All Forum Posts by: Brandon Henry

Matt M. To answer your first question, I work in software. I have done a couple remodels but never a pop top. This was just an idea that I thought of and was looking for feedback on. I already had a plan of asking the neighbor if they would sell. I know that without that piece there is no moving forward with a full blown building remodel strategy, which I am fine with, as I am almost done renovating my half to sell later next year. Thanks for your feedback!

@Steven Mitchell what's 150k to someone else doing the deal finding. When you(investor) has the opportunity to make 400k-600k?

@Bill S. Yes, you can consider it a duplex or even a townhouse. I cannot do a pop top since the units are connected, until the owner is the same for both.

Based on some quotes I received when looking into do a basement dig out they fell in the 40k - 70k, this included finishings. With the assumption of owning the neighbor's and doing both digs at the same time, I assumed the cost to be around 80k-100k. (both homes have basements currently at about 6ft ceilings. Wanted to make it 8ft ceilings).

Option 2 - I guess I wasn't to clear about the exit price. The 150k was a finders fee to me. My thought on the wholesaling deal would be, I talk with the neighbor to get the "Make Me Move" number and then add my home to the sale to where my loan is paid off in full. Then as a finder fee in the contract ask for 150k to me, since the neighbor would be getting the price they want. 

Agree about the complexity of work being done to the homes is the main challenge, this is why Option 2 looks like a better opportunity to me, as long as I can back up the numbers.

As far as the numbers you laid out. Are those the future sale price per unit with the work done? or the current price of the homes together?

I am in a unique situation. I have a few options available to me and I am trying to figure out which option to go with. I am looking for feedback from those that have gone through my options available. I am in the Denver, CO area in Platt Park, which is a very "hip" area for young families or those trying to start a family. Below numbers are rough based on speaking with my real estate agent.

My Situation: I do not have enough DTI available to buy the neighbor's house nor fund the construction phases for Option 1.

Option #1:

Short Description: Buy the neighbor's house and pop the top and dig the basement out and sell each as separate units.

Issues: Funding to buy the neighbors house/popping the top/digging out the basement

Rough Numbers: My house 370k, neighbor's house 350k-450k, Pop Top on both 125k-160k, Dig both basements 80k-100k, Finishes - 50k-100K    Total Cost - Roughly 1,150,000 

Potential Reward: Selling each unit around 750k-900k Total - 1.5M-1.8M 

Option #2:

Short Description: Ask the neighbor how much they are willing to sell their half and wholesale their half and my half to an investor.

Issues: Finding out what the neighbors are willing to sell. Finding an investor that has the money to buy both units.

Potential Reward: Get the investor to buy both halves and provide me 150k for setting up the Deal between the neighbor and I.

Guidance Needed: Where to start on finding the funding for either option. Looking for books, people, place to go to setting up the right deal for either option. 

I can provide more information if needed. Let me know what you all think!