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Updated over 2 years ago on . Most recent reply

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27
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5
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Christina Luton
  • Stuart, FL
5
Votes |
27
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Is a major lack of DD a red flag?

Christina Luton
  • Stuart, FL
Posted

We are under contract for a motel/rv park that is a value add site. Seller has not been able to provide any due diligence including contracts with long term rv tenants, proof of income in any way, proof of any expenses and now proof of insurance. Is this lack of available information normal? Should it be a red flag for any reason? TY for the feedback!

Most Popular Reply

User Stats

684
Posts
508
Votes
Billy Daniel
  • Rental Property Investor
  • Russellville, AR
508
Votes |
684
Posts
Billy Daniel
  • Rental Property Investor
  • Russellville, AR
Replied

I've run into sellers who have almost no paperwork.  I don't automatically run from the deal.  A lack of organization and accounting doesn't mean its a bad deal, it just means you have to be sure you can make the property do what you need it to do.  My experience with this type of owner is actually pretty good.  A lack of records usually means a discount in price!

Can you talk to the tenants?  They may be able to answer your questions (somewhat)!

  • Billy Daniel
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