What Info to Request from Listing Broker?

[Ethan Anderson]

Hi BP, I am newbie looking to get some experience underwriting small apartment complexes. I have found a few properties on Loopnet that could be good practice.

Is there an industry norm for how financials are shared with potential investors? For instance, monthly rev & expenses for trailing 12 months, and annual financial statements for the last X years? 

Do brokers tend to share info on tenants (leases, rent applications, etc.) with potential buyers? 

Is there info that brokers typically will not share until more interest is shown by the buyer? That is, information the broker will not hand over until the buyer at least walks the property or shows proof of financing? 

Thanks for your help!

[Robbie Reutzel]

In my experience it depends.  Some brokers will not share anything without proof of funds which is annoying.  If you are on the smaller side I have found that some landlords don't have the information.  Even in complexes that are 15-20 units this is sometimes the case which makes it difficult.

I would say you should ask for rent rolls and expenses for at least 3 years but you may not get it.  Also, make it clear you are not interested in pro formas and will only be offering based on actuals.

Hope this helps.