All Forum Posts by: Shane Martin

Investment Info:

Single-family residence fix & flip investment in La Pine.

Purchase price: $250,000
Cash invested: $60,000

This unique single family ranch is currently under construction. We'll be listing somewhere between $425 and $450 when completed. The house is bizarre and totally primed for some really cool design concepts. Originally built in the 80's and added onto twice, that we know of. The floor-plan keeps you on your toes. With some rustic meets modern finishes and some attention to the cozy character of the structure itself, this one is going to make a great home for a growing family.

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

It's odd! Also, the market in La Pine suggests that, a larger ranch style home with a big lot and a huge shop, should be eagerly sought after. That and I found out that no one else had even inquired about it. There was this big scary question mark surrounding the lack of water from the well to the house itself. I did the math and realized that even a total overhaul of the plumbing system in the house would still allow for this deal to work so I pursued it.

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

I found this one on craigslist. The negotiating process was as simple as making a lot of consecutive offers. Because the house was HUD owned and we happened to be the only ones making offers, it was a matter of time before we met in the middle.

How did you finance this deal?

Cash with the help of some great partners. We are currently under construction and getting ready to close on a cash-out refinance that will get all of our money back out there hunting more deals for us!

How did you add value to the deal?

We are redoing everything! New kitchen, baths, flooring, doors, appliances, plumbing and lighting fixtures! We are focusing on tying three different additions into one harmonious home.

Oh, and that plumbing disaster... it was just a broken valve between the well and the home. A $50 part and we are back in business!

What was the outcome?

I'll let you know when we get to the finish line!

Lessons learned? Challenges?

Analyze your deal based on the worse case scenario and have a plan B. If it doesn't work, walk away. And if you feel like you have something make the offer and get it under contract! The money will follow.
If we end up completely underwater with tis one. We know that we can support the property as a rental. We'll sit on it for a while and build some equity.

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

Always. You cant do this alone! Treat your professionals as if they are partners. They are the ones who will get it done!

Reach out if you would like a name or two!

@Asif Karmally this was the first one and it was basically a happy accident!  You can bet I'll be keeping my eye open for others like it though!

Investment Info:

Mobile home fix & flip investment in Bend.

Purchase price: $165,000
Cash invested: $25,000

We found this property off market. The original plan was to remodel the unit and get a renter settled. Then we would go to work converting the detached 500sq. ft. garage into an ADU. Once the remodel was finished the market went nuts and we realized that we could make a quick sale and reinvest the profits in a market that would get us more bang for our buck. We're currently looking at a small mobile home park!

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

I heard a bigger pockets podcast about flipping manufactured homes and really wasn't very interested in the idea. Almost immediately after, our seller called us and asked what we thought his home was worth. I went to meet with him and the wheels started turning once I saw the property in person.

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

This seller called us back after receiving a hand written letter. He expressed that he had been falling behind financial and that he wanted to relocate to a warmer climate. I worked with him to get a better understanding of his situation and structured a win win deal. We paid his outstanding balances and half of the agreed upon cash offer at closing and he continued to live in the home for one month while he found his new forever home. When he moved, we gave him a check for the balance!

How did you finance this deal?

I found an equity partner who I will be doing many more deals with.

How did you add value to the deal?

We installed a new roof, new flooring, lighting and plumbing fixtures, resurfaced countertops and painted the walls and cabinets.

What was the outcome?

A beautiful home on a half acre in Bend, Or proper! We have it under contract for $285,000

Lessons learned? Challenges?

Get your permits! I made the mistake of not getting a permit for the new roof. I should have known better, and now I have an extra headache to deal with before COE.

Investment Info:

Single-family residence fix & flip investment in Terrebonne.

Purchase price: $190,000
Cash invested: $50,000
Sale price: $360,000

This single family home was a tough one. I made my first offer in January of 2020 and it had been rejected. Months later, I resubmitted my offer and it was finally accepted.
The sale was very distressed and we had to work very closely with ours and the sellers agent to navigate the tricky legal and emotional waters that the sellers were dealing with. In the end, I think we were able to really help the seller get through a tough situation and we were able to realize a nice profit.

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

I am a contractor by trade, so a fix and flip deal was something that I could wrap my head around.

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

I found the deal on craigslist. I realized that I knew the listing agent and we started the process. I was made aware of the sellers situation and made the first priority to try tov solve their problem by buying the home. It took a long time to earn their trust but we were able to come together in the end.

How did you finance this deal?

Hardmoney

How did you add value to the deal?

We remodeled the entire home, made some fundamental repairs, and replaced the roof.

What was the outcome?

A home-run of a deal!

Lessons learned? Challenges?

You cant do this kind of work on your own. It takes a village to make a successful deal play out according to plan.

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

Absolutely. I'd be happy to share contacts.

I am new to the world of real estate but I have been in residential and commercial construction as an employee and a business owner for my entire adult life, so real estate investing, to me, seems like the obvious next step.  What I plan to do over the course of the next several years is automate my construction company to a point where I am no longer "Self Employed" but rather just a business owner, while simultaneously building my real estate investing business.  I have the plan but, learning from my mistakes in the past, I do not have the team of professionals to assist me with this lofty goal.

My question to anyone who has a thought on the subject is this.  Where would you start in searching for the right attorney, accountant, and real-estate agents for your investing business?  

Hi Kyle,

Here are my two cents....

La Pine gets a bad wrap around here but the reality is, most of us non-native Central Oregonians relocated here for the mountains, the rivers, and the 300 days of sunshine every year.  In my opinion, La Pine is under rated and it has a great deal to offer when it comes to that criteria.

Bend is of course the ideal spot around these parts but at the end of the day, its getting crowded and most of us have a hard time finding ways to afford property, especially with any acreage.  La Pine is maybe stuck in time a bit but its certainly has plenty to be enjoyed.  I think your friend ought to invest some time into what sort of amenities they need for their lifestyle and go from there.  If living a bit further out in the country is their prerogative then La Pine might be the place.

Shane