verifying income
Hello all,
I am new to real estate investing. I have done most of my research and I have a contract on a property. Everything looks good. However, I do not know how to actually verify the property's income. The seller's book keeping is horrible. He says the property is 100% occupied and has given me a rent roll. But i want receipts and other proof of income. What else can I use to verify the sellers story?Any input is welcome. Thanks in advance.
Most Popular Reply
If the seller cannot prove the income and has horrible books then you CANNOT go on the sellers belief.
Some sellers will lie constantly until the property is sold and closed and run for the hills.
If you can't document what the seller is telling you then you have to assume it's not true and run numbers based on a worst case scenario. I tell sellers if you want a great price you need pristine records to justify it. With a low price there is more room for error but with a higher price it makes a much larger impact if numbers are not correct as the risk isn't built in.
So if sellers has bad records offer a real low price and if they balk walk away and give them your card and say if things change let me know.
How many units is this by the way??
No legal advice.
- Joel Owens
- Podcast Guest on Show #47
