I am looking at purchasing a billboard where the owner is financing the deal. The owner mentioned adding a clause that would have me receive 1/2 of my the money I would invest if for some reason the land owner decided to sell the property or redevelop it. I have been a little concerned because the owner seems to be going out of his way to make this deal appealing to me.(0% interest, 5% down payment) It seems almost too good to be true! What should I find out before purchasing? I am a little afraid that the billboard owner is aware of something that I am not. Thanks in advance for the help.
Renny,
You’re right, it sounds fishy. One concern I have is the plan if he sells the property and you have to take the sign down. You only get 1/2 of your money? Over what time frame does it ammortize? The loan terms sound equally out of the ordinary, and I agree that it may be a scam.
We have a service here at the site for $199 where I review deals to see if they are legitimate. Before you buy this one, I would definitely do that. It just sounds too odd.
This a 60 month financing deal. I have checked and according to the state he does own the billboard. He told me he owner financed the billboard himself and I was able to find out by talking to a clerk at my state office that he purchase the board in Feb. of 2008. but he has been trying to sell it on this site since May of 2009. It just sounds as if he is aware of something and wants to use money from me to carry him through a down economy because why else would he keep mentioning things like “if I have to turn the board back over to him for some reason” to me it sounds like: 'Yes I know could be potentially coming down the road but this cash I receive from you would carry me until that happens. Another thing he has been assisting me in lining up advertisers for the board. If he can line up advertisers and make almost as much as I will be paying him ($2500 a month for lease vs. $3000 on owner finance) on a monthly basis why do a lease option. I will contact you once he has given me a copy of the agreement for you to take a look at.
Renny,
It’s been for sale since May 2009? That’s over a year. Be very careful.