How do I go about asking for the actual numbers on the property (Expenses and such)? When it comes to looking at large properties? I'm currently looking at a 40 unit complex that I believe is a deal but I need to see the actual numbers before I can really tell if it's a good deal. Obviously I'm a newbie but if I can find a good deal I hope to find a way to fund that deal. Thanks again for the help and have a great day!!!
It always good to ask for 2 years tax returns as well as copies of last couple months utility bills. You can look at the county auditors website to find out the amount for property taxes. For income ask to provide a current rent roll. If laundry is on site find out if that is something that is contracted out.
@Jason Vandermark are those items that someone will willingly turnover to just anyone? I know that I’ll need to confirm rent rolls and validate each lease. I did the taxes which I believe are low. County tax assessor website says they are only 2500 on an almost 1M property. Thank you for the help sir.
@Nick Mauldin : You simply ask for a T12 (YTD for 2017), Current rent roll, and a PNL for 2016 and 2015 (schedule E will suffice.)
If this is a deal you sourced yourself by calling the primary, then they may be a little cagey about providing ALL of the above, but will often provide some of it. If the property is on the market, it's not uncommon to have most of it already available (sometimes requiring an NDA.)
It's not uncommon for sellers to want to agree on price and terms before "opening the books" as it were. At that point, you'll have to get gross numbers like total monthly rent and current NOI, and base your offer on that. In the worst case, they will give you only a pro-forma (i.e. wishful thinking and lies.) Just make sure that they understand that your offer can only be as accurate as the information they provide. If they still won't open the books, then do your best, submit the offer, and re-trade if you need to during due-diligence.
Let us know if you don't know what any of those terms mean.
Hope that helps!
@James Kojo thank you for the information. I’ll keep you guys posted as to what happens.
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