170 S 11th St
Lebanon OR

Executive Summary

Deal Highlights

Purchase
Price

$160K

Rehab / Holding Costs

$92K

After Repair Value

$310,000

Hold
Period

6 months

Investor Capital Needed

$120K

Investor Loan
Annual Interest Rate

12%

Minimum return of 6%

A $40K Loan
Returns

$2,400

Deal Story

We are seeking $120,000 to fix and flip this 1,242 SF house with 3 bedrooms and 1 bathroom. It was built in 1946 in a neighborhood off Highway 20 in Lebanon.

The owner has advanced dementia, and it's no longer safe for him to live there. For example, they removed the range and only let him cook with a microwave oven after an accident. The RV houses a caretaker, who has been given notice to vacate now that he no longer lives there.

His daughter has power of attorney, but she's overwhelmed and just wants to be done with the house. Further motivating her: her father doesn't have a will! Given his recent rapid decline, they want to sell the home quickly and avoid risking it going to probate.

They also recognize that the house needs a lot of work. So here's the cool part: they don't need a lot of cash right now, so they're willing to accept $25,000 now, and they will get the remaining $135,000 after we repair and sell the house. In a way, it feels more like a partnership with them.

Rehab Project Plan

See below for a detailed scope of work.

Sources of Funds

Seller Note $135,000

Investor Note $120,000

Total $255,000

Uses of Funds

Purchase Price $160,000

Closing Costs $2,400

Rehab / Holding Costs $92,600

Total $255,000


+ Investor Note Interest $7,200 (12% APR for 6 mos)

+ Seller Note Interest $3,375 (5% APR for 6 mos)

Total Project Cost $265,575

Key Dates

PSA Executed

June 17th

Funds Due

June 27th

Close Date

July 2nd

Property Overview

Facts and Features

Business Plan

Risks

Construction Plan & Budget

Rehab Budget

Financial Projections

Financial Dashboard

We're conservative with our ARV, which is good. The Monte Carlo simulation is run 1000 times and takes into account the uncertainties of the rehab budget, the hold time, and the ARV. Our estimates are in the middle.

The Team

James Furlo

Sponsor

After getting his MBA, Mr. Furlo started working for HP Inc. and actively investing. Over the last 14 years, he purchased over $4 million in real estate. His investments include 10 properties that span apartments, storage, and warehouses. He's also a limited partner in a 112-unit development project. Learn more

Lawrence Potts

Sponsor

While working as a logistics coordinator & warehouse manager for Tigerlights in the agricultural industry, Mr. Potts invested in real estate in Oregon and Louisiana. He also started a Junk Removal company. After successfully selling his Louisiana portfolio and Junk Removal company, he became a full-time real estate investor and broker.

Mr. Potts has flipped several residential properties and continues to pursue specialty value-added opportunities. His focus is on always creating win-win scenarios and fostering long-term relationships. Learn more

Aaron Fulcher

Contractor, Basecamp Construction

Mr. Fulcher has a passion for helping people navigate their real estate journey. He has been specializing in buying, remodeling, and selling residential properties since 2012. To date, Mr. Fulcher has helped hundreds of clients remodel their dream homes.

Next Steps

Critical Dates

PSA Executed

June 17th

Funds Due

June 27th

Close Date

July 2nd

How To Invest

Call, email, or text either James or Lawrence expressing your interest. We'll sign a promissory note, and our escrow officer will send you the wiring instructions.

The promissory note will be with the following terms:

Frequently Asked Questions

How do I invest in the deal?

Let James or Lawrence know. We'll sign a promissory note, and our escrow officer will send you the wiring instructions.

Can I invest using a self-directed IRA?

Yes. Investments are accepted via 401K/IRA funds.

What is the minimum investment/loan?

$40,000

Where do I find the banking wiring information, and where is this entity located?

The wiring information is provided after we sign the initial note agreement. If your bank asks, the entity's location that will purchase the property is in Lebanon, OR.

When will the loan be paid?

You will be repaid, including interest, after the property is resold.

How much are the Sponsors investing in the deal?

The Sponsors are providing the earnest money ($100) and will provide any additional funds required to either complete the project or make sure investors are fully paid.

What does a minimum return of 6% mean?

This means you'll earn at least 6% on your money, even if we complete the project in less than 6 months. For example, if we finish in 4 months, you'll still receive 6% instead of 4%. That will increase your effective APR to 18%.

If the project takes longer than 6 months, you'll still receive 1% per month (or 12% APR). It's our way of ensuring you still receive a good return even if the hold period is extremely short.

What is the projected hold time?

6 months. The property is already vacant. We'll take 3 months to rehab the property, market it for 2 months, and 1 month for contingencies.

This document contains privileged and confidential information, and unauthorized use of this information in any manner is strictly prohibited. If you are not the intended recipient, please notify the sender immediately. This document is for informational purposes and is not intended to be a general solicitation or a securities offering of any kind. The information contained herein is from sources believed to be reliable, however, no representation by Sponsor(s), either expressed or implied, is made as to the accuracy of any information on this property, and all investors should conduct their own research to determine the accuracy of any statements made. An investment in this offering will be a speculative investment and subject to significant risks; therefore, investors are encouraged to consult with their personal legal and tax advisors. Neither the Sponsor(s), nor their representatives, officers, employees, affiliates, sub-contractors, or vendors provide tax, legal, or investment advice. Nothing in this document is intended to be or should be construed as such advice.

Potential investors and other readers are also cautioned that these forward-looking statements are predictions only based on current information, assumptions, and expectations that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by such forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, such as “may,” “will,” “seek,” “should,” “expect,” “anticipate,” “project, “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. These forward-looking statements are only made as of the date of this executive summary, and Sponsors undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

This document further contains several future financial projections and forecasts. These estimated projections are based on numerous hypothetical scenarios, and the Sponsor(s) explicitly makes no representation or warranty of any kind with respect to any financial projection or forecast delivered in connection with the Offering or any of the assumptions underlying them.

This document further contains performance data that represents past performances. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data presented.

All return examples provided are based on assumptions and expectations in light of currently available information, industry trends, and comparisons to competitor's financials. Therefore, actual performance may, and most likely will, substantially differ from these projections, and no guarantee is presented or implied as to the accuracy of specific forecasts, projections, or predictive statements contained in this document. The Sponsor further makes no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown in the pro forma or other financial projections.

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