Embedded Files
361 N 3rd St
Executive Summary
Executive Summary
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Deal Story
Deal Story
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Construction Plan
Construction Plan
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Deal Highlights
Deal Highlights
Purchase
Price
Purchase
Price
$200K
$200K
Build / Holding
Costs
Build / Holding
Costs
$314K
$314K
After Repair
Value
After Repair
Value
$380K
$380K
Hold
Period
Hold
Period
12 mo
12 mo
Investor Capital
Needed Today
Investor Capital
Needed Today
$90K
$90K
+$152K In ~3 months
Investor Loan
Annual Rate
Investor Loan
Annual Rate
12%
12%
Minimum return of 6%
A $35K Loan
Returns
A $35K Loan
Returns
$2,100
$2,100
Sources of Funds
Sources of Funds
PHASE 1
Hard Money (HML) $170,000
Investor Note $90,000
Total $260,000
PHASE 2
New HML $162,000
Add'l Investor Note $152,000
Total $314,000
Uses of Funds
Uses of Funds
PHASE 1
Purchase Price $200,000
Acquisition Costs $7,000
Stabilization Costs $44,500
Mortgage Payments $8,500
Total $260,000
PHASE 2
Phase 1 Deficit $32,000
Site Pre/Finish $54,000
HiLine Build $186,000
Reserves $24,000
Mortgage Payments $18,000
Total $314,000
+ Investor Interest $24,000 (12% APR for 12 mos)
Total Project Cost $338,000
Key Dates
Key Dates
Closing Date
Closing Date
Aug 21st
Funds Due
Funds Due
Aug 21st
Rehab Begins
Rehab Begins
Aug 24th
Contents
Contents
Property Overview
Property Overview
Facts and Features
Facts and Features
Size: 1,199 SF
Beds: 2
Baths: 1
Year Built: 1920
Lot: 0.27 AC / 11,761 SF
Water/Sewer: City
Heating: gas wall heat
Lebanon
Lebanon
Lebanon, Oregon sits on the eastern edge of the Willamette Valley in Linn County, about 15 miles east of Albany and 20 miles east of Corvallis. Known as the "Strawberry Capital of Oregon" and anchored by Samaritan Lebanon Community Hospital. Its affordability relative to Albany and Corvallis keeps drawing buyers who want small-town character with easy access to bigger-city jobs, shopping, and services. Population growth is outpacing many similarly sized mid-valley cities, and has a persistently tight housing supply.
Population: ~20,600 as of 2026, growing at roughly 1.75% annually. It's one of the faster growth rates among nearby mid-valley cities.
Employment: Employed residents grew 1.78% from 2023–2024 (8,750 to 8,900). Health Care & Social Assistance, Retail Trade, and Manufacturing lead job counts.
Median Household Income: $63,176 in 2024, up 11.3% from $56,740 the year before.
Housing: Median sale price ~$400,000, up 11.1% year-over-year, with homes averaging 87 days on market. There's a tight enough supply to support both a resale flip and a new build on the same lot.
Additional Resources
Additional Resources
Business Plan
Business Plan
Phase 1: Lot Split
Phase 1: Lot Split
We'll split the lot into two parcels — one keeping the existing home, one a clean buildable lot for the new build.
Pre-application meeting with the City of Lebanon to confirm zoning and split feasibility.
Hire a surveyor and land-use consultant to prepare the tentative partition plan.
Submit the Type II partition application — a staff-level decision, no hearing required.
Satisfy any conditions of approval (easements, right-of-way, utility hookups).
Record the final plat with Linn County, creating two legal parcels.
Risk: Delays or denial in the split could hold up both exit strategies.
Mitigation: Pre-app call confirmed feasibility. Will hire an experienced surveyor. Plan B is to sell as a single lot if the split stalls.
Phase 2: Build A New Home
Phase 2: Build A New Home
Home Plan 984 comes in at just under 1,000 square feet. This home has 3 bedrooms, 2 bathrooms, and a single-car garage. Plan 984 provides amenities that are hard to find in a smaller footprint.
Example 984 home
Construction Plan & Budget
Construction Plan & Budget
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Risks & Mitigations
Risks & Mitigations
1. Lot Split Delays or Denial
This deal only works if the partition goes through — both exits depend on it.
Pre-app meeting with the city before closing, in writing, not a verbal thumbs-up.
Surveyor engaged from day one.
City quoted 4 weeks; we're underwriting 8. If we're past 8 weeks with no decision, Plan B is selling the property whole rather than bleeding holding costs waiting on the split.
2. Cascading Delay Risk
This is sequential, not parallel: the new-build parcel doesn't legally exist until the plat records, so a slow partition delays construction too, not just itself. A late split isn't a self-contained delay; it's a delay plus whatever it does downstream to the build.
Partition underwritten at 8 weeks (double the city's 4-week estimate), not the optimistic case.
HiLine is told this is a lot-in-process, not a lot-in-hand, so a slip on our end doesn't cost us our place in their build queue.
Investor note maturity is set with this compounding risk already priced in.
3. Unknown Conditions / Rehab Overruns on the Existing Home
Older homes hide things that don't show up until walls are open.
$3,400 rehab budget, plus a separate $4,000 reserve — more reserve than working budget, well above a standard 10% contingency.
Scope is deliberately light-touch (lendable, not remodeled) — we're not betting the return on cosmetic upside.
4. New Construction Cost Overruns or Delays (HiLine)
Ground-up builds carry more variables than a rehab: weather, permitting backlog, subcontractor availability, material pricing.
Fixed-price HiLine contract covers the base build. Our exposure is site prep, finishing, and holding costs, not the structure itself.
Winter-sensitive work scheduled for the optimal weather window.
Contingency held outside the HiLine contract for anything the pre-build inspection doesn't catch.
5. Two Homes, One Submarket
We're exposed to Lebanon's market twice, at two price points, in the same window. If it softens, both exits take the hit together.
Both ARVs underwritten against current comps, not projected appreciation.
Different price points and buyer profiles. The existing home sells first as the lower-priced resale, the new build lists later, so we're not competing with ourselves.
Rental is the fallback on either property if a sale drags.
6. Buyer Financing Falls Through
Two closings means two chances for a buyer's financing to fall apart.
Lender pre-approval required before accepting any offer, either property.
Active buyer/agent pipeline built before each listing goes live.
Flexible closing timelines so a financing hiccup doesn't collide with our own note maturity.
7. Extended Holding Costs
Every delay above compounds here.
Interest and carry costs underwritten against the padded (not best-case) timeline from the start.
10% of investor capital held back as a dedicated holding-cost reserve.
If either property is on market a month past target with no closing in sight, we revisit pricing immediately rather than wait it out.
Financial Projections
Financial Projections
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Financial Dashboard
Financial Dashboard
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The Team
The Team
James Furlo
James Furlo
Sponsor
Sponsor
After getting his MBA, Mr. Furlo started working for HP Inc. and actively investing. Over the last 16 years, he purchased over $8 million in real estate. His investments include 14 properties that span apartments, storage, and warehouses. He's also a limited partner in a 112-unit development project. Read his one-page resume
Lawrence Potts
Lawrence Potts
Sponsor
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
HiLine Homes
HiLine Homes
Home Builder
Home Builder
Hiline Homes is a trusted Pacific Northwest homebuilder specializing in high-quality, ground-up construction that blends thoughtful design, durable materials, and local expertise. With decades of experience and a commitment to energy-efficient, well-crafted homes, Hiline delivers properties that stand the test of time while meeting the needs of today’s buyers. From foundation to final finish, every project is built with integrity, transparency, and a focus on long-term value for both homeowners and investors. Visit their website
Next Steps
Next Steps
Critical Dates
Critical Dates
Closing Date
Closing Date
Aug 21st
Funds Due
Funds Due
Aug 21st
Rehab Begins
Rehab Begins
Aug 24th
How To Invest
How To Invest
We are accepting $70K in investor notes (minimum $35K) and an additional $200K in ~3 months. If you’re interested, reach out, and we’ll reserve your spot and send documents.
The promissory note will be with the following terms:
Loan Amount: Minimum of $35,000
Interest Rate: 12% annual, minimum of 6%
Payments: A single payment shall be made on the date of resale on or before the expiration date.
Loan Length: 1 year
Deed of Trust Security: 316 N 3rd St, Lebanon OR
Guarantors: James Furlo and Lawrence Potts
City and State of Execution: Lebanon, OR
Frequently Asked Questions
Frequently Asked Questions
How do I invest in the deal?
How do I invest in the deal?
Let James or Lawrence know. We'll sign a promissory note and send you the wiring instructions.
Can I invest using a self-directed IRA?
Can I invest using a self-directed IRA?
Yes. Investments are accepted via 401K/IRA funds.
What is the minimum investment/loan?
What is the minimum investment/loan?
$35,000
Where do I find the banking wiring information, and where is this entity located?
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?
When will the loan be paid?
You will be repaid, including interest, after the property is sold.
How much are the Sponsors investing in the deal?
How much are the Sponsors investing in the deal?
So far, the sponsors have put in $2,000. This covers closing costs and the funds to start the lot split.
What does a minimum return of 6% mean?
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?
What is the projected hold time?
12 months. The lot split and house sale should take 3 months. Then we'll start construction of the new house. We build in buffer time for delays and marketing/selling the property.
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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