Investor · Los Angeles, CA · Member since 2011 · 242 posts · 61 votes
Hello BP,
Yesterday 1/12/12, I got a 6plex under contract in southern California. Four 2bd+1 and Two 1+1. Owner is financing with me putting 30% down. Building is currently fully occupied. What documentation should I ask from the seller. I will be buying and holding the property.
My current list is:
1. Rent roll for 2009, 2010, and 2011.
2. Who is paying utilities? If owner then I need copies of the 3 past bills.
3. Copy of leases. Is everyone current?
4. Copies of bank statements showing regular rent deposits.
5. Who is managing the company currently?
What am I missing? This will be my largest building and I could really use any input not just on paperwork, but what are some deal killers/red flags for you.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
14y
When you take over, be sure to have efficient bulbs installed in those common areas (either compact fluorescent or LED). Cost of operation will be lower on the electricity bill, and they have longer life (replacement less frequently = less work to do).
Investor · Los Angeles, CA · Member since 2011 · 242 posts · 61 votes
14y
Just an update. My final offer is in place and I will be hearing back from the seller tomorrow morning. I am getting credit at closing. Again I appreciate everyone's responses. 2% and 50% guidelines are more than satisfied. I also know this area well and have another rental propert near by.
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
14y
Glad to hear you are getting the credit. Are you financing the property? If so, you will need to check on the requirements with your lender about what they will allow the seller to credit.
Investor · Los Angeles, CA · Member since 2011 · 242 posts · 61 votes
14y
Closed the deal last week and everything is shaping out well. I received credit at closing and closing costs were a little under $1000. I really like purchasing via seller financing its so much better than dealing with banks and all their exorbitant fees, delays, and restrictions.