Every question a new investor should ask

ATTENTION NEW INVESTORS!!

One of the most common conversations we typically have at our second or third meeting with a new investor (schedule with me now at this link) is around the topic of not knowing what question to ask or more specifically how to evaluate an opportunity.  Whereas everyone really needs to develop their own criteria as I would never give investment advise, here's some thoughts to questions you should ask.

1.What is the current financial performance of the apartment complex, including rental income, expenses, and occupancy rates?

2.Are there any planned or recent renovations or capital improvements to the property?

3.What is the current debt on the property, including any mortgages or loans?

4. Are there any pending legal issues or environmental concerns related to the property?

5.What is the neighborhood's growth potential and market trends for rental properties?

6. What is the average length of tenancy for current residents, and what is the turnover rate?

7.Are there any upcoming zoning changes or developments that could impact the property's value or rental income?

8. What is the property's maintenance history and any outstanding maintenance issues?

9. What are the current and projected property tax expenses?

10. What is the exit strategy for this investment, and what is the owner's long-term vision for the property?

11.Can you provide a breakdown of the property's income and expenses, including a pro forma statement for future projections?

12.Are there any unique factors or challenges specific to this apartment complex that I should be aware of?

13.What is the owner's expected return on investment and the proposed terms of the investment deal?

14.Are there any restrictions or covenants that may affect my ability to make changes or improvements to the property?

Thanks Ellie Baxter and B and F Capital for helping me put this together!

What other questions do you think should be asked?  Comment below!

David