Full Financials on a Potential Offer

General Real Estate Investing
1

Hi,

I don’t have a subject property in mind. This is just one of my concerns because I’m about to jump head first into commercial real estate investing for cash flow.

Question: When I find a deal and ask the seller for his full financials, what documents should I expect him to present to me?

dlmcgill

2

Why are you asking a seller for his financials?

I don’t show my buyer’s any financials.
I will show them proof of ownership if requested, but I don’t recall ever being asked.
Title company verifys ownership before closing.
I will show renter’s proof of ownership before I rent to them if requested.

Did you mean buyer?
A buyer should show either proof of funds, line of credit, or preapproval for loan amount greater than purchase price.

3

Hi,

I think Pete what dlmcgill was asking is what financials should be provided as the buyer of a commercial property?

That answer is:

  1. Rent Rolls.

  2. Copy of Leases or Rental Agreements.

  3. Income and Expense Statement.

  4. Accounts Payable for Expenses.

  5. Copies of all Bills and Expenses.

  6. Bank Statements.

               GR
4

As the English would say, “Spot On” GR! That is exactly what I was asking. Thanks a million.

dlmcgill

5

GR is correct but just start with the income and expenses. If you like the numbers there and fits your investing criteria then you move forward with the rest for verification.