Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Danny Abrahamson

Danny Abrahamson has started 4 posts and replied 5 times.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $415,000
Cash invested: $70,000
Sale price: $735,000

My first pursuit to equity build out!

In the first year, I managed a few cosmetic upgrades to each room and turned the basement into a functional workshop. I got lucky with rising property prices, refinanced the mortgage at a low interest rate, and used excess capital to pay off the friendly lender.

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

It was my only option at the time. No/Low money. Needed a place to live!

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

An all-star real estate agent, Cathy Lomasney in Billerica MA

She is not an investor-focused agent, but she is diligent in paperwork and process. Fully representative of us as buyers

How did you finance this deal?

A first-time home buyer with only 3% available for the down payment. We leveraged a family-friendly loan to make up an additional 20%.
Terms:
- 2-year payback
- the loan was from a variable HELOC; amortized monthly payments based on the variable interest rate of that month

How did you add value to the deal?

Used HELOC to do a major upgrade of retaining walls, refinished a bathroom, did significant landscaping, added additional SF in the basement, added a new heat pump system, and refinished flooring. Tons of sweat equity

What was the outcome?

Net $289,000 over four years after paying off mortgage and HELOC.

At that time, current property rates allowed to leverage added equity to another property. We had been in the house for over three years and avoided capital gains. There was some liability with the house (location, water intrusion), so it made sense to sell rather than pull equity and rent.

Lessons learned? Challenges?

Patience and a good partner

Don't let good contractors go. Don't let others go with bad contractors

A good stager is worth the money

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

Cathy Lomasney, ERA Key, Billerica MA

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $415,000
Cash invested: $70,000
Sale price: $735,000

My first pursuit to equity build out!

A first-time home buyer with only 3% available for the down payment. We leveraged a family-friendly loan to make up an additional 20%.
Terms:
- 2-year payback
- the loan was from a variable HELOC; amortized monthly payments based on the variable interest rate of that month

In the first year, I managed a few cosmetic upgrades to each room and turned the basement into a functional workshop. I got lucky with rising property prices, refinanced the mortgage at a low interest rate, and used excess capital to pay off the friendly lender.

Used HELOC to do a major upgrade of retaining walls, refinished a bathroom, did significant landscaping, added additional SF in the basement, added a new heat pump system, and refinished flooring.

At that time, current property rates allowed it to leverage added equity to another property. We had been in the house for over three years and avoided capital gains. There was some liability with the house (location, water intrusion), so it made sense to sell rather than pull equity and rent.

Net $289,000 over four years after paying off mortgage and HELOC.

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

It was my only option at the time. No/Low money. Needed a place to live!

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

An all-star real estate agent, Cathy Lomasney in Billerica MA

She is not an investor-focused agent, but she is diligent in paperwork and process. Fully representative of us as buyers

How did you finance this deal?

3% personal, 17% friendly lender

How did you add value to the deal?

Tons of sweat equity

Added SF
Leveraged incentives to install heat pumps (cooling!)
Retaining wall and curb appeal
Landscaping

What was the outcome?

Net $289,000

Lessons learned? Challenges?

Patience and a good partner

A stager does add value

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

Cathy Lomasney, ERA Key, Billerica MA

@Jonathan Taylor Smith, that is great to hear.  I just sat with KW to go over their training programs.  Were you part-time or start full time?

Hello, 

I am starting my path towards REI. I am working on my network, finding resources, and educating myself! I want to get my RE license and work on my buying selling under a broker part-time. Has anyone gone this route? How did you find the right broker to train you? I have read articles about the pitfalls of part-time selling, but would appreciate some personal experiences, lessons learned, etc.

Thanks!

Hello, 

I am starting my path towards REI. I am working on my network, finding resources, and educating myself! I want to get my RE license and work on my buying selling under a broker part-time. Has anyone gone this route? How did you find the right broker to train you? I have read articles about the pitfalls of part-time selling, but would appreciate some personal experiences, lessons learned, etc.

Thanks!