After years of searching for suitable property in the Durango area to relocate the shop to, we have finally found a really fantastic parcel south of town that is within our price range. Our local bank is willing to finance most of it, but we are still going to need a little assistance with the down payment portion. If you know me personally, you know that I’m not very keen on asking folks for money-I’m a rugged individual with Western values of self sufficiency and working hard to earn everything you acquire. I have worked very hard the past five years, but most of the profit from the company has been re-invested back into the business. Infrastructure improvements at our current shop location, new vehicles for safely hauling materials and tiny houses around, maintaining/upgrading tools, purchasing a forklift, starting to buildup material/parts inventory, developing plansets/kits, and so forth.
RMTH has some funds to put into this new property, but it will basically be a land loan and these carry higher down payments until a legal structure can be established and converted into a more traditional mortgage. Not only this, but we will need to set aside some funds for site improvements such as cleanup, access, utilities, and so forth. We aren’t even getting into the cost of a new shop building just yet, which we can finance separately and contract ourselves, but for now our immediate goal is to acquire the property and begin the process of preparing it for the new building. We have enough flexibility at our current location to keep operations in progress, but obviously the sooner we can move away from making payments on two locations, the easier it will be to make the transition.
So this is where you, the investor, come into play. We are open to all different kinds of investment strategies for those who are able and willing to help out. We are not looking for astronomical sums of money here, probably 40-60k total assistance. We are thinking it will take the form of 2-5 folks, but it could only be one or it could be more! The primary forms of return on your investment are:
- traditional term loan with 10% interest. For a $10,000 loan over 36 months, you would earn $1,616 in interest.
- Custom Built Tiny House with “at-cost” pricing. Normally, we have a builder fee associated with each tiny house we complete, ranging from $3-10k depending on the size and scope of the tiny house. We would waive this fee for anyone willing to put up $10,000 or more in capital. So, in addition to the repayment of the initial investment, you would probably save somewhere around $6k on the cost of a custom built tiny house. Much more return on your investment, however, we understand there will be fewer people interested in going this route
A third option is percent ownership in the business. We are not a publicly traded company and do not have shares, so we would all have to sit down with a CPA and figure out what made the most sense here. We are least interested in this option due to the complexity involved, but if the right opportunity arises we are willing to consider.
Fourth- we are not bankers or financial gurus, but I’m sure some of you are, and if you would like to present other options, please let us know! We really are interested in a win win win for everybody involved. RMTH wins by getting a new more efficient shop, customers win because we can lower our costs, investors win by getting a nice return on investment, we can potentially hire more employees, life is good, everyone wins!
For you savvy investors looking for some security, we do have assets that can be pledged as collateral in the form of vehicles, tiny house shells, forklift, and other equipment. We might end up having to sell some to try and liquidate funds, but if we don’t, we are totally fine using them to secure the loan(s).
Perhaps you yourself are unable to help us out, but maybe you know of someone who could help? Feel free to send them our way.
We can be reached directly at 970 335 9577 or greg@rockymountaintinyhouses.com Thank you for your generous consideration!!
I own Chain Saw City, Gallup NM
A stand alone Stihl Dealership
Interested in expanding business.
You can google my name and my business.
I have a CPA and very strong credit that might help dramatically in your business situation.