All Forum Posts by: Shawn Kostoff

@Dan Zitofsky@Cassandra Sifford

I would attend if we could put something together.

Investment Info:

Small multi-family (2-4 units) wholesale investment in Wilmington.

Purchase price: $55,000
Cash invested: $100
Sale price: $70,000

This was a 2-unit property in a neighborhood that we have completed 2 other deals in last year. It came off a referral from a seller we worked with on a previous deal. The owner was getting ready to retire and wanted to sell the property as-is, with the tenant in place. We were able to assign the contract to an investor who already owns another place in the neighborhood for a $15,000 assignment fee.

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

I received a phone call from the owner who was given my number by another seller we worked with last year.

Lessons learned? Challenges?

It pays to treat the people you are working with well. Obviously the previous seller was happy with his experience in working with us because he referred us to a friend of his. This deal was "easy" because the new seller already had a good opinion of us going into it, I didn't need to do much negotiation and my end buyer got another great deal.

@Melanie Ruff

Welcome!  I live in Delaware, my wife and I invest in New Castle County as well as Delaware County.  Feel free to reach out if you have any questions or need help with something.

Investment Info:

Small multi-family (2-4 units) wholesale investment.

Purchase price: $93,000
Cash invested: $100
Sale price: $100,000

I worked with two sellers who jointly owned a 4 bed/2 bath duplex in the town of Elsmere. It was occupied with two good tenants in place and the property did not need any major repairs. I was able to wholesale this deal to an investor I previously worked with for a $7,000 assignment fee. I found this deal through direct mail and it took about 3 months of follow up. It was only after I asked if he had any other properties he was looking to sell when I was able to get this deal going.

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

Direct Mail

Lessons learned? Challenges?

Always ask potential sellers if they have any other properties they would be interested in selling. Follow Up!!

Investment Info:

Small multi-family (2-4 units) wholesale investment.

Purchase price: $93,000
Cash invested: $100
Sale price: $100,000

I worked with two sellers who jointly owned a 4 bed/2 bath duplex in the town of Elsmere. It was occupied with two good tenants in place and the property did not need any major repairs. I was able to wholesale this deal to an investor I previously worked with for a $7,000 assignment fee. I found this deal through direct mail and it took about 3 months of follow up before we were able to agree on a price and sign a purchase agreement. When I originally contacted the seller he was looking to sell another place he owned in the City of Wilmington. It was only after I asked if he had any other properties he was looking to sell when I was able to get this deal going.

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

Direct Mail

Lessons learned? Challenges?

Always ask potential sellers if they have any other properties they would be interested in selling. Follow Up!!

Investment Info:

Single-family residence wholesale investment.

Purchase price: $207,000
Cash invested: $100
Sale price: $217,000

I helped an out-of-state owner who wanted to sell their home with no hassles to a person they could trust. This property is in a great neighborhood and the house itself is in very good condition. We came to an agreement on the price in September, but had to postpone settlement to allow the tenant extra time to find a place and move out. I was able to sell to an investor I have worked with in the past.

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

Direct mail marketing. Strong follow up systems and helping the seller understand the market and what our objective was. I was able to build a good rapport with the seller and establish trust.

Investment Info:

Single-family residence wholesale investment.

Purchase price: $20,000
Cash invested: $100
Sale price: $24,000

I worked with a seller who owned a 2 bed/1 bath row home in the City of Wilmington. It was occupied with a good tenant in place and the property did not need any major repairs. I was able to wholesale this deal to an investor I already knew for a $4,000 assignment fee. I found this deal through direct mail and it took about 2 months of follow up before we were able to agree on a price and meet at the property.

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

Found it through direct mail marketing and made sure to follow up consistently with the seller.

What was the outcome?

I collected a small wholesale fee, the seller was able to sell the property at a fair price, and the buyer is getting another cash flowing property where he already owns property.

@Justin Tyler

Yes, anyone can attend these meetings.  The first one is free and then there is a membership fee you can pay for annually or you can pay as you go.  No matter which option you choose, you must pay for the buffet lunch at Iron Hill.

Investment Info:

Single-family residence wholesale investment in Newark.

Purchase price: $80,000
Sale price: $85,000

We were able to negotiate a price with the original owner of a townhouse in Newark, DE for $80,000 and took a $5,000 assignment fee from a buyer we had a previous relationship with.

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

We found this deal through direct mail (a postcard). It actually wasn't even the property we were originally targeting, he had a couple properties he was selling and this townhouse made the most sense from an investment standpoint. When we spoke originally he was looking to get at least $90,000. After a few conversations and meeting in person we were able to come to an agreement at $80,000.

How did you finance this deal?

We wholesaled this to a buyer we had known previously who was using a HELOC to fund the purchase a renovations before refinancing with a traditional 30 year mortgage.

How did you add value to the deal?

On top of finding and negotiating the deal we helped the buyer through the process a bit as this was his first investment property.

What was the outcome?

All parties were happy with the transaction :)

@Sam Sand

Another group I would recommend is the Greater Wilmington Housing Providers: www.gwhp.net

They meet on the 3rd Wednesday of every month for lunch at Iron Hill in Wilmington from 11:30 - 1:30.  It is a group with very experienced investors that own & manage properties in the City of Wilmington.