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Updated almost 6 years ago on . Most recent reply

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Andre' Arceneaux
  • Rental Property Investor
  • Orange County, CA
92
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151
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Owner Finance Opprtunity at 0% (But is it worth it?)

Andre' Arceneaux
  • Rental Property Investor
  • Orange County, CA
Posted

I have a question, yet may not have enough information. My wife's grandmother has property (here in California, in the desert) that she owns free, not exactly clear (tax issues).

She is willing to sell the property in an owner finance deal (she really doesn't know how it works, yet I know once I walk her through everything and how we'd agree, she would be open to it). She has the money to pay her taxes, she just wants to get from under the property, yet there's nothing out there, and I wonder if I should be bothered with it.

What should I do to ensure I've done all DD?? Have the land/property appraised? Is there any value to be gleaned from such a situation to be used as leverage for other RE endeavors?? Structure the sale to below what the appraised mark is soas to have instant leverage??

Any/all advice is welcome. Thanks.

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Ron S.#3 Foreclosures Contributor
  • Paradise, CA
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Ron S.#3 Foreclosures Contributor
  • Paradise, CA
Replied

Collateralizing land is a tough sell to a potential lender. Appraisals are hit and miss. What's the zoning? Are there any utilities within site? What's it gonna cost to dig a well? What's it gonna cost to run electricity to a pole? Is there a Mobile gas station going in across the street? A freeway? If there is nothing out there where this land is, other than staring at a deed in your parlor with a glass of cognac while wearing a smoking jacket and listening to Dizzy Gillespie, why?

I get it if there is a piece of land the size of a football field that has a view of the Bay Bridge or Alzatraz, that you can get for a steal with owner financing but short of that, do you really want to own a piece of dessert a half a state away that's never going to be developed?

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