Getting Info From The Agent

4 Replies

I want to start practicing analyzing properties (multifamily...2-4plexes) and I'm putting together a list of all the data I need to input into the biggerpockets calculator. 

Regarding info that I need to get from agents at open houses...I've been reading both to believe the numbers and not to believe the numbers. So if I don't go by their numbers, where can I get the info from? Also, what other questions should I add to this list as far as things I should ask the agent when I go to look at properties? Anything on this list that I should NOT ask them?

-Is it rent control?

-What is the market value rent?

-Is it turnkey? Any repairs needed soon?

-After repair value

-Estimated Closing costs

-Estimated repair costs

-Total gross monthly rent

-Other possible monthly income

-What expenses are paid by me and what are they? (electricity, lawn care required? water, sewer, garbage, HOA's, insurance)

-Monthly property taxes

Please excuse my possibly bad list..I'm very new to this! Thanks so much in advance

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I've been reading both to believe the numbers and not to believe the numbers. So if I don't go by their numbers, where can I get the info from?

In a buyer's market, yeah go ahead and take advantage of what that affords you.

However, in a seller's market, the following applies: "Trust... but Verify."

  • Take the numbers at face value until you have it tied up in contract so it's yours if you want it.
  • During your inspection contingency, do the "verify" part. 
  • If the listing agent was honest and accurate (most agents are honest people IME, believe it or not), great! 
  • If it turns out that the listing agent and/or seller misrepresented a bunch of stuff, and now that you have accurate data the deal doesn't make sense, go ahead either renegotiate, or if that isn't proving useful go ahead and invoke said contingency, recover your earnest money deposit, and let that be a lesson learned for the listing agent and/or seller about the value of honesty when it goes back on the market, meaning they have to pay another month or two of PITI and other carrying costs, maybe their 1031 exchange is screwed up, et cetera. Karma for being dishonest.