Seller Background is Shaddy Still Proceed?
I am looking at a 6 unit apartment complex striking out with having a real estate agent helping me I began to dig into the property myself seeing if I could get a contact name or number. With some research I found the seller of the property has had some run-ins with the law buying stolen goods to sell for a high profit. Doing my due diligence and speaking with property managers the property could have a cash flow of 955.00 a month. Skeptical on what the seller might be hiding or if it is someone I want to be associated doing business with. What are your thoughts BP?
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@Andrew Cook I have a couple of thoughts here. For starters, do you really want this deal? $955 per month proforma cash flow on a six unit is pathetic. You can buy a duplex for less than $150,000 and get that.
Secondly, the reputation of the owner is only relevant to a point. Once you buy the property it is officially under new management and you might have to get rid of some of his dirt bag tenants, as a worst case scenario. Other than that, you can clear everything else up during your due diligence. Make sure to review his leases, and you want to see bank statements to confirm payments. I would also go over the inspection report in great detail. Once the seller is out of the picture, there is no dark cloud that follows the property. Still the numbers dont excite me at all.