provide a smoother experience for the buyer.

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

I worked with my go-to construction loan lender who was able to help the buyers finance the deal as well as a super great high-energy agent that represented the buyers. I would happily do business with both of them again!