Hayden was dead serious, so we conducted a down-and-dirty, off-the-cuff acquisition discussion while she slogged her way back to her car. We reviewed the property size, utilities available, possible housing type, infrastructure requirements, and ballparked costs to realize her dream. Ideas and numbers were randomly thrown about and ultimately had no validity with the volatile state of affairs waiting around the corner. The lot was well-priced but had failed to gain traction before COVID-19, and with the national lockdown, our speculation was it would take time for this listing to garner actionable interest. It is important to remember this was early spring 2020, and most people were sheltering in place, only a month + into the lockdown with no end in sight. The full extent of the supply chain disaster had yet to hit the fan, and the tsunami of people searching for alternate living situations was mere weeks away, as a dam was ready to break. Hayden understood the seller, who sat on a lot for almost a decade, needed a quick sale. We translated a ‘quick sale’ as a willingness to negotiate, so we discussed coming in under the asking price to determine the owner's bottom line. My philosophy has always been to make money on purchases and not hope for future value appreciation. In short, always attempt to start with a favorable equity position. It was a gamble as the asking price seemed more than fair but the fact remained raw land presented marketing challenges during the best of conditions. During this brief point in time, real estate activity was, at best, anemic, so the hope was these factors would work in Hayden's favor. We settled on requesting an 8% discount off the asking pricing as the offer was close and also presented a nice round number. A penny saved is a penny earned, even if it is just a penny. Such a big commitment made her understandably nervous, but the excitement of the acquisition led to the next call, the new realtors.

Removed by 7 states and almost 2 miles closer to sea level, I felt ill-equipped to properly assist her. I soothed my discomfort by speculating her chances of success were low and held my breath. I was smart enough to realize we didn’t know what we didn’t know about building in the mountains, but I fully expected the search to continue so I could kick this can further down the road. Perhaps a condo or townhouse should be a viable option. Little did I know the can had become a snowball at the top of a mountain, rolling downhill, gaining momentum and heading my direction - fast.

In Hayden's favor, her offer only had a singular contingency of loan acquisition, as there was no home inspection or need for her to sell an existing property. Purchasing process logistics were not straightforward as the nationwide lockdown was in full effect. People and normal processes were disjointed, and the execution was less business and more herding feral cats. Several days passed before the owner received the offer and could respond formally. Hayden spent the time researching the area, HOA requirements, reviewing disclosures, development documents, and anything to understand what she was looking to purchase.

Nothing ventured, nothing gained, was about to take the central stage as the current owner surprisingly countered close to the offer at 5% below asking but requested a speedy closing. However, they did not make the time constraint part of the counteroffer. What initially seemed a great value from my 1500-mile-away perspective now seemed even better. This ill-informed speculation was perceived as a vote of confidence if not encouragement. The numbers were so close she accepted the counteroffer without hesitation, digitally signing the counteroffer and initiating a wire transfer for the deposit. Unsettling, but Hayden now needed to obtain a loan to purchase raw land.

It was the strangest of times as there was no stopping at your local bank to converse with anyone, and this next step was the first in many reality checks. Smiling sweetly and relying on your charm to convince a loan officer to finance your dream was impossible. Hayden's Bank, like most Denver-based institutions, would not consider mountain land loans, so the only option was small local institutions with a knowledge and commitment to the area. She had no standing or established working relationship with any of them, but occasionally, the stars line up in your favor, and this was one such case. With the economy at a virtual standstill, there was limited banking activity, let alone mortgage applications to process, and it became apparent that bank employees needed to generate activity. A few phone calls netted genuine interest from several local banks, and different loan packages became available with remarkable projected turnaround times of 30-45 days. Most required 20% down, slightly higher interest rates than the going rate, and a shorter primary term than typical home mortgages of 15 - 30 years. Some were interest only with a balloon payment in 5 or 10 years. Others were fully amortized loans over the same period. Hayden had been saving for years for this purpose, so her decision was based on determining the best terms for her situation. She was more prepared than I was at her age, and it served her well. She had eliminated all debt and saved for years, knowing home ownership was in her future. The options were weighed for several days, and the conversation about her time frame to build a house became the pivot point in all conversations. If she planned on holding the property, the more typical amortized loan would be the right choice. As far as she was concerned, dirt and sawdust should start flying tomorrow, so interest only won the day. Her rationale was to build quickly and roll the property note and a construction loan into permanent financing.

I have been involved in projects that took years to develop, and pulling out the circular saw in a few months was unrealistic. Permits and various municipal/state approvals can take months during “Normal” times in non-challenging locations. Of course, this assumes you have working construction plans, and we have yet to put a viable strategy on paper. Months, if not years, can blow by for design, plan creation, and budget preparation if everyone is on the same page. A significant overriding design component and a deluge of supporting nuances need to be addressed. This requires time, and rushing the process can cause confusion, lead to delays, and yield potential problems. Hayden's acceptance of these facts convinced her the process would be the process, and she begrudgingly agreed to an increased timeline.

It did not stop her from trying to find a way to expedite the process. My email box was constantly filled with A-Frame design suggestions, prefabs, log cabins, and component homes, intending to get things underway as quickly as possible. For some reason, all these options lacked the personal touch she sought as she talked herself out of everyone with very little encouragement from me. I was still unsure of my status with this whole process until she asked if I would help her design a home. In what appeared to be a theme for me, I again attempted to kick this can further down the road, knowing the deal isn’t done until there is a transfer, suggesting waiting until she closed in a couple months. Also, I was knee-deep in my COVID home project and still not 100% sure this would materialize. My approach was, why get worked up over something that may not happen? Hayden was on a mission that would become an obsession over the next 2 years. This is precisely what was needed for her dream to become a reality.

With a copy of the contract and proof of down payment funds, her loan application was submitted. It was shocking how fast the review process was. Within days, the loan received preliminary approval, with final approval dependent only on the appraisal. Apparently, appraisers were also looking for something to do, far away from the maddening crowds, and within 2 weeks, the evaluation had been submitted, reflecting a below-market purchase price. Final approval of the purchase loan followed 3 days later, and closing was scheduled for the 26th, 1 day less than a month from the original offer date. This is a tribute to Hayden's ability to make things happen. Dad was now on the clock.