First Vacation Rental Venture

[Tracey Lynne Lightfoot]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Branson.

Purchase price: $420,000

Purchased Five 3 bed condos, remodeled, furnished and converted into a Nightly Rental Investment. Earning 42% ROI! This was not only my first personal investment venture, but my first venture using creative financing with a private equity partner to end up at closing with none of my own personal money.

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

I have been a leading a Team of Investment Realtors, assisting my clients build their net worth in Vacation rental investing, and decided it was time for me to eat my own cooking.

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

This was one of the listings I had been selling in this development. I put together a proforma for the bank based off of factual numbers that my clients had been producing. I also provided the proforma to my private equity investor and asked for the down payment, closing cost, and most of the furniture cost to be funded. My private equity investor did take second position on the deed for each property as security.

How did you finance this deal?

I obtained a commercial loan from the bank as leverage, and obtained private equity funding.

How did you add value to the deal?

I was able to use the years of experience I have working with Investors to assist me in structuring the deal. The bank also saw the added value since this is what I do full time and know the market I am investing in.