Finally Found A 100% Owner Financing Deal

I've been sitting on the REI fence for about six months now and ready to take some ACTION. What's steps should I take to make sure that this would be a good deal to acquire or if a bad deal? It's a duplex with tenants already in place.
In Buying Property - Asked by marchello f. - Sep 23, 2010
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Answer(s)

Venkat R.
Broker/Agent
Los Altos, CA

Several criteria need to be used.
1. Compare similar property prices in the neighborhood
2. Compare similar property rental rates in the neighborhood
3. Check the quality of tenants - their credit, income, references
4. Consider the length of tenancy
5. Inspect the condition of the property - termite, property (in some cases environment and geo-technical)
6. Generally if the owner is willing to do 100% financing, they still believe in the property which is good, but they may also not be able to sell it otherwise, which is bad - so do your due diligence
If you still have questions email me at vramasamy@gmail.com

Sep 23, 2010
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DFW R.
Owner/Investor
Plano, TX

Agree with everyone said by Venkat. I would add.
1. Go into contract with 3-4 weeks of option period where you can investigate this property and decide if its worth.
2. Financing terms needs some attention as well. Review it with someone who knows owner financing terms well.
3. make sure there is no pre-payment penalty if you don't like this person and want to refi.
4. Make sure you can sell the property if you need to
5. Inspection is the key. Make sure everything is fixed before closing so there is no big surprise.
6. Make sure the lease between owner and tenant is legal and in writing.
good luck. First one is always hard but it will get easier and easier...

Sep 23, 2010
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Ariane R.
Owner/Investor
Jacksonville, FL

Make sure that you account for some vacancy when doing the numbers. Check out Bigger Pockets, it is all about Real Estate Investing, ask this same question in that community, all though you have some great responses thus far.

Sep 25, 2010
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marvin w.
Owner/Investor
virginia beach, VA

if it is in a good location and you are getting it for a good price and most importantley a good cap rate 9% or better with some positive cash flow. go for it.

Sep 25, 2010
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Gregory G.
Broker/Agent
San Francisco, CA

100% owner financing? You are getting a bad deal.

Sep 25, 2010
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marchello f.
Owner/Investor
Jacksonville, FL

well i guess due diligence pays off

Sep 28, 2010
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Brian C.
Corporate Investor
Eggertsville, NY

If someone is willing to do 100% finance and the numbers workand you look at all things listed above Why is it a bad deal

Oct 1, 2010
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