Asking for a profit and loss statement

4 Replies

Hello, all! I’m new to these forums, and to real estate investing in general. To get started, I’m planning a house hack in central Florida.

My question is this: at what stage is it appropriate to ask the seller for a profit and loss statement? Can I ask for that before I put an offer on a place, or does that more reasonably belong to the due diligence phase?

The background: One of the duplexes I've got my eye on already has tenants in both units, and the seller has said she won't disturb them to show the place until there's an offer on the table. (Is this normal? I can sort of understand the reason, but it feels a little scammy.) I'm not willing to put an offer in on the sole basis of a public MLS listing, so I was thinking of asking for a P&L statement and some further information on the current leases and recent capital expenses before committing anything. Is that okay to ask for?

Thanks for any help!

Originally posted by @Brian Hamilton :

Hello, all! I’m new to these forums, and to real estate investing in general. To get started, I’m planning a house hack in central Florida.

My question is this: at what stage is it appropriate to ask the seller for a profit and loss statement? Can I ask for that before I put an offer on a place, or does that more reasonably belong to the due diligence phase?

The background: One of the duplexes I've got my eye on already has tenants in both units, and the seller has said she won't disturb them to show the place until there's an offer on the table. (Is this normal? I can sort of understand the reason, but it feels a little scammy.) I'm not willing to put an offer in on the sole basis of a public MLS listing, so I was thinking of asking for a P&L statement and some further information on the current leases and recent capital expenses before committing anything. Is that okay to ask for?

Thanks for any help!

 Ask for that sort of stuff during your due diligence period after you have it under contract. 

@Brian Hamilton

Write the offer "contingent upon viewing the property"..  or "subject to visual inspection" however you want to add it in the additional terms on the purchase agreement..  If its a dump, you can bail on it..   Its pretty common, as many sellers do this so they don't disturb the tenants..  No reason having dozens of tire-kickers walking thru the place disrupting the tenants lives..  

You should write in the contract that the seller will give you copies of leases and other info within 7 days of opening escrow.. 

Good luck, congrats!