I'm looking at buying a shopping complex, however the current owner won't allow access to the rent rolls for the units on the property. I'm looking at it for a buy and hold. Any ideas on how I could entice the owner to allow me access to those rent rolls?
Is it off market?
@Jonathan Hernandez they might not be motivated to sell if they’re really holding out info like that if it is off market. Unfortunately it might be more of a long term lead down the line if that’s the case
Yes it's a FSBO shopping center.
Okay, that makes sense. Thanks for that advice!
Sounds like he doesn’t really want to sell it or he has something to hide?
Very strange. Not sure the stage of the contract your in but have contingencies been removed? What are the terms of the contract saying? Are you ready to close? Is your relationship adversarial with the seller? Not sure how many tenants there are but if your buying it cheap enough then you may just do a proforma based on the financial health of the tenants. Are they all paying? Either that or start knocking on doors and introducing yourselves.
@Jonathan Hernandez Write your offer with a contingency that says something like "This offer is contingent on a satisfactory buyer's review of tenant leases and payment history."
Don't forget to get estoppel certificates before closing.
@Jonathan Hernandez . I’m guessing you don’t currently have a contract? If you’re not under contract and that’s the only reason he’s unwilling to provide the rent roll, I can understand that. If that’s the case, use whatever information he provides for purposes of determining your offer price. Since this is a commercial deal, your offer should include a provision for “Seller Deliverables” (items that must be delivered within x days after the effective day of the contract. Typically 5 -10 days). At minimum, seller deliveries should include all leases, rent roll, third party contracts, etc. Additionally, owner’s delivery of estoppel certificates (google what these are and what they’re intended to do if you’re unfamiliar) from all tenants shortly prior to closing should be a condition to your obligation to close. Estoppel certificates may not be in the cards if he’s an unsophisticated and unrepresented seller, but if he’s not willing to provide the rent roll and leases once the property is under contract, you should be wary.