Page 140 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

Also have your attorney review these contracts (in the legal phase)
to know for sure which contracts are binding after the sale. You want
the ability to renegotiate these contracts or cancel them after the
closing.
Two contracts are almost always binding: laundry services and
cable/Internet. These are typically multi-year agreements in which
the seller was paid an upfront bonus for signing the deal. Such con-
tracts are usually recorded at the registry of deeds and attached to the
property.

Payroll Register

The payroll register will confirm who is getting paid what and when.

Insurance Policy and Claim History

Are there are any special stipulations in the insurance policy? Also,
who is the insurer on the property? You might be able to apply to the
same company and get a better rate than you would elsewhere.
Look at the claim history of the property, focusing on the number
of claims and the nature of those claims. If a property has too many
claims, you ’ ll have a hard time getting insurance.

Capital Improvement and Maintenance Log

This should be an up - to - date record of all major and minor changes to
the property over the past few years. If it doesn ’ t exist, that tells you
something. If it exists, but very little has been done, that also is
important.
The maintenance log will indicate to you what the common
problem is. Every property has one. It might be window leaks, regular
cracking of the concrete, or many other issues. The log will tell you
what it is, so you can anticipate this regular event both in your pur-
chase calculations and when you take over the property.

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