All Forum Posts by: Ritchie Molitor

Hi BP team.  I have a house I would love to purchase and run as a co-living house in our small mountain town.  I need to find a private lender for the down payment ($137ish).  I would run it.  I'm open to how to structure the terms for this investment depending on what the investor's needs/wants are.    Does anyone have advice on where to look for a partner who would be interested in this creative opportunity?   I'd love to hear who else is doing co-living rentals!  

Tim Emery

Thanks for the invite!  I will for sure. I've been to a meetup downtown awhile ago.  So great that you have done that for 18 years.  I'll be watching you!:).

Thanks,

Betsy and Ritchie Molitor

Buena Vista CO

Hi team. I'm a newbie and taking it all in. I'm wondering about the benefit of joining the Colorado REIA group? Also wanted to ask if I started a real estate investment club/group in my area if I need to associate with anything? For those of you who have done this, would you mind advising me in the best steps?! I am grateful!

Hi Jason,

Keep in mind if you sell the property, you will disclose this problem. Any buyer will want it fixed or at least definitively know how much it will cost to bring it up to snuff. Pay me now or pay me later. I am with John, get a second opinion or two. If you are replacing the exterior line, get a bid from an excavator. Excavators know how to lay new sewer lines, plumbers often have to sub-out to an excavator, they know how to dig better than plumbers do.

I hope this helps.

Ritchie

@William C. Have you read the book "never split the difference"?  I would go to the "late night" DJ voice and negotiate with the buyer on this. You say things like "sounds like you all have been through a lot" ("sounds like" much better than " I hear you saying") "How can I help you?" Mirror what they say.... let them tell their story and be heard..... try not to defend yourself, be a conduit to allow them to vomit up all that is inside them. Once you think they got it all out and know what they want... then you can figure out what you will offer. If it is me, I am not buying them new system, but maybe I give them $2k ??  But set it up like " I was thinking I could help $750-$2000" when they get $2k they are champs.

I hope this makes sense and helps, great book to get advice from for these situations!

Best

Ritchie

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Buena Vista.

Purchase price: $420,000
Cash invested: $80,000

Live in BRRR... Family (8 kids at home) living in both sides while renovating, under contract for next "live-in BRRR" , we will refi and get our $80k plus out of it in Feb.

What made you interested in investing in this type of deal?

Needed a place to live while building a new home.

How did you find this deal and how did you negotiate it?

It was on the MLS for a long time in our Market, it was overpriced at 449k..got it for 420k and it appraised for 440K.

How did you finance this deal?

Conventional, had to go through local bank, it is a unique Manufactured Duplex, which most lenders won't touch.

How did you add value to the deal?

We did the following: -Tore out wall between kitchen and family room- tore out all flooring and trim - adden new LVT flooring everywhere- new paint inside and out - painted cabinets- new appliances- new island and island top.

What was the outcome?

Waiting to refi in Feb to get back down payment... should be a cinch.

Lessons learned? Challenges?

Most lenders will not lend on a manufactured duplex!

Joseph,

People getting mad is a buying/selling sign. Have you tried going back to them with a number that would work? That's what I would do, offer them a number that would work for you...sounds like they want to sell!