All Forum Posts by: Bill S.

@Reginald Truss not really comfortable posting that kind of data on a public forum. If you view my profile you can see information that would allow you to get ahold of me and I will be glad to address questions.

I have a condo in Cherry Creek (335 Detriot St unit #305). We (my wife and I) own this free and clear. We inherited it from my Father and it has a high quality tenant in place who has never been late on rent. The current lease expires in May of 2021. We would like to sell the property but it's a family thing and the tenant wants to stay. We would like to tap up to $150,000 of the equity (for what it's worth, we have an appraisal from the estate for $600,000 and assessed value is above that number) to use for the fix up of a duplex flip we have purchased. The loan, secured by a first deed of trust for up to 1 year, to us could be funded with an IRA or cash on hand. Let me know what your terms would be.

Due to the time frame of the lease and all the trapped equity, a conventional loan does not make sense to me so that's why I posted here.

Thank you. Bill

@Kevin Brown sorry a bit late to the party here but had 2 cents to chime in with. Pretty much everything was said but wanted to clear something up. It was sort of alluded to but not stated specifically. Construction loans typically require the land to be free and clear. Sometimes if there is a loan on the land they lower the construction loan amount so you have to put cash into the construction. In some cases I have heard they will still fund deals if the lender on the land makes their loan junior to the construction loan. This would only be with experienced builders with a great deal and a solid track record. 

@Roxanne Ibrahim I would say there is no "best". The content of the course is mandated by the state and all must teach the same thing, literally. Use google and find the approach that best fits you. All on-line if that's your cup of tea or go sit in class each day or night if that works best for you, or lowest cost if you are budget conscious. The last step is to check out their pass/fail rate. It shouldn't be a problem but some offer more hand holding which can result in more students passing the exam. It's not hard for most people with a college degree. If you struggle with math or have some learning differences look for one that offers more practice and support. 

You can also use the search feature and locate previous posts discussing this topic as well.

@Chandrika Brewton it's private lending so there are no rules. BP has a very large list of hard money lenders. Go to the "network" tab above and the pick "hard money lenders" from the drop down menu options. Now if you want what I would call private money that comes from your personal network. They are private high net worth people who don't advertise their services. They come by word of mouth through your network.

Generally speaking, you find those folks by networking, Also generally speaking private money and hard money lend locally. There as some that will do "out of town" projects and they want a proven track record, a solid business plan, and hefty personal net worth. 

@Travis Sperr and @Justin Cooper from Pine Financial do hard money lending on local ground up construction if you want a place to start. 

Just a note. If you add a profile image I can "mention" you vs having to "quote" you. 

So I am a bit fuzzy on your situation. You said it's a tri-plex but was a quad. Is there plumbing for a 4th kitchen? Is there an electrical or gas connection for a 4th range? 

I think you are barking up the wrong tree with changing the zoning. You want to have the "property type" changed and I think the term is to change to the "use" to be classified as the a "triplex" or "residential 4-8 units". The zoning controls building form on new construction or modifications (row house must have all doors facing street). Your building form is legal non-conforming (only one door faces the street). I have not gone through the process on changing use. I looked into it for converting a warehouse to living space and it was not feasible due to the requirement to bring the building up to the new building code when the use was changed. I think the question to ask is "My property/the one I want to buy and my neighbors properties are the same exact structures but their property type is "residential 4-8 units" and my property type is a "duplex". How do I get my property type changed to the same as theirs which is incidentally what mine really is?" It may come down to when was the use actually changed from the original duplex to the tri or quad. I am assuming the problem is that the conversion was done without a building permit so county records don't reflect the added units. Originally, the basement was probably not finished when the CO was issued. At some point after that, the other unit(s) were brought on-line again without the benefit of a building permit.

If it's really important to you and it sounds like it is, I would suggest starting with a knowledgeable attorney so that you don't tip your hand in the wrong direction with the City. 

There is no change in zoning. The property is legal and conforming. Multi units all with doors facing the street. The zone lot remained intact. The parcel was split. Any modifications to any of parcels requiring zoning approval would consider the zoning as if all parcel were still owned by the same person. It's a bit confusing because Denver has a very unique approach to zoning and divided individual parcel ownership. In most jurisdictions, the project across the street could not have happened because the resulting parcels would not meet the requirements for individual zone lots. Denver has adopted the perspective that parcels can be split out but the zoning still looks at the original configuration. Denver has zone lots and parcels. In many cases they are one and the same but there are also not an insignificant number where that is not the case. Post back if you have a specific question and I will try to explain.

@Rodney Crawford so unless this is a really desirable piece of land (that is expensive >$200k) you are biting the hand that feeds you. Agents doing sub $200k deals really don't make enough to live on in this market so keep that in mind. That said, if you signed a listing agreement that should tell you if you owe the agent the full amount or not. There is a place to exclude previously interested parties (it should also name them). If there are none listed, you would owe the full amount. Also consider if the buyer is now offering at least 5% more than what they did originally, then you are winning by bringing the agent on board. If they are not, then perhaps some negotiations are in order with both the buyer and the agent. It would be time for the agent to earn their commission by helping all to navigate this mine field.

In general, you are wasting time and money trying to rezone in Denver. Their favorite answer is "NO". I was told by an architect that sits on the board that reviews requests for variances, that they only grant them in hardship cases. Hardship cases are not, "I need it so I can make more money". 

As I mentioned before, it is probable that your property would be considered legal, non-conforming since it's present configuration likely predated the current zoning class. You can find out if you want to kick that bear. If you want to risk the legality of the third unit start the process with the City. I don't think they would allow you to add a fourth unit unless it is already set up for it (has a cook stove - gas or electric) and perhaps also legal non-conforming. You can try, all it costs is time and money. To start the process call the zoning department and describe the situation. Actually you will have to leave a VM and then in a few days someone will call you back. They will tell you what the steps are. Now having said that, they are not helpful in that they won't tell you how to approach them for the most positive outcome. I would start with so someone how would I go about this... and what would be required to prove it is legal non-conforming... I would reach out to them before you close so that you can ask the questions in a way that is neutral meaning that you don't have a dog in the fight (yet). There are attorneys that can help with the process as well. Post back if you need a referral for that. They are not free or cheap but might give you their thoughts in a couple minute phone call without charging you.

@Aimee Lawrence great job. The next step is to determine what kind of structure you can get permitted as an ADU. Some building codes won't allow prefabs. Some require a real foundation. Some allow for a slab etc. You might get with the City building department and ask them for a list of ADUs that have been built in the last 2 years. You might then be able to contact the owners using the property address. The owners might share their contractor's name with you. It usually works best if the builder has previous experience with what you want to build.