is it worthy to buy a property that contigent with a solar loan

12 Replies

lately my agent finds me a very quadplex that give very impressive ROI, all the units are occupied, several renters live there for very long time.

The biggest road blocker is the seller installed a solar panel ,if I need to buy this property I have to apply for the loan of the solar panel. 

I am not sure shall I buy the property or not?

Any pieces of advice will highly be appreciated! 

@Dong Yan can't the seller simply pay off the loan with the sales proceeds, through escrow? Is this a HERO project that is attached to the tax assessment of the house?

I just bought a house last month that had solar panels on it. I had no interest in continuing with the lease agreement with the solar company. The seller had no interest in having the panels moved to their new house. Their option was to pay to have the panels moved or pay off the contract amount. I am not sure what they did. Two weeks after the purchase I had my crew remove the panels and patch the roof.

Not sure about California law but here once I purchased the house the panels became mine since they were attached to the house.

It all depends on HOW they acquired the solar.  Did they buy with a loan?  Buy with a loan attached to their property tax?  Lease with monthly?  Prepaid lease?    PPO?  All have different effects.

My house for example... we did a "prepaid" lease.  For mine, there is no $ due from any prospective buyer. They would just have to agree to the terms.

Originally posted by @Dan Schwartz :

@Dong Yan can't the seller simply pay off the loan with the sales proceeds, through escrow? Is this a HERO project that is attached to the tax assessment of the house?

 the seller is stubborn, either apply the loan or don't buy the property

the payoff amount is 40K thought it is quite high otherwise I have to apply for the loan
Originally posted by @David Wandel :

I just bought a house last month that had solar panels on it. I had no interest in continuing with the lease agreement with the solar company. The seller had no interest in having the panels moved to their new house. Their option was to pay to have the panels moved or pay off the contract amount. I am not sure what they did. Two weeks after the purchase I had my crew remove the panels and patch the roof.

Not sure about California law but here once I purchased the house the panels became mine since they were attached to the house.

they applied for a loan that's why I have to reapply the loan in order to buy the propertyOriginally posted by @Carson Wilcox :

It all depends on HOW they acquired the solar.  Did they buy with a loan?  Buy with a loan attached to their property tax?  Lease with monthly?  Prepaid lease?    PPO?  All have different effects.

My house for example... we did a "prepaid" lease.  For mine, there is no $ due from any prospective buyer. They would just have to agree to the terms.

through the solar co?  If it were me... I would make them pay it off to sell it.  Clean title.  You can make it that they have to pay it off from proceeds, like any other lien.

didnt see your other posts... 40 THOUSAND in solar?  That is a TON.  In the end, you are buying a product.  if the #'s work, go.... if not... dont.  Just build that solar cost into your holding costs.

I spoke to my agent , she said , the seller insist the buyter to apply for the solar loan, if the buyer fail to get the solar loan then the seller won't see the property, so silly .

Originally posted by @Carson Wilcox :

through the solar co?  If it were me... I would make them pay it off to sell it.  Clean title.  You can make it that they have to pay it off from proceeds, like any other lien.

it is not even about the money , I have to apply for the solar loan first in order to get the property the figure makes sense the process doesn't
Originally posted by @Carson Wilcox :

didnt see your other posts... 40 THOUSAND in solar?  That is a TON.  In the end, you are buying a product.  if the #'s work, go.... if not... dont.  Just build that solar cost into your holding costs.

well... that is ridiculous.  Good luck!

How is the current owner charging the tenants for the power @Dong Yan ? Is it padded into the rent and offered as "free electricity" or is he billing separately as a power provider? I don't understand why the owner would not pay off the solar loan in escrow, especially as appraisals now will factor in solar systems as an added value asset. As @Carson Wilcox said it literally makes no sense that he would insist on loan assumption rather than pay off in escrow.

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