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Updated almost 9 years ago,
How do you double check finances given?
Hi everyone,
New to everything, trying to secure my first deal, and after looking at the financials the property looks like a good cash-flow.
The property is a newly renovated 3 story, 6-unit building and the numbers they have given me are
Annual revenue: 55,300 (including [potential] income from laundry [1,600])
Annual expenses: 15,300
I know the 50% rule is just a general rule of thumb, but this seems unrealistic to me. Am I just being pessimistic and trying to find a reason not to do my first deal? or should I be somehow making sure these numbers are valid. I assume it's against the law to give out untrue numbers, but just wanted some feedback.
Thanks in advance!