3210 Bellevue is sold

We finally sold the last Fund 1 property yesterday and I thought I’d take the opportunity to share the (unaudited, unofficial) numbers:

  • Purchased 5/23/2013 for $690,000
  • Spent ~$410k renovating (including all fees to Adaptive)
  • So, all in for $1.1MM
  • Took in ~$40k from rents while we owned it
  • Sold 10/9/2014 for $1.42MM
  • Net sale proceeds of ~$1.32MM
  • Profit of ~$260k on $1.1MM
  • ROI of 24% in 17 months

As on the other Fund 1 deals, we did not use any leverage. That had the effect of hurting the ROI but, obviously, reducing the risk.

When Jon and I set out to raise Fund 1, we had no idea if we were actually going to be able to get the money together. There was no Adaptive brokerage or property management team. There were no fee-for-service deals. In fact, none of the people who now make Adaptive so awesome were with us yet. It was just Jon and me in a tiny office on 7th and Grand Downtown.

We went out and asked friends and family if they would invest with us. A bunch said “no”. Some said “yes”. And some people who are savvy investors but who were not then friends of ours said “yes”, too. It wasn’t that much money ($3.57MM), but it was enough to build a business.

Now, exactly two years later, it feels really great to be able to go back to those investors who believed in us, hand them their profits (they already got back all their capital) and say, as I always do in every single letter I ever write them, “Thanks for trusting us with your capital” and to know that that trust was rewarded.