All Forum Posts by: Micah Shelton

@Thomas Jackson

As for profits on this one. We ended up netting around $30k total which I share with my GC at a 60/40 rate. I also take 2% on the selling side of the real estate deal. Overall project took about 6 weeks of Reno and only a 3 week close.

@Steve B. I wish it was only 10k. That was my contribution overall to the project. By using a mix of investor money and hard money I limit my personal capital. I do invest my time in every project which I’m working on decreasing as well.

As for profits on this one. We ended up netting around $30k total which I share with my GC at a 60/40 rate. I also take 2% on the selling side of the real estate deal. Overall project took about 6 weeks of Reno and only a 3 week close.

@Jordan Sparks and @Sean Robertson this is in McMinnville just across from Linnfield college. I will update with some after photos once the project is done as well!

Shaun, wondering what the status is on this home...just saw the post. Sorry for the delay

@Sean Robertson yeah definitely my back up contingency plan. Great area and would make for a great rental.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $300,000
Cash invested: $10,000
Sale price: $453,000

Wholesale deal on a 3 bed 1 bath with detached garage in great SE Portland location

What made you interested in investing in this type of deal?

Home was in fairly good shape and had some significant upgrades (windows, solar panels, and roof). Home just needed some serious e updating and clean up

How did you find this deal and how did you negotiate it?

wholesale dealer in the Portland metro area

How did you finance this deal?

I used $50k from a private money lender at a flat 8% rate (so paid them $4,000) on the money with no points and no payments through project. I used their money for the down payment, fees with the hard money loan and about $10k in renovations. I then took a hard money loan out for the purchase and renovations.

How did you add value to the deal?

We completely updated the home. New kitchen, bathroom, paint in and out, re did the hard wood floors, landscaping overhaul.

What was the outcome?

took about 2 months to renovate and sold the first weekend for over asking (which was more than we anticipated listing for) and for cash through flyhomes (google them if your buying a home, they turn your offer into a cash deal...interesting and quick)

Lessons learned? Challenges?

Pad your numbers. we went about 20k over budget but listed for $25k more than expected soooo it worked out but we rolled the dice. Also, depending on area sewer scope prior to purchase. We ended up having to replace the line which we had not budgeted for and could have negotiated at the beginning.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Lending home was the hard money lender and I was the real estate agent through John L Scott Portland...

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $230,000
Cash invested: $10,000

Standard cosmetic 3 bed 2 bath home in up and coming wine country area about 45 min from Portland, Or
Going to be putting in roughly $35k and selling for $325k when done

What made you interested in investing in this type of deal?

Great neighborhood, close to schools, and the home really just needed cosmetic clean up

How did you find this deal and how did you negotiate it?

Wholesaler brought it to me. There was no negotiating the price. They offered it at $230k and stated if I didnt want it at that price they would send it out their other investor pool. I could have waited to see if it sat for a week or so and maybe shaved off 3-5k but the numbers for us made sense at the asking price

How did you finance this deal?

I used private money investor for the down payment and inital fees (paying them a flat 8% on borrowed monies ie: borrowed $50k owe them $4k at end of project, no fees and no payments) Then I used hard money to fund the purchase and renovation costs

How did you add value to the deal?

I am a realtor so that helps when we go to sell the home. Adding value to the home was easy in that it needed new flooring, paint, vanities, kitchen cabinets/counters, and landscaping.

What was the outcome?

Still in progress...TBD

Lessons learned? Challenges?

Home is an hour from my personal home and my GC partner. we were fortunate that our contractors were willing to travel for the work (cost us a bit for travel time)

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Lending Home (Dane Fitch) on the hard money side of things

I bought two houses through Jeff and north peak and I can honestly say he is true to his words. He helped me through the process and mine had hiccups too. When I needed someone to go by and look at the work being done...he was there. They don’t all go smooth but having honest hard working ppl on your side makes it all work out in the end. Keep up the good work. And please post more of your expertise. We would all benefit. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $262,000
Cash invested: $90,000

Single family 4 bed 2 bath home. We fully renovated the kitchen and baths, new floors, windows, paint in/out, plumbing and electrical updates. Garage needed all new roof supports as they had been modified by prior owner.

What made you interested in investing in this type of deal?

I have flipped 10 homes in the Portland area to date. Prior to this deal Portland was in a low inventory situation which made finding distressed homes, cleaning them up, and then re-selling pretty smooth.

How did you find this deal and how did you negotiate it?

This house was brought to me by a wholesaler in our area. Price was firm.

How did you finance this deal?

I used some private investor funds to pay the down payment on the hard money loan (2pt and 12%APR terms) I then used $45,000 of a personal HELOC loan and an additional $50,000 form another private money investor to fund the renovations.

How did you add value to the deal?

As a realtor Im able to find and list our renovated homes. In addition I assist in some of the renovation work through the process.

What was the outcome?

This one has proved tricky. All in with realtor fees, investor payback fees, and loan fees we are all in at what the home is currently listed for. The project took 2 months longer than planned due to some structural repair needs on the garage roof, additional plumbing work. Normally we can get a property re-listed in 3 months from start date, this one was 5. That landed us right before Christmas (not ideal). Our initial ARV for the home was going to be $379,000.

Lessons learned? Challenges?

Make sure to plan for the unexpected, dont be afraid to drop the price. Sometimes a loss is just inevitable.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I have had great success with Dorrie Gengler from Old Republic Title in Clackamas OR...She has been Great.
Also Todd Williams from Umpquah Bank is a great lender resource for a local bank.

Thank you to everyone for the input. I appreciate all the help and suggestions. I have two meetings with some agents from the area to get their assessment and take on the home. Most likely swallow my pride and drop the price to move it. Feedback on the home has been great, yard has been the only drawback. @Matt Urbas the door has been everyones favorite feature....to each his own.  @Adam Walter plants are needed for sure . Been so cold here of late we just didn't want them to die.