When to Open the Books

[Anand S.]

Hi, I have a couple of my STR properties listed for sale. A buyer is interested and is asking to see the books (income/expenses). At what point is it customary to share this? I want to at least see a POF letter. I'd ideally like to see a contract with an income contingency that is provable, e.g., I'll buy your home for $2.5MM with the contingency that you can prove it makes $30K/month.

[Luke Carl]

If it’s a 1-4 family it doesn’t matter if it makes a billion a year it’s still worth the same amount as the one next door making zero. 

If it’s a commercial property you should share this in the DD stage. Once it’s under contract.