Low down payments, no credit check and guaranteed approval. This is the convenience for many investment property buyers who choose to shop online. With the internet being responsible for dramatically changing the way people do business, it is also responsible for revolutionizing the way people shop for investment property.



A conventional loan for investment property would entail an application, credit review and complete disclosure of the applicants financial situation. However, an increasing number of real estate developers, owners and brokers are offering investment property with the convenience of owner financing. A low down payment, which is followed by regular monthly payments, may result in a prime piece of investment property. Most commonly used for purchases of land, owner financing is extremely popular for investors, first-time home builders with no credit or even individuals who have past credit problems and would not otherwise qualify for a conventional loan.

With very low down payments, which are often lower than $1,000.00, many investment property sellers provide competitive interest rates and low monthly payments with absolutely no qualifying, credit check or income verification. As long as consumers continue to make their minimum required monthly payment, they will be approved.

No matter when, where or how investment property is purchased, the buyer must perform due diligence prior to signing on the dotted line. The buyer will want to make sure that he/she will receive a warranty deed on any investment property, which means it will be free and clear of any liens, and that the current owner has the full right to sell the property. In addition, it may be a good idea for the potential buyer to contact the local tax office and inquire about the most recent assessment of the investment property. This will give the buyer a good idea as to whether or not he/she is getting a bargain. If the investment property is located in another state, the buyer should request photos and even consider hiring a video professional to make a recording of the immediate area and the land for visual purposes.

When agreeing to purchase investment property with owner financing, a signed contract is a must. This is simply a contract that is drawn and signed by both parties, which will indicate the down payment required, full purchase price, monthly payments, number of payments required until payoff, a listing of pre-payment penalties (if applicable), the location of the investment property and the size and details of the same.

A valid investment property contract will confirm that the seller agrees to finance the property at a certain amount of interest and will sell the described property after a predetermined number of payments. In return, the buyer agrees to pay a certain amount each month on a specified day each month. The contract should outline the exact location, street address, size of the lot and parcel number. In addition, it must include terms regarding late or missed payments, late fees and cancellation options (if any). The contract must be signed and dated by both parties in order for it to be valid.