Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Multi-Family and Apartment Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 8 years ago on . Most recent reply

User Stats

17
Posts
4
Votes
Peter Martin
  • Investor
  • Sevierville, TN
4
Votes |
17
Posts

What are relavant questions to ask?

Peter Martin
  • Investor
  • Sevierville, TN
Posted

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.

Most Popular Reply

User Stats

3,018
Posts
3,659
Votes
Todd Dexheimer#2 Multi-Family and Apartment Investing Contributor
  • Rental Property Investor
  • St. Paul, MN
3,659
Votes |
3,018
Posts
Todd Dexheimer#2 Multi-Family and Apartment Investing Contributor
  • Rental Property Investor
  • St. Paul, MN
Replied

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

Loading replies...