Asking for "Trailing Twelve"

[Justin Young]

Aloha BP!

When looking at a possible property to invest in, sometime the pro-forma provided doesn't show accurate information. The data will show projected metrics vice true metrics. I want to know the best way to see historical data for properties. Can I just ask the listing agent for the "trailing twelve" or is that not allowed to do? I'm only asking because I'd like to work on running the numbers but the pro-forma just doesn't show me all the information that I need for a proper analysis. Thank you all in advance. ALOHA!

[Tom V.]

I haven't done this yet because I'm still searching for my first deal, but here's what I'm going to do when I find one.

I certainly would ask for minimum 1 year operating expenses statement, and rent roll from the seller.

You also want to get what's called an Estoppel agreement filled out from each of the tenants. It just asks them what their rent is, how long their lease is, what they paid for deposit, and a few other relevant questions. You can find this form on the BP file place here:

https://www.biggerpockets.com/files/user/kp1/file/...

This way, you have info from BOTH the seller and the tenants and you can see if there are any differences in what the seller says vs. what the tenants say.

If you have an agent, let him or her make those information requests for you. Otherwise, go right to the selling agent with your inquiry. They may say that you need to make an offer first before they give that info, but you can just make a contingency in your offer that states you can change your offer depending on what you find out from the operating expense reports and estoppel agreements.

Again, I haven't actually done this yet, but that's what I've read.

Hope that helps. Good luck!