Timing my dt3 with new points and when I have the ohm meter hooked up it shows continuity even when the points are open. I unplugged all wires coming out of stator and still no luck. Could it be a bad condenser causing this. I did have no spark when I pulled the points. I also have tried connecting my multimeter to different places. 

Points closed black stator wire should have zero resistance to ground.  Points open reading should be between 1 and 2 ohms. 

You need a meter that can measure this accurately or use a different method.  There are hundreds if not thousands of posts on this topic. 

Thanks, I have been reading. My problem seems to be that opening the points is not doing anything to the ohm reading 

Do you have the stator disconnected from the ignition switch? I found out that if it's connected to the ignition switch, the switch has to be turned on for you to see any difference when you open and close the points. So it's best to disconnect the black wire at the loom coming out of the stator, then see what happens. By the way, I don't know if you saw my thread a week or so ago, but I made a timing light and it worked much better than trying to use a meter.

 I just reread your post, and you said you did disconnect all the wires coming out of the stator loom. If you have a bulb around, even a 12 volt bulb, you might try making a test light. This is with one end going to the battery positive, and the other end going to the stator black.

youtube.com/shorts/Gu8YPB2Rvzw?feature=share

Thank you, yes all wires coming off of the stator are disconnected. Really stumped at what could be going on. I’ll look into the timing light thanks! 

Whatever I do I cannot get the continuity to be gone or the ohms ever to read 0. Is there a chance bad condenser can cause this? It’s all I can think of to be the problem right now. Am going to try and make a timing light tomorrow but I'm reading about 2 ohms the whole time no matter what I do.

From my experience the most common causes of that are: 

Digital ohmmeter (most, not all)

Points tend to get a non-conductive coating and/or someone cleaned them improperly and they aren't making electrical contact when closed. 

Incorrect wiring, possible broken wire to points or points not grounded to stator. (not common)

(If points were making contact there would be a solid connection to ground with or without condenser.)

Thanks, I'm going to try and make a timing light today and hopefully, that will show me some results. Also I'll have to clean off my points contact. Hopefully thats all it is 

Got it, had to clean off the points even though they were new haha MarkT was right per usual. Also my multimeter was working correctly but I ended up making a timing light and that worked great. No I’m torquing the magneto back on but can’t find my holder. Would hitting it with a 3/8 drive impact as much as she’ll go be enough or do I need to buy a new holder 

3/8 drive won't be even close to the ball park in my opinion. Need a half inch breaker bar & a holder. I go overboard tightening but all my bike tapers are pre damaged by others.. If no tool i wonder if you could use a heavy flat piece of steel set against the end of one window at an angle & let it stop Solid against something--footrest etc. Whatever it needs to be solid & not in gear with the brake on etc.