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When to ask for P&L, tenant ledgers, etc.
Hello,
I am looking at a mixed use property on Long Island (first floor retail plus 4 residential above) and would like to know when the most appropriate time is to ask for things like audited financial statements, tenant ledgers and/or anything I else I should be asking for? Is it (a) pre-offer (b) after an accepted offer but before contract signing (c) after contract signing during a due diligence period? I just want to make sure that I am able to fully validate all of the financials and not on the hook/forfeit my deposit if the numbers do not match what's being advertised. Also do not want to scare away the seller. Thank you!
Hey @Anthony Vaudo - good question to ask, and you shouldn't be nervous to ask it whenever you want to see it.
Sometimes this happens before making an offer, sometimes it happens during the contract review - but it should NEVER happen after you sign contracts. Even if there is a due diligence period, that is material information that should be provided up front.
Most times, the due diligence period is used for you to bring out your inspector to physically test the property (environmental, structural, roof, etc.)
You won't be scaring away the seller, this is a completely normal thing to request and your broker should be the one prodding the seller's side for this info up front (especially if the seller's side hasn't provided it already with the marketing material at the very least).
-
Broker New York (#10401359681)
- 929-349-8042
- http://www.ClosedByMo.com
- [email protected]
Thank you Mohammed! Very helpful..