Questions to ask when searching for properties

[Isaiah Webb]

I have been searching for Multifamily properties of all types online almost everyday for a few weeks now just to stay up to date with the area I live in. I try to stay aware of what properties are listed for and if they’re close I will visit them to get a better feel for it and the area it’s in.

Although I’m new to real estate and not ready to invest yet, I would still like to contact sellers about properties I’ve found to get more information. I know what I want to look for but I don’t know the correct questions to ask to find out if the property looks like a good investment or not.

Any suggestions on what to ask or small details to look for would be helpful. Also, any sites to search for properties.

Thanks in advance!

[Ronan Donnelly]

Hi @Isaiah Webb, If you contact sellers you are assured of learning something each time. Here are some initial questions you might want to ask:

1) How long have you owned the asset? The longer they have owned it the more likely it is that they are behind on deferred maintenance and have below market rents

2) Why are you selling? This will provide info that you can use to structure a deal

3) How did you come up with the price? Is it based off comps or off NOI

4) Have you had any offers?

5) Can you provide the financial statements for the last couple of years.

Good luck!