BP Post
Hello, looking for advice on options. I live in N. San Diego and was planning to start my investing journey by building an ADU on my primary residence. I had the soil testing engineers out taking measurements and was about to begin the process for permits until I stumbled across another deal.
I was at work talking with a co-worker and he was sharing about the passing of his father (RIP) and the headaches he’s experiencing with his dad’s house (house located in Vista, CA). He said his dad was a hoarder, had a reverse mortgage, and accumulated a bunch of debt. He believes there are 5 people paying rent under the table and does not believe there are any formal agreements in place. He thinks there’s 700k owed on the mortgage and another 50-75k in other debt.
The house is 2900 sq ft, 3 bed, 2 bath and sits on a 2.56 acre lot. There are 3 direct neighbors that show values of 1.24, 1.04, and 1.25 million respectively. All 3 are on 1 acre lots.
My co-worker said he’s less concerned with the money and more concerned with the headache of reviving this property and the time it would take away from his family. I told him if he planned to sell it I would def be interested.
I have a 200k HELOC that I was planning to use for my own ADU and I have a GC that is a personal friend of mine and has done a lot of work for me over the years. He can handle every apsect of this reno and will give me the best price.
My questions:
1. Should I offer to partner with him? He keeps the property in his name and I’ll use my resources for the work and after all costs are paid, split the profit?? I’ve worked with this guy for over a decade and he’s a good guy. I don’t want to be greedy either.
2. Should I be pursuing a hard money loan for this project? Purchase and construction? What options are available to me?
3. Any other suggestions on what options I have?
Thank you in advance for the advice!
