Woodlyn Buy and Hold

[Shawn Kostoff]

Investment Info:

Townhouse buy & hold investment in Woodlyn.

Purchase price: $102,000
Cash invested: $13,000

I was contacted by the seller of the property in April, he found us through our website. He was looking to sell his house and did not want to list with a realtor or go with a traditional sale. He wanted to sell it as-is, with a quick, simple closing. Even though we weren't the highest offer he chose to work with us because of our consistent follow up and the way we stuck to our word.

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

We are always looking for BRRRR deals that we can acquire with little to no money out of our pocket after the refinance.

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

The seller contacted us through our website. I met the seller at the property and established a good rapport. Initially our offer was lower than some of our competitors. After a couple of weeks and few phone calls we made our final and best offer, but the seller said he was going to go with a higher offer. About a week later I received a call from the seller who stated he wanted to work with us because we were consistent and always stuck to our word.

How did you finance this deal?

We borrowed cash from a private investor to fund the purchase price and most of the renovations.

How did you add value to the deal?

I was a resource for the seller and provided whatever he needed, he saw the value in what we offered and ultimately chose to work with us.

What was the outcome?

We purchased the property, renovated it, and were able to rent it out for more than we anticipated. We will be refinancing in 2 months and pulling most of our money out, while also paying back our investor.

Lessons learned? Challenges?

The highest offer is not always the one that gets accepted. It pays to be consistent, stick to your word, and establish strong, honest relationships.