I am a FL licensed agent. I have been approached by an investor interested in a multi-unit property. I have not had any experience in commercial, although I have wanted to become more involved. What information does an investor need to make an informed decision? I know a rent-roll is one document an investor looks for. Is there anything else? What questions do I ask, etc. so I don't sound too uneducated when I call the listing agent?
Thanks in advance...
I don't have experience with multi-family, but you should be asking for a pro forma and then checking the numbers that are provided with what you have worked up from your end to make sure that numbers aren't being fudged or anything like that. You'd also probably want to know how many leases are coming up, what kinds of leases are in place, what the leases actually say, and what contracts the building owner/manager already has in place with landscapers, handymen, contractors, etc. Maybe more experienced people can chime in but that's all I have off the top of my head.
I don't want to discourage you from trying to learn or get into a new field but if your investor is approaching you to be their buyer's agent, I would decline. You don't have the experience and you should not be learning at their expense.
That said, what you'll want to get is the rent roll and the trailing 12 months of P&L statement (called the T12). If there is a listing agent there will likely be an OM too. You won't get lease and contract information until you get the property under contract so don't both to ask for those yet.
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