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Updated almost 9 years ago,

User Stats

7
Posts
1
Votes
Nathan Visser
  • Hamilton, Ontario
1
Votes |
7
Posts

How do you double check finances given?

Nathan Visser
  • Hamilton, Ontario
Posted

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! 

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