Here is the original ad for Mike's log home. 

This home sold just about as quick as a heartbeat -- and this was long before there was any 'real estate bubble.' 

Mike net profit from the sale was $160,000.00.  That means his total expense was 139k, including the property.  This was built in King County Washington -- a notoriously expensive area to build.   

Mike could have easily funded this project with a construction loan, or a small business loan.