Due Diligence on property in East NY, Brooklyn

[Greg Hills]

How much diligence should I do before vs. after making an offer?

Also, does anyone have a lawyer they recommend for doing multi-family deals in Brooklyn?

[Ahmed Saad]

Hi @Greg Hills,

It depends how many families? 2-5 vs 6+ are very different beasts. Any rent stabilization/control will significantly increase you due diligence requirements especially since the new laws have been passed.

Assuming it’s less than 6, you should at the minimum:

Get a rent roll per apartment and a P&L (income and expense statement).

Verify taxes. I met an agent passing off properties that had tax abatements expiring in a  year or 2. 

Assuming you’re going to see the property you should check the physical condition of the property. Basement basement basement. I can’t stress that enough.

Also check the roof.

Oh, and check DOB BIS for violations! That’s a major one!

That’s all before an offer.

I can recommend my attorney if you need one. He’s very experienced and he’s friendly.