# Due diligence check list to invest in multi family properties



## Nugpot (Mar 16, 2015)

Hi,

I'm still new and educating myself in the field of investing in multi family properties. 
I was wondering if there's anything out there or if anyone is willing to share their knowledge and expertise in the process/checklist that we need to go through in securing a investment property(in terms of financial and legal)

For example: the documents we should ask for .. like
1. rent role
2. financial statements
3. tax returns
4. what other doc's?
5. legal doc's?

Thanks
Jay


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## Cal (Jun 17, 2009)

Given some of your questions, you should probably consider an inspection of the premises by a professional.....In regards to a formal checklist, I am sure that Just a Guy or Berubeland have what you are looking for.


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## dougboswell (Oct 25, 2010)

You should talk to a commercial real estate agent who will have the specific knowledge of what documentation al seller must present to a potential buyer. He/she can also advise you on the legal and financial aspects.


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## gt_23 (Jan 18, 2014)

I'm assuming you mean commercial multifamily, not residential multifamily. The agent who lists the property puts together a package with all the required information. Not sure what you mean by legal docs and I don't think it's typical for the seller to show you his tax returns, I definitely wouldn't.

Quality multifamily buildings usually don't last long on the market, so you need to act fast. Here's the typical sequence of events:

1) Seller's agent lists property
2) Ask for listing package from your agent or selling agent. Do preliminary analysis of the property, although on commercial deals (where financing terms vary quite a bit) you can't be absolutely sure of the value at this stage.
3) View the property. If interested, submit the package to a commercial mortgage broker. They can analyze the deal and get back to you with rough financing terms in 24-48 hrs.
4) Submit an offer. Get it accepted conditionally.
5) Complete due diligence, appraisal, final financing terms
6) Close or bail-out given #5

You should aim to complete 1-4 in less than a week. Anything longer (and asking for endless documents) is likely to ensure someone else scoops up the property before you.


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## Nugpot (Mar 16, 2015)

Thanks everyone ...

Appreciate your feedback.

Jay


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