In this conversation, Tanh delves into the critical role of rent rolls in the due diligence process for property investment. He emphasizes the importance of understanding tenant specifics, lease expiration trends, and market comparisons to make informed investment decisions. The discussion highlights the need for thorough analysis to identify potential risks and opportunities, ensuring that investors are well-prepared before finalizing any property deals.
Takeaways
1. The rent roll is essential for understanding income streams.
2. Staggered lease expirations provide more stability.
3. Identifying value-add opportunities can boost income.
4. Market comparisons are crucial for evaluating rent rates.
5. Understanding tenant longevity helps predict lease renewals.
6. Check for discrepancies in rent roll and income statements.
7. Document uncertainties to address with brokers or owners.
8. Stay vigilant for reasons not to buy a property.
9. Know what the numbers mean before signing anything.
Chapters
00:00 Understanding Rent Rolls: The Foundation of Due Diligence
02:45 Analyzing Lease Expiration Trends for Stability
05:23 Evaluating Tenant Mix and Market Rent Rates
07:13 The Importance of Lease Terms and Vacancy Rates
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