Sharewell Housing
Investment Opportunity

McCulloch Construction Corporation & the McCulloch Foundation, a 501 C3 Non-Profit
Call, text or write John: M: 503-709-0035 E: john@mccullochconstruction.com

Executive Summary

Here at the McCulloch Foundation, we are building affordable housing through a new model called the Sharewell home; we need your help to make an even bigger difference! 

We have been expanding the model, doing more and more good with only the profits from McCulloch Construction donated to this worthy cause.  

Now we are asking others to invest in the Sharewell model, scaling up to serve more people in need. 

Continue Reading Executive Summary

Affordable Housing, made available to those who need it most, changes lives. 

Independent companies can create better affordable housing at higher volume and lower cost than charities or government projects.

Though we have been active in philanthropy for decades, we have seen that most charities lack the power of modern business. By partnering our non-profit with our business enterprise, we have the formula to make the greatest impact investing for social good possible.

We have invented the Sharewell Model to yield the greatest societal good per dollar. 

We remodel existing housing, saving hundreds of thousands over the cost of comparable new builds. Our homes center around a shared kitchen, laundry, and common areas, for  additional savings and functionality.

Our Sharewell properties house those with common interests to forge community and belonging. We have identified demographics where we can make the greatest difference. These populations have the budding potential to benefit most from a hand up, rather than a hand out. They can also continue to pay modest rents, even in a downturn.

As with all real estate, it is not only the cost of rents, but a question of location and quality that determines the overall success of an investment. While other housing can be lucrative while the market is high, affordable housing is right for the recession; a safe investment regardless of market fluctuations.

Our properties are selected for the best locations; we are able to identify below market pricing and buy quickly. All homes are remodeled with quality, durability, and craftsmanship in mind.

Thirty years of running a lean, real estate investing and remodeling business was our path to unmatched efficiency. When you invest with our foundation, your dollars do more social good than anywhere else.

If you are an accredited investor (supported by your CPA), you are invited to join John McCulloch, the McCulloch Foundation, and McCulloch Construction to invest in our next Sharewell Housing venture: 38 Briarwood Rd. Lake Oswego OR, 97034.

Realtors

Realtors have the power to help with affordable housing for those in need!  A Sharewell House is an existing house that our firm converts into shared housing. You sell the house, by finding an investor to buy it. The investor puts their name on the title for 7 years, and gets a steady flow of 2/3rds of the rents.  At the end of the period the investor gets their initial money back, having made a good return, yet also having helped those in need.

Continue Reading Realtors

You can sell a Sharewell just like selling any house.  It is an investment opportunity for your buyer, but it is still a property and not a stock. Because their name goes on the title, and they own the property, (even though it is in partnership), the usual rules apply.

In turn, you will receive a commission of 1%, ($5,000) if you bring a buyer to invest  $500,000,  or 1.5% if you bring a buyer who puts up $750,000, ($11,250).  If they invest more than the $750,000 you will be compensated at the 1.5% rate.

You will be putting your investor onto a safe investment that does a great social good. You will be helping to create affordable housing at a time when we all need to do our part!

Sharewell Housing: An Industry Game-Changer

The Sharewell House Model A new model for long-term affordable housing to head-off the homeless emergency upstream, for maximum impact. The best tool for addressing the challenge of homelessness: Sharewell housing is a ladder to success, rather than creating a dependency. Individuals in a Sharewell house face similar challenges, and help each other to build supportive communities and economic success.

Continue Reading Sharewell Housing: An Industry Game-Changer
Economic Hard Times Equal Investment Opportunity

The downturn is a lifetime opportunity to buy properties at low prices, optimizing impact and investment.

Time for a Low Risk, Conservative Investment A downturn is not time for high risk investing. Speculative investments, the stock market, bonds, and even savings accounts can offer inconsistent returns at best and negative returns at worst. The safe, predictable, and nearly recession-proof property investment with the Sharewell model is the safe investment now.

Shared Housing is the Answer During the Great Depression, boarding houses were a huge growth industry. Now is the time to expand its ethical modern counterpart: The Sharewell Model.

You receive Monthly Cash Flow The Sharewell yields a monthly return through rents, and backed by real estate, with the security of your name on the title.

Ultra Low Risk Affordable housing is in demand no matter the state of the economy. Do your part to help others, while not diluting the power of your wealth to make a difference by seeing it used up in less skillfully managed efforts.

Vacancies are in proportion to rents per door. Because Sharewell rents are among the lowest in the greater metropolitan area, vacancies are quite rare.

Sharewell Investors: No responsibilities, virtually no liabilities Being a landlord can be tough. With the Sharewell Model, all of the property management and population services are handled through our non-profit, keeping you, the investor, untroubled with managing renters and the issues that sometimes accompany landlording. Investors are in an LLC, arms-length from renters. Further, the LLC does not manage populations or property directly, but contracts through the McCulloch Foundation, thus enjoying a second layer of protection.

Sharewell Investors Enjoy the Peace of Mind of Real Estate Backed Investment As an investor, your name is on the title. Real estate is the safest hedge against inflation available in an economic downturn. Your investment is secured by real estate.

Proven Track Record Other completed Sharewell properties are already up and functioning, with years of cash flow, low turnover, and increasing numbers of happy stories for the community.

Sharewell communities thrive through extremely low rents for quality housing in safe communities. Today, we have eight million dollars in our portfolio, and are on schedule to have placed roughly 50 individuals in our high-quality affordable housing.

Simple Investment Most real-estate investments are a complicated mixture of contractors, architects, corporate partners, and multiple properties with upside projections and unclear accountability. Your Sharewell investment is focused on one property at a time. Every step of the way, you can track detail. You have access to weekly cost reporting, regular site visits during the project, and monthly reporting after the project is completed.

The Root Cause of Unaffordable Housing… Turned into the Solution No discussion of homelessness or affordability is complete without encompassing income disparity.

As income disparity grows, prices climb driven by affluent spending. When the wealthy spend on housing, housing costs increase for everyone. Homelessness grows faster when the economy is healthy because top earners drive up housing prices. While more taxes have been proposed as a necessity to make housing affordable, our approach is far more targeted.

TheSharewell Model harnesses the root of the housing problem, income disparity, by providing those with the means the opportunity to invest in a high-quality, affordable housing option for those earning at or below the poverty level. 

When philanthropists invest in housing with a modest return of 4%, it is a safe portfolio diversification without an unsustainable, ever-growing profit goal.

While capitalism is the ultimate engine for change; unbalanced, it concentrates wealth in fewer hands, eliminates the middle class and creates an expanding working poor.  Sharewell investments rebalance the system to make entry level housing possible.

Accountability:

With McCulloch Construction finding the property, and doing the remodel, and the McCulloch Foundation managing the property, you have one point of accountability: John McCulloch, real estate investor, general contractor, architectural designer, and founder of the McCulloch Foundation. John has been doing design, remodeling, and real estate investment for more than 25 years. He is responsible for seeing that your project is on time, on budget, and created with quality and beauty .

About John McCullochYou are teaming up with an individual you can trust. Typically investments require faith in corporations with unknown casts of managers, board members, and other decision makers.

With real estate investments, as with the stock market, there is little accountability or visibility into how they are run. With our investment, the buck stops with John McCulloch, designer, remodeler, acquisitions, founder of McCulloch Construction and McCulloch Foundation, and someone with his own money and reputation on the line with your investment.

“My heart is in the community. For four generations, the McCullochs have prospered in Portland and Oregon. Every generation since the 1800’s has named their oldest boy John, has lived in Irvington, and has given their time and treasure to help the community. I have reached the stage of life where I aspire to projects that serve the greater good. I have enjoyed working on more beautiful and significant projects than I could have ever dreamed possible and have worked on over 1,000 homes. I have been a teacher and a coach to thousands of Oregonians.  

I am fortunate to have the gift of being the leader of a spectacular team specializing in design, remodeling, affordable housing creation, property management, real estate investment, and development. These are the best skills to make a lasting difference! 

In over 1,000 renovations and investment projects, zero lawsuits, zero bad press. Living in the same neighborhood for four generations, the McCullochs understand reputation, and our decisions stand the test of time. I am offering to share a good investment to magnify the social good we can do together.  When you join forces with me, you know we will do business with integrity, leaving people and things better off than we found them.” 

Touchstones

1. Mission

Our mission with Sharewell is to serve vulnerable populations by not only housing them, but by forging them into communities for greater success. The Sharewell Model is shared housing with a double community: inside, populations help each other; outside, volunteers meet with our residents  and offer coaching and help finding resources.

Continue Reading Touchstones

We see a role for a recreation of shared housing, with modern amenities, communal engagement, and thoughtful management. We believe the Sharewell model will translate into success for renters as well as owners.

Refurbishing existing housing stock is far cheaper than building new, and shared housing means yet lower cost per door. It can also mean a community where people can help each other.  In a Sharewell similar groups of people overcome shared challenges through partnering.  We find them volunteers from the community to help them find resources and to find road maps to success.  

2. Investors

The investor buys into a Sharewell with McCulloch Construction Corporation. McCulloch Construction remodels and modifies the property to reach our goals for affordable shared housing. This can include creating multiple single rooms with attached bathrooms out of a formerly large single-family home. This will allow for many more adults to comfortably rent the space. 

For an investment of $100,000 per door (well below market rate) the house will spin off $5,500 in rents every year.  Where we are able to reduce the door price, the return per door rises. McCulloch Foundation charges 2% on the total amount invested in return for property management and other services. 

The Investor gets a base return of 3% on their money with a 50% share in all profits over the initial 5% return coming in from the rents.  As rents are higher, or as fees are collected, or less remodel investment is required, the profits are shared equally between investor and McCulloch Construction.   

3. Solid Investment

The Sharewell Model has a proven track record and has been serving multiple populations. McCulloch Construction has survived and thrived through past economic hardship. We have the books to prove the health and continuing success over years of affordable housing.    

Our construction company has rock-solid fundamentals, a strong balance sheet, cash reserves, and profits that have been steady for a quarter of a century. Our skilled team is lean, efficient, and capable of the highest quality builds. By partnering with a real estate company with our decades of experience you are putting your money in the safest place possible.  

You get to invest directly into one property as the sole outside investor.  The investment term is seven years with the option to renew. If you choose to invest for only one term, we will refinance the investment based on our entire real estate portfolio, the long rental history we will have in place by the time you withdraw your funds, and on being on the other side of the economic crisis.   

We invest with you. We have skin in the game. Your profits flow in from rents monthly, and are based on exactly how much of the cash investment was yours.  

This is your legacy. Your philanthropic leadership in the arena is an example for your family, for your descendants, and for your community. 

R.O.I. 

The investor gets a 4% ROI as a direct flow from rents. $500,000 returns a profit of $140,000 in seven years of occupancy, with the opportunity to reinvest. $750,000 returns $210,000 in seven years. Other upside cash flow, such as fees or rent increases are to be shared equally between the investors and the Foundation. 

4. Past Success

  • We have had our first Sharewell property up and running for three years 

  • Population: seven young women who could not afford to live elsewhere.  Among them, those who have aged out of foster care.

  • Invested: $650,000

  • Rents: $3,520 per month, $42,240 per year, .64 percent return on investment.  

  • In 7 years, we make a gross profit of $295,680, on $650,000 total investment.  These profits go to supporting the renters in finding greater success, and in growing the model.   

  • This performance is typical of the success of each house in our line of Sharewell properties.

5. Management

The building will be rebuilt with an optimal floor plan to accommodate greater occupancy and children comfortably.  The McCulloch Foundation, a nonprofit corporation, will manage the selection of appropriate tenants and community partners, handle repairs and maintenance, offer events and pay taxes, and other fees. These expenses will be paid out of the rent at a set rate of 2% of capitalization.

The McCulloch Construction company will manage the project at a rate discounted 20% below normal labor costs with free design work, and no markups on materials or subcontractors.   Rents for each property will start at 6% of the money invested. After the McCulloch Foundation collects 2% for a fee for managing the property,  the remaining 4% will go to those who invested with a term of 7 years.  

6. Our Clients:

One of the biggest problems society faces is a lack of community. Yet when a group of people with similar challenges can share resources and work with community partners, their chances improve. 

7. Volunteers: 

Our Sharewell for formerly homeless elders, our volunteers are retirees with advanced degrees in social work. Each Sharewell is two communities: those that live in the house and those volunteers from outside the house who provide support to help our Sharewell renters succeed.  

The populations we help have access to stable income assistance from the government in every economy. This investment in people pays dividends over time, as the non-profits, community groups, and other partners that McCulloch Foundation works with at each Sharewell home are tailored to fit the unique experiences and situations of the populations that they serve. 

8. Risks:

Worst case scenario: You take the home and now you own it. Investors should weigh the possible consequence. The good news is that real estate always has value and always increases in value over the long term. Real estate backed investments are simply the safest way to protect money in a severe recession.

Another risk is that you will happily give of your time as you are joining the Sharewell Family. You will probably become proud of your contribution to changing the lives of the people you are serving by helping to create a Sharewell Home. You may want to meet your renters and help them connect with successful people in the community who can further magnify their successes.  

Site Summary:

We asked local government leadership where we could do the most good. The answer? Lake Oswego has the greatest shortage of affordable housing in the state of Oregon. Our future Sharewell IV sits on a quiet dead-end lane in desirable Lake Oswego.

Continue Reading Site Summary

Neighborhood: High-end Bird Hill neighborhood consisting of new luxury homes, the Historic Emma Austin Home, and valuable waterfront properties. Because the neighborhood dead-ends into driveways in all directions, there is no pass-through stranger traffic. Ours will be the only rental activity. This is a tight-knit, long term, successful and affluent neighborhood. A great place to make positive connections. Minutes to multiple parks, shopping, and less than a mile to the Lake Oswego Library.

Schools: (with Great Schools Rating) Forest Hills Elementary School, K-5, 1.2 miles.

(9/10 Great Schools Rating)

Lake Oswego Junior High School, 6-8, 2.8 miles.

(10/10 Great Schools Rating)

Lake Oswego Senior High School, 9-12, 2.8 miles.

(8/10 Great School Rating)

Tryon Creek State Park: Gorgeous nature reserve with paved and bark trails .25 miles from Sharewell IV.

8-miles of hiking trails, 3.5 miles of horse trails, 3-miles of paved bike trail, and a paved all abilities trail. 8 bridges, Nature Center with interpretive exhibits, Guided hikes, summer day camp, Junior Ranger Program, School Field Trips, Special Events.

Property: 38 Briarwood Road.  On .31 of an acre, just 20 years old, 7 bedrooms, 4 Baths. Zoned R-10, for shared living. A very good buy through a bank forced sale for $462,000.  Zestimate is $924,567, though the real market value is closer to $600,000.

Target Population:

For the Sharewell IV we hope to help single mothers with children ages 4 and younger.

Continue Reading Target Population

We met with all levels of governmental housing leadership  and asked where our efforts would make the highest impact. They told us: Lake Oswego is most in need of affordable housing and single mothers are least able to make it without housing opportunity.

Mothers living together can help each other with childcare, so that they will be able to work, shop, and occasionally take a break from childcare.  Childcare in Lake Oswego costs between 100-300 per week, and is out of reach for many. 

Because Lake Oswego has some of the best schools in Oregon, high potential, academically inclined children may flourish where they otherwise might not in schools that would otherwise be available near affordable housing.  

Kids who are not academically inclined might find this more of a burden than an opportunity.  

By getting the kids into the best schools early, we will have the potential to have the greatest influence on the arc of the trajectory of their young lives.  

Each Sharewell has a second population of volunteers to support them.  This group is not formed yet, but we envision a group of experts on parenting, on financial literacy, on career development, and on healthy living.  These programs are run by the McCulloch Foundation, and supported by the 2% of capitalization on the investment.  

Development Plan:

We will expand this 7 bed, 4 bath home to 11 bedrooms and 6 baths. Mothers will be able to rent individual rooms, so that they will have two bedrooms, or a total of 5 mothers and  6 children.  The outdoor space will be designed as a children’s playground.

Continue Reading Development Plan

We expect the remodel project will cost $350,000.  (Including holding cost). The all-in cost will be about $815,000, or $74,000 per door. 

The rents will be based on 6% capitalization of the 815,000 or $4,445.45 per door per year.  This would cost $370.45, with another $83.33 in taxes or a monthly rent of $454 per room. Mothers would rent two rooms for $908 per month, half of the going rate for affordable housing in Lake Oswego. 

The utilities are on top, although because these are split 5 ways, these are very affordable. 

Investment Mechanics: 

The Investor puts in $500,000-725,000. Investment is limited to one investor per property, in addition to funds supplied by  John McCulloch. Once the space begins to rent out, the Investor receives a flow on each single door rented out, or $20,000 per year on the $500,000, or $30,000 per year on $750,000, which, in either case, is a 4% return on investment.  

Continue Reading Investment Mechanics

The gap between the funds supplied by the Investor and the $815,000 total will be covered by John McCulloch for 4% R.O.I.. 

The remaining 2% collected, (one third of rents), goes to the McCulloch Foundation. With this money, the Foundation will provide all maintenance, insurance, property management, programs and services to build the Sharewell community. 

Estimate of cash flows for the project

Investor Return number is investor cash flow after management expenses. The IRR in this example is 4.77%. This example assumes continuous rents and 2% increase in rent, consistent with inflation.

Timeline:

We bought the property in the final stages of repossession and bank auction for a low price.  We immediately re-roofed it and cleaned up after hoarder.  Visionary floor plans are complete to improve look, feel and increase occupancy.

Continue Reading Timeline
Activities Winter ‘20 Spring ‘20 Summer ‘20 Fall ‘20 Winter ‘21
Acquisition 

Purchase

Investor Capital 

Targeted

Targeted

LLC Formation

Cash Flow Begins

Architectural

Architectural Design 

Complete Plans

Complete Permits

Remodel

New roof

Demo

Remodel

Complete Remodel

Lease-Up 

Curate renters

Fully Leased

Property Selection: 

We met the challenge of helping single mothers with our Sharewell IV project in Lake Oswego featuring  one of the best school districts in the State, and zoned R-10.  We have already improved the neighborhood through the restoration of the Historic Emma Austin House. We saved significantly on the future Sharewell IV by purchasing a property which was both in foreclosure and distressed.    

Investor Capital: 

We have multiple Sharewell projects running and providing a proven, stable and  reliable cash flow model. We want to help more people through taking on additional capital from outside our organizations. By giving away the profits to the investor, we can grow our impact.   

Architectural Design: 

Specializing in houses by Portland’s greatest architects from the heyday of architecture: Doyle, Lawrence, Ertz, Belluschi, Bennes, Jacoberger, Knighton, Pipes, and Bowman. McCulloch Construction is the leader in remodel design in the region. John McCulloch’s design for this worthy cause is donated at no charge, contributing to the viability of the project.   

Permits: 

The City of Lake Oswego is working with us to grant permits. The process will be ongoing during construction and will continue into the Fall. 

Remodel: Our lean and efficient team of craftsmen deliver construction with  artistic design, craftsmanship and frugality.  

Lease-Up:

Six months to vet single mothers. Candidates will have high academic potential children who can succeed through access to rigorous schools. Candidates will be community builders prepared to share childcare duties.          

Subject Property: 38 Briarwood Rd., Lake Oswego

Continue Reading Subject Property: 38 Briarwood Rd., Lake Oswego

Floor Plans, Ground Floor As Built: 5 bd, 3 bth

Floor Plans, Second Floor As Built: 2 bd, 1 bth

The Sharewell IV is available for investment now!

If you are an accredited investor (supported by your CPA), you are invited to join John McCulloch, the McCulloch Foundation, and McCulloch Construction to invest in our next Sharewell Housing venture: 38 Briarwood Rd. Lake Oswego OR, 97034.

Conclusion

The Sharewell is the secret to creating sustainable affordable housing with an empowering community.  By providing super low cost housing we are stopping homelessness upstream, before it can damage mental and physical health. We are creating a model that others can follow so that as wealth concentrates in fewer hands, everyone will be able to afford quality housing where they can experience growth and belonging.  We are tapping the power of capitalism to address the problem that is a byproduct of that system.  

Do something bigger than yourself.  This can be your legacy! Join the Sharewell Movement! 

Sharewell Certification

Sharewell IV will be a certified Sharewell, held to a high and well-defined standard. 

Continue Reading Sharewell Certification

We began certification to expand access to the solution by making our concept open source while patenting the certification process. This means that others cannot legally take the name without doing the societal good of non-exploitative rents. 

Those sharing our model go through the Sharewell Certification, a simple, low-cost process that lets others know Sharewell landlords are providing quality housing at altruistic rents to qualifying tenants.  

We are patenting the Sharewell House as a certification system. When people hear the words “Sharewell Certified,” they will know that the house has been certified by the McCulloch Foundation and meets the following requirements: 

  1. It is an existing house that was re-worked for shared housing.
  2. Investors are only making 3-4% and rents are only 5-6% of the total invested.
  3. A group of people live together who have common challenges to their success.
  4. Volunteers from outside the house are organized to regularly lend their time to help those within the house become more successful.
  5. Renters have agreed through their leases to meet once per month. 
  6. Renters have agreed to share and alternate house responsibilities.
  7. A part of rents collected are paid into a fund in equal parts to manage the property and to serve the population.  These two parts must be spent in equal amounts annually.
  8. The house is equipped so that no more than two unrelated people share a bathroom.
  9. Renters are recruited by referrals and or using applicant profiles that prevent discrimation while putting like populations, (populations facing the same challenges), together for success.
  10. The landlord works to foster two communities: a community in harmony within the house, and a community of those who can help support the particular demographic of the house from without. 
  11. The landlord must have an annual, painless evaluation and continuing certification of the process by the McCulloch Foundation in order to maintain active Sharewell Certification.

When Philanthropists and affluent people invest in housing with a return of  4%, this is a safe portfolio diversification, with a sustainable yield. The Sharewell Model harnesses the root of the housing problem, Income disparity, so that root cause becomes  the solution.   

While capitalism is the ultimate engine for change; unbalanced, it concentrates wealth in fewer hands, eliminates the middle class and creates an expanding working poor.  Sharewell rebalances the system to make entry level housing possible.  

The current economy is an opportunity to embrace the most promising solution for low cost housing.  

Chaotic governmental responses remind us that the best creative ideas have usually come from the grassroots. We look to ourselves as successful entrepreneurs: real estate investors, designers, remodelers, and landlords. With our skill set we can better address affordable housing efficiently than can governmental generalists.  

Sharewell means sustainable profits through altruistic landlording that is right for the recession. To grow access to the solution we are making our concept open source, and sharing the profits. Those sharing our model go through Sharewell Certification, a simple, low cost process that lets others know Sharewell landlords are providing quality housing at low rents to deserving tenants.