Purchasing, sight unseen, from the Western Himalayas of India.

[Corey Meyer]

Investment Info:

Other buy & hold investment in Big Sky.

Purchase price: $189,000
Cash invested: $5,000

My real estate agent/business partner sent me the listing the day it went on the MLS, at the time I was on a 12-hour bus ride heading due north out of Dehli, India bound for the remote western Himalayas. I already knew what I was looking for, I knew the numbers, as I manage several Airbnbs in this location and after looking through the photos I called my agent to put in a full price offer.

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

I have my hand in the STR cookie jar of Big Sky and had been waiting for a cookie-cutter investment deal similar to the property I already have.

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

I was on a 12-hour bus ride from Dehli, India to Kasol in the Himalayas when my agent at home in Montana emailed me the MLS listing. I scrolled through the photos and emailed her back that I was very interested. The next day she went into the unit and sent a video via fb messenger, walking through and talking about everything in the unit. I put then executed a full price offer within 24 hours of the property being listed on the MLS. The owner accepted as I arrived to the Himalaya.

How did you finance this deal?

This was the most difficult part of the deal. I put an offer in without pre-approved financing and the seller had accepted. I had been traveling for three months and my bank statements had only been drawing funds with little inflow. Bank after bank turned me away. I was nearing close without financing and had to extend the deal as I kept on the hunt. Finally, with help from a mentor, I found a local portfolio lender willing to finance the deal.

How did you add value to the deal?

As an STR investment, it was crucial that I get the property listed as quickly as possible. We were in the middle of the busy season with the ski resort running at full speed. I called up a few buddies who were able to help with the 10-day mini-renovation. We painted the unit, made some upgrades and then were out!

What was the outcome?

Guests arrived within 10 days after close and the unit had over $3,000 in bookings within the first week on Airbnb. Then Covid-19 hit, the ski resort closed and everything flatlined. Now I sit and wait. Hopefully, I have the cash to weather this storm.

Lessons learned? Challenges?

The Covid-19 crisis hit two weeks after the purchase of this property. Time will tell what this brings.