Posted: Thursday, December 21, 2023
Author(s):
Kiyomi Bramlette, Owner & Founder
Ryan Bramlette, ALC, Ranch Sales | Licensed in MT
Since the pandemic, we've seen a shift in the needs and wants of buyers. Pre-pandemic buyers typically wanted to buy bare land and build their own dream as opposed to buying into someone else's.
But that narrative has shifted. Buyers are looking for ranches they can enjoy now to serve as a refuge for their family, not years down the line when they can get on an architect and contractor's schedule.
The pandemic also shifted the percentage of absentee buyers. In many cases, absentee buyers lack local connections, making the thought of improvements and building that much more overwhelming.
We're sitting down with Ryan Bramlette, ALC, Ranch Sales, at Fay Ranches' and his wife, Kiyomi Bramlette, owner and principal interior designer at DesignHouse, to talk about how they've seen this shift in their own work and the advice they have for investors and families in this position.
What are the key considerations a buyer needs to take into account if they want to find an investment property they can enjoy with their family as soon as possible?
Ryan:
In addition to standard due diligence, buyers seeking immediate enjoyment of their ranch have a few different scenarios to explore.
The first scenario involves discovering the elusive turn-key ranch, where they can simply drive through the gate and immediately start enjoying the property, along with the existing improvements. While some remodeling is still likely to make it their own, they can, at the very least, have a comfortable space to use right away.
The second scenario often considered by clients is to acquire undeveloped land. In this case, they might consider buying a home in the nearby town or even using short-term rentals like Airbnb while they assemble a team to build the desired improvements on the ranch and then perhaps selling the house in town, hopefully for a profit.
The third scenario, which I believe to be ideal, is finding a ranch that includes a smaller, modest, and comfortable home on the property. This home can be used immediately while the client organizes a team to construct a main ranch residence. After the main ranch residence is complete, they may choose to remodel the original home, converting it into a guest house.
Kiyomi:
What he said. :)
Have you two collaborated on any recent projects where the owners faced the aforementioned conundrum–they found their dream property, but it wasn't quite turnkey–what did they do?
Ryan:
We've had the opportunity to collaborate on a few projects. Most recently, I had the pleasure of working with an individual searching for a fly fishing property in Western Montana. They ultimately found the perfect piece of land—a remarkable fishery with breathtaking views. However, the property lacked any existing improvements, and like many of our clients, they are absentee owners.
As they were eager to kickstart the improvement process, they found themselves a bit overwhelmed, uncertain of where to begin. They had an architect but weren't sure where to go from there. Fortunately, Kiyomi was available and a good fit for their needs. I've come to appreciate how deeply involved she is in all aspects of construction projects. With her extensive network of architects, general contractors, and skilled artisans, she connected our clients with the right people, forming a top-notch team and ensuring the successful execution of the entire project.
Sometimes, it's just about finding a couple of key people on your team, and then they can leverage their extensive network, adding a lot of peace of mind for absentee owners. Not everyone thinks of reaching out to an interior designer this early, but I've learned that they're just as connected and pivotal early on in projects.
Kiyomi:
The clients had already chosen their architect but needed help bringing the look and feel of their home, both the interior and exterior, to life. The design process is a lengthy one, often spanning several months, during which a continuous exchange of questions and answers transpires between the homeowners and myself. We delve into the overarching aesthetic they aim to achieve and their vision for life in Montana.
What's nice about working with an interior designer as an absentee owner is that I take the concepts and do all the legwork. My clients only had to fly out once to view the finishes and meet with the vendors we'd chosen, ask final questions, and approve them.
I strongly believe that it's invaluable for the homeowners to physically interact with the materials, have their questions addressed by the vendors, and ultimately cultivate confidence in their local team overseeing their build before the installation commences.
How can remote owners start assembling a team and local boots on the ground to help them manage and further develop or update their new investment?
Ryan:
In my experience, I would recommend that individuals explore and leverage any existing relationships they have to help them identify valuable resources in the area in which they are buying land. This could involve reaching out to their ranch broker, seeking advice from friends or family members who have prior investment experience in the area, or conducting their own research. However, we all know that referrals from a trusted source typically prove to be the most fruitful.
Moreover, it's beneficial to think creatively and look beyond the obvious choices. Professionals like interior designers may have established connections with architects and general contractors, which may help open doors more quickly.
Lastly, I would advise placing trust in local talent. It's usually wise to avoid the unnecessary complexities of bringing in architects, designers, or contractors from outside the area. The construction and design talent around Bozeman, as an example, is incredibly talented, well-acquainted with the region's specific requirements, and possesses the relationships locally, to get things done.
Kiyomi:
I recommend starting with your ranch broker and asking, "Who do they recommend?". I know firsthand the connections Ryan has developed over his career and that ranch brokers really know and care about the areas they represent.
Typically, brokers maintain a comprehensive network of professionals, including architects, interior designers, landscape architects, and contractors, making them an invaluable resource to kickstart your project.
Emphasizing the importance of assembling a local team is key to ensuring a successful building process. Local contractors have cultivated relationships with dependable subcontractors, ensuring high-quality work.
Since the pandemic, many desirable areas, like the Gallatin Valley in southwest Montana, where we're based, have enjoyed a steady flow of work in the construction industry. This has resulted in backlogs and reduced immediate availability for new projects. This has made it challenging for out-of-state clients, who often struggle to elicit responses from tradespeople. Having help from local connections is vital to overcome this hurdle.
Before COVID, upgrades and renovations weren't always the best investment for ranch owners. Has that shifted? What can owners do to improve their investment as they're planning out their own uses of a property?
Ryan:
Yes, there has been a noticeable shift in recent times, driven by several factors. An increasing number of buyers are now focused on immediate satisfaction. I certainly understand that each person has a unique style and that many ranch investors prefer to construct exactly what suits their preferences, which is absolutely valid. However, if you're looking for advice on optimizing the return on your ranch improvements, my suggestion is to steer clear of overbuilding and shying away from passing trends. When working on your ranch improvements, aim for a balance of refinement and practicality, emphasizing timeless design versus overly customized features.
That's all the design sense I have, and I learned that from Kiyomi. I'll let the designer answer this one better…
Kiyomi:
I definitely agree with Ryan about the importance of timeless design and not overbuilding. At DesignHouse, we work with our clients to create a hierarchy of importance at the start of any project. This takes into account the buyer's needs and desires and helps us create a budget and overall scope for their project. Say it's a ranch with a modest existing home that the clients want to live in while the main house is built; that remodel will likely focus on enhancing the primary living areas, including the living room, kitchen, primary bathrooms, and outdoor spaces.
Renovations in these key areas tend to offer the greatest return on investment, benefiting both the property owner and the overall property value. Additionally, incorporating energy-efficient upgrades, such as solar panels or sustainable features, can be particularly appealing, especially in the context of a remote ranch located in Montana.
Any final thoughts or words of wisdom to those looking to own and enjoy a ranch out west?
Ryan:
Pick your horse and ride it. What I mean by that is, invest time in researching and interviewing ranch brokers. It's essential not only to gauge their knowledge and personalities but also their ability to facilitate connections with a wide range of professionals necessary to turn your dreams into reality. This includes experts in interior design, architecture, general contracting, pond and stream consulting, and ranch consulting, among others.
Once you've selected a broker who is a good fit for you and who can guide you through the entire ranch purchasing process and beyond, enjoy the ride. The process of finding a ranch can be incredibly enjoyable.
Kiyomi:
Intertwine the beauty of the landscape with the interiors of your home. Bring the textures, colors, and patterns you see in the land into your spaces. Carry a little bit of the old in with the new. You will feel an immediate sense of connection to your ranch. Cultivate a team that supports your vision and understands your property's value. These are the people that will help the process become a journey worth investing in.
