Unknown = risk.

A lot of unknowns here but you absolutely need an attorney to be drafting up the documents and determine if you are having investors be active or passive as that will bring securities into the mix.Ask if you are investing direct vs fund of funds model also will play a role.Start with a securities attorney first to map it out.

The property lead status is unknown, there was no inspection done, but the house is built in 1910, so I figure what that means.

Just keep an eye on it and make sure there are no unknown fees.my HELOC is 8+% so I don’t have the luxury you do to make a low risk 2% return.

PP would be around 2M and primarily POH and the age of the homes is currently unknown.

The paralysis may be coming from the unknown.

I'm approved by the bank for a project already, so I need to present the bank with our proposal 7. work through rest of the construction life cycle with general contractor what i'm confused with is, how do i make sure to get least number of surprises the lead bumping up to project cost significantly (small additional cost will always be there ) - like sewer/water is on the wrong side of the street we need special contractor and additional work done, very huge storm pond is needed, etc.. can i put a contingency in the land deal so that i can get enough time to square out all such unknowns related to that specific property ? 

@Alejandro Lozano1) most owner finance deals carry a higher rate than current market rates2) very few sellers would be foolish enough to accept a zero down paymentYou’re assuming you’ll be able to sell this owner financed contract to some random person, unknown to the seller.

@Ari EvansWe are a lender and have taken back properties in the past - rarely do we renovate but we never step foot in them so for our disclosures we put unknown on everything because we do not knowA contractor or someone else may have but we as the seller did notSo you cannot assume or prove the seller did anythingThis sounds more like you got a really bad inspectionDid you walk the home inspection with the inspector?

Plan for complete rehabs to take a month longer than estimate because of unknown issues.