Wilmington, DE Wholesale Deal

[Shawn Kostoff]

Investment Info:

Small multi-family (2-4 units) wholesale investment.

Purchase price: $50,000
Cash invested: $1,000
Sale price: $60,000

After about 18 months of conversations and negotiations I was able to come to an agreement with the seller to buy his property. He was the original owner of a duplex (up/down), each unit being 2 bedrooms and 1 bathroom. We agreed to a $50,000 sale price, as is, and I knew I could sell it to another investor for $60,000 based on recent sales in the neighborhood. I had a ratified assignment contract about 2 hours after I signed the purchase agreement with the seller and we closed in 30 days. Everybody was happy. Normally I would have kept this for myself as a BRRRR deal, but it was not in a neighborhood I am looking to hold rentals in.

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

Direct Mail Postcard

What was the outcome?

$10,000 assignment fee.

Lessons learned? Challenges?

Follow-up, follow-up, follow-up! Be persistent.

[Shawn Kostoff]

@Cassandra Sifford

I have done a number of wholesale deals over the years and I still use it as a strategy, but I am transitioning to holding more properties.  In my experiences finding the end buyer is pretty easy when you have a great deal.  You don't need a massive buyer's list if you can find a few reliable, serious buyers.  I have been fortunate enough to have that and that has come through networking.  Finding the great deals is the hardest part, in my opinion.  I have found most of them through direct mail marketing and driving for dollars.