I Need Help Regarding Multifamily Properties
Hello Everyone! I am hoping to get help here. I am brand new into doing Multifamily buildings. I have found 2, but I'm not sure exactly what the due process is here. I am trying to find someone who I can Partner/capital partner/co-pilot/Investor who is experienced in this type of area. I would like someone to go over the properties I found and let me know if they seem to be good deals. On Monday, I do plan to schedule a call to the listing agent and get more information, although I'm not entirely sure what I should be asking. I live in Nevada, but the properties I have are in Coos Bay, Oregon. Ultimately, I would love to join a "team" of multifamily groups who can show me the ropes in getting these things done. I don't know if it matters or not, but I do plan on moving to Oregon anyway. I have also thought of being a GP/sponsor in the deal with a capital partner. Is there anyone or a place that I can look into for help with this? I've been working on it for the past week. If you could recommend anything I would truly appreciate it. Thank you for your time. ( I apologize if this is some way a self - promotion? I'm only trying to get help with my situation!)
Sincerely,
Tara Witherbee
Most Popular Reply
The due diligence process is similar to small multifamiles except for some of the terms used. You essentially have to verify every claim made by the seller before the sale is finalized.
Request the Trailing 12-Month (T-12) financials, current rent roll, and 6-12 months of bank statements to verify that the reported income actually matches what hit the bank.
Physical Inspection: Hire third-party engineers for a Property Condition Assessment (PCA) covering the roof, HVAC, foundation, plumbing... This includes assesssing the deferred maintenace and estimating turn costs. te turn costs.
Lease Audit: Cross-reference the rent roll with the actual signed lease agreements. Look for hidden landlord concessions, verify security deposit balances, and check for delinquent tenants
Legal & Title & City Violations Order a title report to check for liens or encumbrances, and verify local zoning codes and certificates of occupancy.
Regarding making an offer- It usually starts out with a Letter of Intent (LOI) before. moving to a formal contract.
Drop me a DM and I'll make a recommenation of someone that may be interested in co-piloting. (using your words)