Page 150 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

seller told you. Tenants will indicate what they are paying in rent,
the term of the lease, the amount of their security deposit, and which
other expenses (such as utilities) they are responsible for paying.
Compare the tenants ’ understanding with what you were told by
the seller ’ s rent roll.

The Big Picture

As with the other due diligence phases, step back and review the results
of the legal due diligence. Judge what are minor inconsistencies or fi nd-
ings, and what truly merits a discussion with the seller or seller ’ s broker.
A word of caution: Your reputation is everything in this business.
With each deal you do, your reputation grows — or shrinks. Do not
interpret all the due diligence items here as separate opportunities to
renegotiate. They ’ re separate steps, but unless you ’ ve just uncovered a
deal - breaker, you should wait until you have all the results.

You may find that the seller ’ s records were off in her favor for most
items, but that a few items are off in your favor. For instance, your
engineer may report that the mechanical systems can be fixed and not

replaced, thus saving you money.
Once you have all the information, you ’ re in a position to look at
your original offer and assess the big picture. With all that you now
know, is that price still a fair deal for both parties?
Pick your battles by overlooking the small stuff and focusing only
on the issues that simply cannot be ignored.
The mark of a professional is not how tough a negotiator she is; it ’ s
how good are the deals she does. The easier you are to do business
with, the more primo deals brokers will send your way.
Once you ’ ve completed your due diligence and have looked at the
big picture, notify the seller and the broker as soon as possible of your
fi ndings. Don ’ t wait until the inspection date arrives. Your seller and

broker will appreciate being notified early, and they ’ ll remember you
on that next great deal.

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