Investment Info:

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

Purchase price: $195,000
Cash invested: $1

This is a well-cared for triplex in the Germantown neighborhood of Philadelphia. It is seller mortgaged at 85% and the 15% down payment and closing costs were paid for using a private loan.

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

The property has been well managed and cared for and seller had 100% equity so there was an opportunity for seller financing.

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

A realtor brought it to me. As seller was open to seller financing I was willing to pay close to the asking price so there wasn't much negotiation over price. As the deal was happening the seller pulled out several times without offering any different terms. I kept adjusting the terms until the seller came back to the table. In the end, after 14 months of owning the property, the terms we settled on will become better for me than the original terms we'd agreed upon .

How did you finance this deal?

85% seller financed, 15% down payment plus closing costs were covered by a private money loan.

Lessons learned? Challenges?

When you have a seller unwilling to negotiate (says "no" but offers no more than that) ask the seller, "What has made you pull out of the deal?" and then "negotiate" with yourself on their behalf, addressing their concerns. And be patient with sellers when you're trying for seller financing. It definitely took longer than I would have preferred but that patience really paid off.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

These two have been all-stars for me since beginning this journey a couple of years ago...

Realtor: Alison Simon, Keller-Williams Philly (https://alisonsimon.kw.com/)
Attorney: Alan Nochumson, P.C. (https://www.nochumson.com/)