All Forum Posts by: Sergio Baerga

Hey guys, 

I just purchased my second property this year.  All success due to biggerpockets networking, books, and videos.  I am not sure what to do now that I have it. 

I bought an apartment off an online auction for $53,500 (I used cash). 

The apartment comps around $125,000 and I received an offer for $115,000. 

I also found a lender who will give me n equity line for 80% of the appraisal (around $90,000)

It rents long term for $1,100. 

Experienced investors for a newbie looking to have a passive income portfolio. What would you recommend?

Flip and take gains and reinvest?

Or take the equity line and reinvest?

Thanks

Follow up!  Property is mine. Xome took a while but I bought a property that is currently being sold for $115,000 to $125,000  for $52,000. 

Thanks for the input and help at first I had a lot of doubts and but its set also with title insurance. :)  

God bless 

Good day, 

Well after the weird glitch, i used @Richard Sherman recommendation. 

"I would email the asset manager, copy the realtor, make it clear you want the property and consider yourself to have a valid purchase agreement and that they need to solve this ASAP (be nice but firm.)"

I finally signed the contract and put $3,000 down. The next step is wait on the legal time to call me for closing, the house has a history of legal issues, so lets hope it all works out. This is the first time I do anything like this so I am learning alot. 

Thanks to

@Richard Sherman and @Wayne Brooks for taking time to give me feedback. I'll let you know if I end up with the property. I am one step closer. 

@Richard Sherman thanks richard. will do, lets see what happends. 

The realtor is the one that is on the Xome listing btw, the asset manager put me in contact with that realtor. (apparently neither are communicating well)  

@Richard Sherman  

After I won the property and signed the agreement withing 24 hours I was supposed to receive a contract. I call customer service and apparently there is a glitch in the system and the asset manager told me that I would have to wait for the glitch to fix. (I have yet to receive anythign from Xome) It has been a week and they are still waiting for the glitch to fix. I haven't been given more details as on how to purchase the house (I intend on paying cash) etc. 

I found the property myself, but there was a realtor assigned to the property. Apparently that realtor tried selling the house and then some investors put it on Xome auctions. So the realtor has it back up online and the realtor hasen't been too responsive. I have had most of the communication with the Xome asset manager. 

But as you see I haven't gotten anywhere. 

Good day bigger pockets, 

I recently Bid on a property and apparently won on xome.com. 

I met the reserve and received this email. 

"Dear Sergio,

You are the Highest Bidder ................. at $52,500.00

, plus an additional $2,625.00 for Buyer's Premium.

Here is some helpful information to help you get the transaction moving forward. Please contact us with any questions at................

Please complete the Purchase Agreement and gather your supporting documents to send to us. Please log on at www.Xome.com and complete the Purchase Agreement required to move this transaction forward.

The Purchase Agreement is to be completed within 24 hours (1 calendar day).

You can access the Purchase Agreement by clicking this link:
Complete Purchase Agreement "

After completing the purchase agreement I called them and have been in communication with the asset manager of xome.com (the person that customer service sends me to)   and also the realtor (who doesn't seem interested in knowing anything thats going on, as she doesn't know and has never dealt with Xome. Apparently there is a glitch in the system and nothing has been generated. Apparently neither side knows what is going on. The realtor put the property up for sale as of today, and I am in the dark. 

Can anyone shine some light as to how I should go about this? Is this website legit? Do they have to honor the sale due to the fact that I signed the purchase agreement and have been in contact trying to pay cash since the first day?

Any light shined would be greatly appreciated as I do not know where to go from here or where to start to see if I can purchase this property. 

Thanks to every one who responded for the tips and recommendations. 

@Roberto Torres sounds great to meet up and discuss the issues in PR. I have had trouble finding banks who do HELOCS on the island so far, but I am loving the journey and the knowledge gained through each hurdle. 

Hey bigger pockets members. I have been here for a few months now reading the books watching the videos listening to the podcasts, etc. Almost closed on 2 deals but fell through (but learned a lot during both experiences)

I am stuck in this situation, and as I am new to this and I would appreciate any help or advice given to me. I am even willing

After running the numbers on different properties over the past few months I came across a property that works on the calculator. 

I have a certified contractor with experience and a large team who is down to do the work. 

I currently have $120,000 saved cash. 

Im having issues with financing. I have 800 credit and minimal debt and income over 6 figures. Low debt to income ratio. 

The property is being sold for $100,000 and the renovations will run me $160,000. Great location was being built and left incomplete. It is a 4plex, but supposed to have 2 units on the top to turn it into 6 units. (my contractor will build the 2 extra units on top)

I can get 6 units out of this investment at $850 each unit. 

BANK SUMMARY SO FAR

(#1 I live in Puerto Rico) Some lenders will not lend because of this. Some banks lend in P.R. as well as states. 

I have one bank who will finance me the $100,000 but not renovations. (about 10k closing and legal fees and 5.5% interest)

I have one bank who said if I buy the house cash and they will loan me the renovations. (5.5% the total amount loaned  plus 6.5% interest monthly.  

My main property is worth $330,000 and i have $160,000 equity on it. (In PR my bank will not do a home equity line of credit, only refinance the entire house which will run me over $10k in closing costs)

I keep reading on how the ideal situation is to pay as low money down as possible. 

Can someone shine light as to how to go about making this happen, I see that it is a little complicated for a first deal however the contractor is great and giving me a good deal on the rehab. 

Thank you for reading and any input, reading recommendations, or advice, or leads would be greatly appreciated.