First Seller Financed Deal in North Wilmington

[Shawn Kostoff]

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.