Is the seller misleading me?

Question

seller is stating that a third party leasing company takes care of the rent agreements and thus will not disclose the actual rent income.  Is this normal practice?  I need to know exactly what the rents are to analyze the deal?

Nick C. · Answer

Laughable. There is no situation imaginable where the seller would not know the rent amount. Even if the seller doesn't deal with any paperwork s/he is getting a check every month for rent.

Thomas S. · Answer

The seller is feeding you a line. If your interested make a conditional offer based on seeing everything. Your agent should be able to get the information.

Account Closed · Answer

it is what they call in the business bull-----t

Travis M. · Answer

thanks guys, thought so

Matthew Paul · Answer

Go straight to the tenants and ask them .

Travis M. · Answer

think i finally got to the bottom of it, i took a look at the rent agreements which were finally sent to me, seems like the owner rents the units to the leasing company, and the leasing company then has a separate lease to the current tenants, which of course, they are not letting me see, but that is OK because I can analyze the deal based on the numbers the leasing company is paying and know that when their lease is up I can rent the property for more if not the same figures ??

Bryan O. · Answer

Absolutely shady. Walk away. Ensure if you offer you get an estoppel statement. That is the tenant and the owner agreeing on what they have agreed on. No estoppel, no closing. Either that or drop your offer substantially for that high of an obviously shady risk.

Travis M. · Answer

well that iss the other red flag, the seller on their listing is writing what the rents are and then calling it the "potential gross income".  Mind you the owners of this property have thousands of properties they are no amateurs.  So they give rent figures but call them PGI and then throw in this BS about the third party lease agreement....meanwhile I am just trying to lock down what the exact rent prices are

Travis M. · Answer

they are saying the third party leasing company will not disclose the information because then the seller would know how much they are charging, it sounds very sketchy to me

Rich N. · Answer

You think a seller would know this information.  But have the third party leasing provide the rent agreements that should include the dollars values too.

Is the seller misleading me?

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