All Forum Posts by: Nathan Ramirez

@Evan Polaski You might be spot one. I think this may be a IRS/tax related matter that is making him apprehensive.

@Theresa Harris so are you saying that 7 unit property for 370k is a fair deal? Would something similar be more expensive in your market? The property actually listed at 425k and we negotiated it down.

@Bjorn Ahlblad thanks for the insight...my agent suggested estoppel certificates...this is my first commercial deal so I’m still learning. I wasn’t familiar with this particular tool but I think I’m going to take this advice and use this to help verify rents and I’m leaning more towards accepting his invitation to meet and look at his financials. According to their numbers (their word only/unverified) the property is performing at a 10.5% cap rate. It sounds great but I would feel more at ease if I could validate this with some actual documentation.

I’m under contract on a 7 unit apartment complex and seller will not provide leases or any form of financial documentation validating the property’s monthly cash flow. His agent says the seller is willing to meet with me in person to show me his documents and answer any of my questions with respect to the property’s performance but won’t actually give any documents to my realtors because “he doesn’t want his business out there”. My agent suggested an NDA to give him some peace of mind but he still refuses. Is this normal? My instinct tells me he may be hiding something? Is this shady or just someone whose hyper sensitive to his privacy?

So far all I have is their word that all rents are current and that it generates X amount of money per month but I’m not comfortable making a 370k investment without actually reviewing some sort of financial documentation to validate what they have said. Should I be okay with simply seeing his books in person? Would you move forward with the deal without receiving documentation in your possession to carefully review or is it enough that he open his books and let me see the numbers?