Page 135 - Trump University Commercial Real Estate 101

Ho w to Disco ver the Truth behind a Deal

in experience and knowledge. Before you delegate, you really should
know something about the task you ’ re delegating.

Examining the Seller ’ s Actual Numbers:
The Financial Due Diligence

Your mortgage broker will be invaluable in this phase. She knows what
lenders will accept and what they won ’ t at the present moment. If she ’ s
any good, she ’ ll also be fast. You ’ ll know very quickly whether you still
have a live one.
And it won ’ t cost you a dime. Of course, I ’ m assuming you ’ ve cul-
tivated your broker and you ’ re not simply sending garbage over to her,
expecting her to review everything the cat drags in. After you ’ ve done
lots of deals and made the broker some serious money, you can think

about having her review them first. For now, only run deals by your
broker when you ’ re serious about them.
This is what you will require from the seller:

• Past two years of monthly operating statements
• Year - to - date operating statement
• Rent roll for current and past two years
• Past three months of bank deposits
• Existing loan documents
• Security deposit account statement
• Utility bills
• Property tax bills
• Service contracts
• Payroll register
• Insurance policy and claim history
• Capital improvement and maintenance log
• Incomplete maintenance requests

In your purchase and sale agreement, you should require that all this
information be delivered to you within 14 days from the effective date.

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