60 Second Insights – How do I verify the income of the property?
This week’s question comes from George and George asks, ”Dave, how do I verify the income of the property especially when I don’t trust the seller?”
Well, the first thing you do when you’re verifying the income is you match the rent roll with the actual leases and when you see they match up together then your rent roll should match what it says from the lease from money coming in and then you take a look at the income report. OK and see if the income report is matching the rent roll OK that matches the leases. And then you know here’s the thing owners can fudge that and they do it often, the dishonest ones. So what you should do is take the next step and get the bank statements so ok you give me the profit&loss statements, you give me the rent rolls and now give me the bank statements and backup the fact that this money’s actually come in and if you do that you will know that the income is actually the income.
You got a question? Put in the blog below. I might just answer next week.