All Forum Posts by: Account Closed

Investment Info:

Other other investment in Sunriver.

Purchase price: $21,000
Sale price: $35,000

This was a tiny house build. I built a 300 sqft tiny house for my family and me to live in. After living in it for 2 years we rented the tiny house on Airbnb for about $85/night. After doing long distance Airbnb for 2 years I decided to sell it to use the money for other investments.

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

I built this tiny house to save money on rent and to live in for as long as we could.

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

I built this tiny house so I was in charge of how much I wanted to put into it.

How did you finance this deal?

I paid cash as I built the house which took me a year to build.

How did you add value to the deal?

After we moved out I found out I could rent it on Airbnb and make a good side income.

What was the outcome?

After renting it long distance on Airbnb for 2 years I decided to sell it in order to avoid traveling and to use the money for other things.

Lessons learned? Challenges?

I could have sold it for more if I was more patient.

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

No

Investment Info:

Other fix & flip investment.

Purchase price: $11,000
Cash invested: $20,000
Sale price: $85,000

This was a bare 10-acre land purchase that we built a small recreational cabin on. We then rented out part of the land to a local grower who invested in a greenhouse and placed it on the land. We partnered with the grower to sell this land and the adjacent land. Our part of the sale was $85,000.

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

This was originally a land purchase for us to build a small recreational cabin on.

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

I found this land on craigslist. The owner was selling it and offering owner financing. Since it was a good price with owner carry terms I took the deal as is.

How did you finance this deal?

The owner offered an owner carry note. It was around $1000 down with a 5-year note at 7% which we paid off early.

How did you add value to the deal?

We added value by improving the land and building a small recreational cabin. We spent about $20,000 on improvements. After the 1st year, we made rental income by renting part of the land out to a local grower. The grower added improvements to the land in exchange for lower rent.

What was the outcome?

The grower was interested in selling his business so we partnered with him to sell the land and his business. He sold his business for over $100,000 and we sold our land for $85,000.

Lessons learned? Challenges?

I would have filed a 1031 exchange and reinvested the money from the sale to buy another property to avoid paying taxes.

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

No

Investment Info:

Other fix & flip investment.

Purchase price: $11,000
Cash invested: $20,000
Sale price: $85,000

This was a bare 10-acre land purchase that we built a small recreational cabin on. We then rented out part of the land to a local grower who invested in a greenhouse and placed it on the land. We partnered with the grower to sell this land and the adjacent land. Our part of the sale was $85,000.

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

Our original plan was to build a small cabin for ourselves and use the property recreationally.

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

I found this deal on craigslist for a person who was doing an owner carry deal for his 10-acre lot. Since the price was low and he offered good financing I accepted his listing price.

How did you finance this deal?

Owner Carry, $11,000 purchase price. $1000 down and a 7% interest rate over 5 years.

How did you add value to the deal?

We built a small recreational cabin and then rented the additional land to a local grower who added improvements to the land since the rent was so cheap.

What was the outcome?

$50,000 gain on the sale.

Lessons learned? Challenges?

I should have done a like for like exchange (1031) in order to avoid taxes on the sale and to reinvest into another property because we eventually bought a bigger piece of land with the profit from that sale.

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

No

It's not really a percentage because it can be a different percentage based on different variables. Depending on the lender and the state, these are out typical closing costs with our branch in Oregon.

• Processing Fee $475
• Underwriting Fees $465
• Loan Administration $380
• Appraisal $675
• Recording Fees $364
• Settlement Fee, Owners Title insurance, Lenders Title insurance, Title Endorsement (you can usually get a quick quote from a local title and escrow website.

This does not include prepaid and reserves. Prepaids are upfront costs of mortgage insurance premiums(usually a percentage of the loan) if required and taxes and homeowners insurance if you are including those in your monthly payment. So the cost of your taxes and homeowners insurance factor into this. 

Its best just to get a quote from a local lender since there are too many factors to try to guess. For most homes, the typical closing costs have been about $5-$6k not including prepaid items. 

I work with Jesse Lepez in Redmond he is very knowledgeable about repairs and loan requirements when going into homes.