What are relavant questions to ask?

[Peter Martin]

I have a person that needs help with down payments for a commercial property. That's all I know at the moment. What are questions I need to ask to find out if this is a worthwhile deal?

I can think of current rent rolls, rehab needed, occupancy rate, number of units, current value, current cap rate, current income/expenses.

I'm a beginner here doing some gap funding currently and looking for SFR to flip, but want to get into commercial too.

[Todd Dexheimer]

What type of rate they're paying, collateral, position you'll be in. Equity or debt. On the building you should be getting a complete break down of the rehab needed and what experience they have and what happens if they overshoot the budget. What's the Internal rate of return, Net operating income, 1st mortgage loan amount, interest rate and terms. You will also want to find out about the market and sector. Why is the area going to support their plan and what is the long term forecast? Job growth, population growth, saturation, new build permits pulled and current projects along with recent new construction vs what has been traditional. What is the sector projection (apartment, office, industrial, etc)? Class of the building and Class of the neighborhood and surrounding neighborhoods (A, B, C, D). Is the city or county putting money into the area? What are the landlord laws like? What are the current lease structures and what is their plan for the lease structures? Are they doing a phase I &II environmental? Condition of roof and exterior. Who is operating the building (manager or themselves) and what is their experience