Friendly home game runs once every 1/2 weeks. The Villain (my friend), is a very LAG player who bought in for 300 and ran it to 3.3k and became chip drunk. Slightly tilted - just lost (stone cold) nut flush all in on the turn; lost to the board pairing on the river.

Villain is very loose preflop, chasing draws, calling down everything with top pair, two pairs on any dynamic boards without hestitation. Creative player, almost calls up to $50 with any 2 cards.

Almost everyone have over $1500 in a 1/2 home game.

I picked up 88 in the CU.

Villian (MP) made it $30 and I call and BU(short stack) shoves for $120 total. Villain calls, I called. (~$360 in pot).

Flop 8JJ

Villain (MP) who makes it $100. I call(~$560 in pot).

Turn Q

I check here and Villain bets $350. I check-raise all in for $900 more - Villain announces that he loves his hand and said he has outs to straight flush, flush draw. He calls.

I announce I have a boat and he said I'm good, but he still has outs. I don't think he has a Jack or else he would snap call.

River 7 Bricks and I take down the pot. Button does not show.

Villain later told me that he had 9 and 10 with straight and open ended straight flush draw.

Did I play this hand incorrectly? How should've I played it instead (I did get maximum value), but how do you play the worst boat possible? What are ways to exploit this player? What could've Villain do to avoid this?

Even though it's a big pot for 1-2 it's still 1-2 blind. You might get more discussion in the LLSNL forum.