In a pro forma model you should consider whether you have tenants who have high, standard or below standard credit quality. If, in your judgment, there is reason to expect some tenants to skip rent payments, you should make a deduction. The standard range is from 0.5% to 2%, typically, based on our observation of actual reported bad debt write-offs on historic P&Ls for multifamily properties.
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- What additional info can I view about the property? Too little info shown via link provided. Is this the only info investor see also?
- Reach out to investors on my own personal email? Will look very unprofessional.
- Renovation Re-hab costs- The memorandum states that the units have been renovated already??? Also there was no mention of any renovations needed.
- Near- Term Building Updates- The memorandum states that the units have been renovated already. Also there was no mention of any renovations that were needed.
- Deferred Maintenance- There is no deferred maintenance listed on the actual expenses provided.
- Reserve amount- How much reserves do your investors require- Some require 3 months some 6 months some even one year.
- This is not typically a property operating expense but might be an expense associated with managing investor distributions of cash flows and proceeds. You can skip this fee for now.
- ASSET MANAGEMENT FEE- Not even sure what this is or what this is for. It seems it may be the same as a management fee however, since there was no management fee listed in the expenses, the listing agent left this section blank.
- PAYROLL- No payroll listed as an expense by the listing agent.
- MARKETING- This expense was not provided by the listing agent. If you would like for me to estimate I need to know what percentage you usually use for marketing. Each investor is different. I'm using actual expenses provided.