Misrepresenting the income of a property is fraud. Where I have any suspicion of such a thing I have the seller and/or his broker sign the rent roll at the closing along with a statement that the rent roll is "true and correct" as of the date of closing.
As far as an audit in advance. You could go around to the tenant(s) while under contract and introduce yourself, explain that you are buying the building and that you want to make sure the agreement is as it has been represented and ask them. I've never done it but it would qualify as due diligence.
And the easiest way to audit the rent roll is to take a sample of the leases. If they are forging peoples signatures they are getting into even more trouble...[ Edited by rmdane2000 on Date 11/17/2004 ]
Hard money?
Best bet would be Investwell (UMTH)
65%ARV
6 mo no payments
12%
100% of Purchase & Fix
No money down!
Misrepresenting the income of a property is fraud. Where I have any suspicion of such a thing I have the seller and/or his broker sign the rent roll at the closing along with a statement that the rent roll is "true and correct" as of the date of closing.
As far as an audit in advance. You could go around to the tenant(s) while under contract and introduce yourself, explain that you are buying the building and that you want to make sure the agreement is as it has been represented and ask them. I've never done it but it would qualify as due diligence.
Its Rent Roll...for future reference...
And the easiest way to audit the rent roll is to take a sample of the leases. If they are forging peoples signatures they are getting into even more trouble...[ Edited by rmdane2000 on Date 11/17/2004 ]
Mark,
Thanks for the help.
Robert
[addsig]
the tentants and looking at lease agreements is the best route. after the fact will be a legal and costly {attny. fees} headache..km
Kenmax,
Thanks.
Robert