All Forum Posts by: Shawn Kostoff

Investment Info:

Single-family residence wholesale investment.

Purchase price: $101,000
Cash invested: $100
Sale price: $111,000

This was a wholesale deal with a seller that was struggling to make payments on a vacant home she owned before buying her current home.

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

I found this deal through direct mail marketing with postcards.

Lessons learned? Challenges?

I started speaking with this seller back in September 2019 and it took me about 4-5 weeks of calling to follow up before finally reaching her over the phone. At the time the market value of the home was not high enough to pay her enough money to cover her mortgage payoff. Through my follow up process I noticed some recent sales in May 2020 that would create a bigger spread and allow us to get her enough money to pay off the mortgage.

@Account Closed

Congrats on paying off your student loans!  I live and invest in the Wilmington market.  Please reach out with any questions you may have, I'd be happy to help in any way I can.

Good luck!

@Emily Lauren boulden

Congrats on the successful rental!  It's great you are getting started at a young age.  I live in Wilmington (Pike Creek) and invest in most of New Castle County as well as parts of Delaware County, PA.  I typically wholesale properties and will occasionally hold onto deals that make sense for me.  I would be happy to help anyway I can, feel free to send me a message if you need anything.

Investment Info:

Single-family residence wholesale investment in Wilmington.

Purchase price: $121,000
Cash invested: $100
Sale price: $130,000

I was able to help a seller offload a rental property that was no longer performing for them.

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

I found this deal through direct mail marketing. The seller first reached out in early February and after a few conversations, meeting at the property and a little negotiating they decided they would just keep the property and do the renovations themselves. In April I received a call from the seller after they received a follow up voicemail. They were more receptive to my offer. After meeting again and a little more negotiating we were able to come to an agreement.

What was the outcome?

We were able to find a serious cash buyer who agreed to purchase the property and was able to close in 3 weeks.

Lessons learned? Challenges?

The fortune is in the follow up! Having systems in place was the main reason I was able to get this deal. The seller reached back out after getting an automated message from my CRM system. The negotiation and finding the right buyer were a little more challenging with this property, but as a result I have expanded my cash buyer list.

@Account Closed The property is pretty solid.  We negotiated a new roof prior to purchase and the main systems/big ticket items are in good shape.  We will do some normal turnover work and get it ready for the next tenant, not a huge renovation.

@Matthew Irish-Jones No, if I listed the property for sale today I could get $250,000 for it, so I have about 20% equity built into the deal.  After the debt payments, taxes, insurance, capex, vacancy, etc... I will make a few bucks each month, which is okay with me because of the location and opportunity to get the property for little money out of pocket.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $198,000
Cash invested: $7,500

I completed my first seller financed deal on a 3 bed/2 bath ranch, single family home in a great neighborhood in North Wilmington. I negotiated a price of $198,000 with a $15,000 down payment and he is holding a note for 8 years at 4.25%. I got a $15,000 loan from a family friend to fund the down payment and I covered the transfer tax, closing costs, and a few miscellaneous items.
There is a tenant in place, moving out in May, I will then turn it over and increase the rent to market rate.

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

I have been making seller financed offers for a few years now, so it was nice to finally get to an agreement on one.

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

Direct mail marketing. The seller and I went back and forth a number of times, we were both pretty reasonable about the terms and came to an agreement that worked for both of us.

How did you finance this deal?

The seller is holding a note on the property and I included a family friend on the deal where they will make an 8% annual return, plus a bonus payout after 8 years.

Lessons learned? Challenges?

Everything is negotiable. Be consistent and be persistent.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $198,000
Cash invested: $7,500

I completed my first seller financed deal on a 3 bed/2 bath ranch, single family home in a great neighborhood in North Wilmington. I negotiated a price of $198,000 with a $15,000 down payment and he is holding a note for 8 years at 4.25%. I got a $15,000 loan from a family friend to fund the down payment and I covered the transfer tax, closing costs, and a few miscellaneous items.
There is a tenant in place, moving out in May, I will then turn it over and increase the rent to market rate.

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

I have been making seller financed offers for a few years now, so it was nice to finally get to an agreement on one.

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

Direct mail marketing. The seller and I went back and forth a number of times, we were both pretty reasonable about the terms and came to an agreement that worked for both of us.

How did you finance this deal?

The seller is holding a note on the property and I included a family friend on the deal where they will make an 8% annual return, plus a bonus payout after 8 years.

Lessons learned? Challenges?

Everything is negotiable. Be consistent and be persistent.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $198,000
Cash invested: $7,500

I completed my first seller financed deal on a 3 bed/2 bath ranch, single family home in a great neighborhood in North Wilmington. I negotiated a price of $198,000 with a $15,000 down payment and he is holding a note for 8 years at 4.25%. I got a $15,000 loan from a family friend to fund the down payment and I covered the transfer tax, closing costs, and a few miscellaneous items.
There is a tenant in place, but she is moving out in May, at which point I will be able to turn it over and increase the rent to match the market rate. At the end of the 8 year term I will most likely pay out the seller and my family friend and refinance with a 30 year mortgage. If my plans change I will renovate it and sell it, the current market value of the property is in the $250,000 range.

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

I have been making seller financed offers for a few years now, so it was nice to finally get to an agreement on one.

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

Direct mail marketing. The seller and I went back and forth a number of times, we were both pretty reasonable about the terms and came to an agreement that worked for both of us.

How did you finance this deal?

The seller is holding a note on the property and I included a family friend on the deal where they will make an 8% annual return, plus a bonus payout after 8 years.

Lessons learned? Challenges?

Everything is negotiable. Be consistent and be persistent.

@Jimmy O'Connor Thanks for the endorsement & kind words!  Appreciate it.

Through my marketing I have been getting more deals in Delaware County, PA.  If you are a cash buyer that works in DELCO please let me know and I will include you on any future opportunities.