All Forum Posts by: Ray Jimenez

Raden, First check the condition of the property and see if it need any improvements. Also pull a few comps around the area to see exactly how much are people paying in that particular market. See if the executer is willing to accept an offer that you pay for everything including mortgage, attorney fee, and closing cost. If number make sense of course. Also I deal a lot with probate myself and most of the times there always back taxes that needs to be paid. So take that into consideration as well.

@Ray Jimenez You came here asking the volunteer contributors here to give you feedback on your "investment" proposal and now you're arguing with the responses you receive.

You have little experience, credit or money. Why should anyone trust you? 

Get some of your own experience the hard way, with your own money, then you'll understand all of the little things in your proposal that are turn offs to those who already possess credit, money and experience. 

Brian, to be honest just be up front with the realtor. Don't approach the deal as if your going to buy it but approach it like your a Real Estate Investor and will like to market this deal to other investor to invest in. And tell the Realtor that you'll give him a small cut.

Red flags;

4/40 cents on the dollar is an amateurish term, it is 40% LTV.

You're putting no money into it, you have no skin in the game.

You plan to have it vacant for a year to try and get cap gains.  You need to sell it as soon as it's ready, avoid risks, vandalism, etc.  Also, holding a "flip" for a year doesn't get you cap gains tax, since the intent was to flip, not rent it out as a long term investment.

@Ray Jimenez you need to include all of the holding costs (taxes, utilities etc) as well as the realtor commissions and excise taxes once you sell it. There will not be as much "cushion" as you think there is. The whole verbiage about holding it for a year to receive capital gains benefit is also a bit strange. Most flippers want to get in and out as quick as possible to minimize the amount of holding costs. Seems like a strange strategy and not what most investors are used to. If you were actually able to buy it at that price, rehab it and sell it for the price you are predicting it would actually be a good deal. You just need to make sure you have all of the numbers included and clean it up a bit. The hard part is convincing people that you can pull it off as a first timer. Everyone starts somewhere so the more professional you appear in the beginning by having all of the correct numbers and figures, the more likely someone would be willing to work with you. If it looks thrown together half heartedly, which it does, nobody will take you seriously. Good luck