Broker Does Not Have P&L for properties

[Jeff Costa]

I contacted a broker about two mixed commercial/residential units being sold individually out of a portfolio of 15 properties. I asked for a T-12 for the properties and was told: "I do not have a profit & loss report for these properties as these properties represent a small chunk from a larger portfolio. We do not have each property broken out individually."This is a huge red flag to me, expecially as it appears the seller is also the property manager. I cannot understand how a P&L would not exist in some form for each property, or at least monthly operating statements or a pro-forma. This is not a mom&pop shop where you might find bad bookkeeping.

I don't see how any lender underwrites this in the absence of data. Has anyone run into this before? How did you mitigate the missing income and expense data? Thoughts?

[Henry Clark]

I would view this as a good thing.  You would need to recreate it anyways. Do what you would do normally

1.  Ask for leases.   
2.  Ask or go on line for property taxes

3.  Get full year electric bill

4.  Get your own insurance quote.

5.  Do a walk thru for physical

6.  Verify all permits for add ons.

7.  Management costs would be yours not their current.