All Forum Posts by: Shannon Vistisen

No updates yet. We've been working with our GC on the blueprints for the actual build. Having to make some changes to the designs. We're currently working with a tree removal company to help clear some trees where the cabin will sit as well as grade in the driveway. Next is the gravel for the driveway itself. We hope to break ground early Fall and start renting early next spring. All weather dependent of course.

This is defiantly the more expensive and time consuming route to go in terms of STR. But we couldn't find anything that lent itself to the idea and concept we wanted to build out. We have a larger picture outside of this one build that hopefully will allow us to create the overall idea of a hospitality offering vs. just one STR cabin experience.

What are you looking to build out?

Investment Info:

Other other investment in Williamsburg.

Purchase price: $112,000
Cash invested: $12,000

Short-term Rental build out.

Building a modern cabin in the woods for families that want that outdoor experience in Northern Michigan.
- 6.62 acres
- Backs up to 1,000+ acres of public land
- Close to casinos, Traverse City downtown, numerous fresh water lakes

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

We couldn't find anything that would provide the opportunity for the service and experience that we want to provide.

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

We found the land, and now we're in the stages of designing the structure of the property.

How did you finance this deal?

We will be using a Construction Loan to bring this experience to life.

@Erik Stenbakken Thank you for the advice! We'll be doing just that. 

@Dwayne Ghant Thank you for responding to my question.

We are in the works to building our first STR property. We break ground in the spring. We have "not" pulled a construction loan yet. We plan to early spring of next year (2023).
In the meantime, we plan on relocating to the area so we'll be selling our primary. I just didn't know if our down payment for the construction loan would now be different because we won't be in a primary mortgage anymore. But those requirements might just fall under the 2nd home loan (at least 10% down) and not vacant land with the intent to build.

I might have answered my own question. I'll be reaching out to our financial institution to double check but I wanted to ask on here to see if anyone had experience similar to ours.

Thanks again!!! :)

We will be building our STR this spring. The property is 4 hours north of where we currently live. We're planning on relocating up there this summer. In the interim, we're selling our house downstate before we pull our construction loan for the build.

My question is; will we have to pay 10% down or 20% on the construction loan if we don't have a primary home anymore? I don't know how the process works or if there is any information I need to know to help us out with this process (loopholes, information that would benefit the transition or the smart way to do it to maximize our money to fullest extent, etc.)

Has anyone dealt with this before?

Thank you for any information you may share!

It's a representation of what we will be building. Our builder received these plans and we'll be making design changes as we go. But this is the foundation and layout. Simple, clean, and minimal :)

Investment Info:

Other other investment.

Purchase price: $112,000
Cash invested: $12,000

Short-term Rental build out.

Building a cabin in the woods for an outdoor experience in Northern Michigan.
- 6.62 acres
- Backs up to 1,000+ acres of public land
- Close to casinos, Traverse City downtown, numerous fresh water lakes

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

We are looking to create an outdoor experience in Northern Michigan. Starting with this one and hopefully growing it to a handful through out the western area of the state.

How did you finance this deal?

Second home loan

How did you add value to the deal?

We will be executing this with a land to construction loan.

What was the outcome?

N/A

Lessons learned? Challenges?

TBD

@Ed O. Agreed!!! We're starting our first build and have no idea where to go for questions based on experience. WE own the land but now we're moving into the construction loan phase. I could benefit from a group to bounce questions of off.

You mentioned that the builder financed the whole build. You didn't have to put up any funds while the build was happening?

We're planning on doing this now. Just secured the land and now we move into the next phase of finding and vetting a builder. We went the build route because the area we wanted to purchase in, we were getting priced out left and right.

Thanks for any advice and tips!

@Dan Slaughter Thank you! That would be great! What day/time works for you?