All Forum Posts by: Javier Acosta

Hey guys,

Just wanted to share my experience dealing with auction.com!

So, I had my doubts about this website, whether it could really be a good option for acquiring a good deal, as there were opinions on both sides of the fence. Anyways, I found a property that I very much liked, I went and checked it out and it was in really excellent conditions, really small cosmetic details to be fixed. 

So, I go to auction.com and it was listed as "Bank owned" and it did not show a reserve. The site asks for a credit card, from which they place a $2,500 hold (temporary) so they know you are not just playing around. I put the card on the system, and it then allows me to place bids on this property. I waited up untill the last 3 minutes of the auction to place my bid, which at that moment was $75K, and when the last minute was going, I placed a bid for $85,000, which then was countered for $95K. Once again I waited untill the last 30 seconds and I placed a bid for $95K, and then I countered again for $97.5K, which ended up being the HIGHEST bid, making me the winner! Woohoo!!! My heart was going 123144565465645 beats per second at that time.

I am going to rent this house, and then refinancing again to repeat the process (BRRRR), and the numbers of this property are like this;

Sales Price: $97,500

Buyers Premium: 5% of sales price = $4,875

Cash to Close: $102,375.00

Appraised Value: $135,000

Personally, I am more than pleased as I don't have to do practically any repairs, I bought at 75% of value, the area of this property is growing at an accelerated rate,  and it is in a great location making it an easy rental. Once I refinance, I will be able to have a little over 100K to repeat the process. 

Just wanted to share my experience with auction.com, as I know there are alot of people wondering it it really works and if you can get good deals.

PS: Auction.com customer service is really goood in my opinion, I don't know why they have such negative reviews. They literally called me the second the auction ended to congratulate me and give me instructions. 

2nd PS: The reserve was not met, and the seller still accepted my bid. :) 

Hey tiffany,

Thanks for you input! Can you provide the link to your thread please?

Thanks!

Hi everyone!

Currently I am in a confusing situation

I have a property (free and clear) that I plan on doing a  Cash-Out Refinance worth $100K, the bank would give me $70K. I would use those funds to pay cash for another property, but my question is;

If I take a hard money loan for the rehab, can I still Cash-Out refinance that second property?

Example:

$50,000 Purchase

$15,000 Rehab (Hard Money Loan) 

$100,000 ARV

When I go to the bank, and I ask to to do a Cash-Out, would they allow me to take $70,000 (70%) of the property? Considering I that I used the hard money loan? 

Or would it be better to use a Conventional Loan, rehab, and then refinance? 

Thanks in advanced!

After saving up enough capital this previous year, I finally was able to buy my first property! I am very happy and currently doing the rehab to rent it out, but the question I have is; 

   - Should I hire a CPA for tax related purposes? I want to maximize every single aspect of my property, and regarding tax breaks I have no idea where to begin or what to do?

Any recommendations, if so does anyone have a reference for a good CPA (Real Estate knowledgeable) in El Paso, Texas?

 Jerry, in my case it is that the lenders I have talked to wont consider me yet because of my job. I work in sales and 90% of my income is commission and they need at least 2 years at it to count my entire income, so they only count the base pay which is only 1200/mo. 

I really dont want to wait another year....

What advice would you give? 

 First I want to thank you for helping out, now regarding your post, dont you think a partner for a hold property could be a headache down the road? I think that would be more addecuate for a flip situation. 

As for seller financing, do they normally offer long term financing? 

I been reading about a portfolio loan, but cant seem to find the base requirements...Do you think I could qualify for a portfolio loan with my current situation?

Once again thanks for your input!

I am a 22 yr old new to the Real Estate Investing world,and I have been having a really hard time finding a way to find financing for rental property.

I have an ok credit, but my current job is commision and banks require minimum 2 years at the same position to consider my salary, they only take my base(1200/mo).

I have the capital to do a 20-30% for a 100k-130k property. 

I dont want to wait 1 more year untill I have the 2year period at my job....

What is an alternative to finding financing in my situation? Any suggestion is appreciated!

Thanks in advance!

Oscar and Jaime,

Like you guys, I also reside in El Paso Tx. I am relatively new to REI, learning as I go, thankfully there are places like BP that allows us to connect with like-minded people.

I can relate to the same situation Oscar as I have been dealing with the same type of issue, have you found a solution to your problem?

I think it would be cool to connect maybe get together some time to share experiences/ideas and simply expand our network! 

Best of success to both of you guys!