Help Analyzing Deals

[Royce Hodnett]

Hey BP!! I’m looking to buy my first multi-family rental in the next 12 months but first want to get really familiar with the numbers. I am looking to start analyzing deals but am running into the problem that I can’t find all of the information I need on Loopnet or places like Realtor.com. I want to go further and reach out to the listing agents and ask for this information. Are there specific documents that I can request that will give me all of the numbers I would need to properly analyze the deal? Thanks for your help!!

[Michael Le]

If you're talking about apartments and not duplex/triplex/quadplex then you'll want to start with a T12 (trailing 12 months P&L statement) and the rent roll. Depending on the size and sophistication of the current owner/operator they might or might not have this.

Even if you get this information, will you know how to analyze it? The fact that you don't know what these documents are called I am guessing probably not. I would start by grabbing a book like Multifamily Millions by Dave Lindahl or the Steve Berges book to learn more about this before you start reaching out to brokers.