What do I request from the seller when vetting a 12-Plex?

[Alissa Engel]

Good Evening!

I am looking at buying a potential 12-plex.  I've only purchased duplexes and single family in the past.  I know that I need to analyze a commercial deal differently (requesting much more information).  I asked the selling agent for the following information:

Taxes

Profit and Loss Statements

Utility Bills

Current Leases

What am I missing?  Is there anything more I should request?  Am I using the correct "lingo"? 

Thanks for your time and advice!

Alissa

[Alan Brown]

@Alissa Engel, send my regards to Montana!  I miss it badly!  I’m on the east coast now and my wife thinks of Montana as my mistress..

I just bought a couple of buildings here, and after being out west for 40 years, I tend to want  to trust a handshake or a persons’s word!’ DONT DO THAT!!

EVER!

Rent roll: absolutely get a SIGNED one.  And then go talk to tenants (whether the owner approves or not)— in fact, don’t ask permission, just act dumb and apologize later if someone has a problem.  You’ll find out a world of information 

Spend as much on inspections as you can and don’t worry about inconveniencing tenants.  Take your time and know every inch of you can, particularly furnaces, water heaters, roofs, foundation— that stuff is excellent negotiation fodder, and more importantly, it will eat you and any profit alive .  Hire a specific heating person for heat and AC. And an actual roofer to get on the roof.

Get copies of all leases and READ them.

Go to the city and see if there are any open permits, and if there’s a rental department, and/or a health Dept, go there.

Probably more than you want to know, and maybe you already know all this, but after many years of doing this, I tend to be too relaxed, and wish someone would slap me around each time!

Good luck!