FEATURED DEAL

Structure: Passive Equity, Hotel Acquisition
Purchase Price: $820,000
Equity Available: 10%
Min. Investment: $50,000 (5%)
Unit Valuation: $1/Unit | 1,000,000 Total Units

📈 Highlights 
Target ROI: 30%-40%+ Cash/Equity AAR over 3 years
Pre Rev Valuation: $1mm
Down Payment: $150,000
Value Add Budget: $350,000
Post Rev Valuation: >$2mm+

Description:

18-unit Hotel across from Hot Springs State Park and County Fairgrounds, on main drag leading north out of Thermopolis.  Access to Bighorn River for fishing, and it’s across from the Dairy Freeze restaurant attraction in town.  Space for drive-thru Coffee Shop under sign.  Also included is a 3BR SFR on 2 commercial lots adjacent to the hotel’s western border i.e. further development potential to increase room count.

The Plan

• Short plat the SFR at closing.  Utilize the Lots for Parking.  Proposed 7-10 new rooms.
• Complete permitting for  7-10 New Guestrooms + Rooftop Deck
• Rehab SFR, increasing from 3BR to 6BR Vacation Rental for Groups 12+
• Complete New Guestroom Construction
• Operate and Stabilize 12-18mo post construction
• Drive Value to $2-2.2mm+ in 2-3 years, creating $800k-$1mm gain

ROI = $800k-$1mm ROI on $150kdown = 800-1000% over 3 years
The Rub?  --> 10% ownership on reversion gain of 800k-$1mm = $80k-100k passive equity gain on top of 10% cash flow return annually, translating to closer to 40%+ROI