Seller Won't Provide Financials
Trying to purchase a 12 unit but the owner says he can't give me the Financials because they are in his tax forms and it will cost $500 for his CPA to produce the data.
Shouldn't the the books be separate from his personal return? I know the LLC is a pass through but to keep the corporate veil in place there should be a separation between personal and business records.
Is this a common predicament?
P.S. The seller says I could pay the $500 if I want the data.
Most Popular Reply
Are you trying to get this info before going to contract? It is not unusual for a seller to avoid giving that out in advance.
You can put in an offer that has a due diligence period and say that the seller must supply tax returns and other due diligence items needed.
Anyone can go to the library and copy even a very large tax return for $10-20. Really you only need the schedules that apply to that property and that is $5 max. My accountant has sent me that kind of stuff same day PDF for free.