All Forum Posts by: Joey Sostheim

Investment Info:

Single-family residence wholesale investment.

Purchase price: $30,000
Cash invested: $6,000
Sale price: $45,000

This was a hoarder house we bought with intention of being our first Brrrr investment. My mother in law however decided she loved the location so we tore the house down and sold her the lot where she built her home. I guess you would call this a wholetale deal

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

After finding BiggerPockets this was our first stab at investing

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

I was at a pool party and overheard a friend talking about this house he got for 10k in a great location I was familiar with. After a beer or two and a couple of hours I agreed to $30k sight unseen

How did you finance this deal?

Cash

How did you add value to the deal?

Cleared the house of the lot and made room for a new one

What was the outcome?

My mother in law purchased the lot for just over what we had in itand built a beautiful home here In the neighborhood.

Lessons learned? Challenges?

I learned to pull the trigger and get going! Probably the hardest thing to do as a newb.

Investment Info:

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

Purchase price: $410,000
Cash invested: $10,000

This is a very unique property with a 3/2 a 1/1 garage carriage house and a 2/1 cottage. In the desirable cove neighborhood

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

I’m looking for passive income

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

MLS we paid asking price because we needed 90days to close. We were selling our personal home and we didn't want to close before we had been in it two years so we paid the sellers of this property to hold it off the market.

How did you finance this deal?

Conventional financing of 80% with an additional 10% in a heloc. For a total of 90% financing

How did you add value to the deal?

Simply turning over to our property manager and bringing it up to market rent. The property is in great shape but it was grossly under rented.

What was the outcome?

Main house rents for $2100. Carriage house rents for $1050 plus $35 pet rent. And the cottage $1200

Lessons learned? Challenges?

Never again will I try to do a simultaneous close! We were supposed to close on our personal home sale and this property at the same time. However our bank couldn’t get an appraisal in time(90days) and the sellers would not extend so we had to pay cash and refinance a few weeks later which over extended us! Not fun at all but in the end it all worked out

Investment Info:

Single-family residence fix & flip investment in Panama City.

Purchase price: $60,000
Cash invested: $120,000

Nice single family home in the Cove neighborhood with an ARV of $400k

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

I live in this neighborhood and saw massive potential

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

I tracked down the owner through mutual friends in FB

How did you finance this deal?

We partnered with friends and obtained financing through a hard money lender

How did you add value to the deal?

We have completely gutted the property and are in the process of a full reno

What was the outcome?

TBD however the ARV comps out at $400k plus and our total investment should be around $200k! You do the math😉

Lessons learned? Challenges?

This is our first deal with an equity partner. So far so good, our timeline is behind about two months, mostly due to the back ordered black framed windows. Luckily my personal timeline expectations are pretty spot on. I add 25% to whatever the contractor tells me for a timeline

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

No this was an off market deal

Yes sir nothing better!

Investment Info:

Single-family residence fix & flip investment in Panama City.

Purchase price: $450,000
Cash invested: $150,000
Sale price: $835,000

This was our personal home or so we thought. Bought it just after Hurricane Michael

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

The potential for solid six figure profit

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

We found this on the mls prior to the hurricane and then worked a massive discount after storm.

How did you finance this deal?

Conventional through a local lender

How did you add value to the deal?

We fixed all hurricane damage and added a dock, seawall and hardwood floors

What was the outcome?

We sold for a tax free (our personal residence for two years) gain of $235,000

Lessons learned? Challenges?

Keep your mind open to all options we planned on staying longer but the market said otherwise

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

My wife is a rockstar agent, sold off market before listing. Carly Sostheim Realtor with Corcoran Reverie

Investment Info:

Single-family residence buy & hold investment in Panama City.

Purchase price: $60,000

Old home on great lot with future commercial potential. Zoned commercial but grandfathered in residential

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

Helping my hometown while creating passive income

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

MLS

How did you finance this deal?

Local credit union

How did you add value to the deal?

Still in progress but we will be remodeling and updating electrical, plumbing and everything else

What was the outcome?

Still in the works

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

Purchased through the sellers agent Vince O’Keefe he was great

Investment Info:

Single-family residence buy & hold investment in Panama City.

Purchase price: $36,000
Cash invested: $49,000

We purchased this Hurricane damaged house using excess cash from our previous Brrrr refinance of a duplex. This house had a solid foundation and good tile flooring that was about it. We converted from a 1-1 to a 2-1 and basically repaired everything plumbing, electric, roof .... you name it we had to do it! Turned out great and is a solid cash flow property for us

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

Looking for passive income through brrrr. Also fixing up my hurricane ravaged home town

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

I found the owner on my property appraisers website. Purchased multiple properties

How did you finance this deal?

Cash

How did you add value to the deal?

Completely remodeled and updated

What was the outcome?

Great cash flowing perfect brrrr

Lessons learned? Challenges?

Don’t purchase in an llc if you plan on being your own general contractor 😬

Investment Info:

Single-family residence buy & hold investment in Panama City.

Purchase price: $36,000
Cash invested: $49,000

We purchased this Hurricane damaged house using excess cash from our previous Brrrr refinance of a duplex. This house had a solid foundation and good tile flooring that was about it. We converted from a 1-1 to a 2-1 and basically repaired everything plumbing, electric, roof .... you name it we had to do it! Turned out great and is a solid cash flow property for us

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

Love the brrrr method plus I want to help rebuild my hometown after hurricane michael

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

I negotiated this purchase along with a duplex and another Single family from a private seller. All hurricane damage and no insurance

How did you finance this deal?

Cash

How did you add value to the deal?

We completely remodeled the home

What was the outcome?

Great cash flowing property currently rented for $1430 per month with $0 left in the deal

Lessons learned? Challenges?

I made the mistake of purchasing this in my llc instead of personally. In Florida the homeowner can be your GC but because I purchase I. An llc I had to get a GC. Even though I did it myself with subs

Investment Info:

Single-family residence buy & hold investment in Panama City.

Purchase price: $36,000
Cash invested: $49,000

We purchased this Hurricane damaged house using excess cash from our previous Brrrr refinance of a duplex. This house had a solid foundation and good tile flooring that was about it. We converted from a 1-1 to a 2-1 and basically repaired everything plumbing, electric, roof .... you name it we had to do it! Turned out great and is a solid cash flow property for us

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

Love the brrrr method plus I want to help rebuild my hometown after hurricane michael

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

I negotiated this purchase along with a duplex and another Single family from a private seller. All hurricane damage and no insurance

How did you finance this deal?

Cash

How did you add value to the deal?

We completely remodeled the home

What was the outcome?

Great cash flowing property currently rented for $1430 per month with $0 left in the deal

Lessons learned? Challenges?

I made the mistake of purchasing this in my llc instead of personally. In Florida the homeowner can be your GC but because I purchase I. An llc I had to get a GC. Even though I did it myself with subs

For sure with the added bonus of rebuilding a disaster zone!