Too good to be true?

[Tony Nuttall]

I’m new to real estate investing. Aside from buying my primary residence I have no experience. 

I came across a deal on LoopNet. It’s for a 4 plex. It’s a value add opportunity. The price is $250k. It needs a good bit of work. The part of this deal im having trouble with is that the people selling this property are offering to owner finance the $250k but will also give me a loan for $100k for the rehab. Sounds too good to be true? Is this common? They showed me comps that say the property will be worth over 500k$ once rehabbed. But you would think if they had the money to loan and they were that confident it would bring that half a million dollar sale price they would just do all that themselves? 

[Caleb Brown]

I would do your own diligence on the comps. They could be blowing smoke or telling the truth. What terms would they give on giving you the 100K rehab loan? Some owners just are too busy or don't have the capacity to take on the rehab. But other owners might try to take advantage of you. With you being new don't jump in till you do research on the area, comps, rehab #'s. Connect with a local GC and PM. A 4plex needing a 100K rehab does seem extensive for your first deal.