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#119945 - 04/03/06 02:17 PM Utilizing Schedule E
alvin Offline
Veteran Member

Registered: 09/02/04
Posts: 992
Loc: dev
I've read that using the sellers tax schedule E is one of the best way to determine an accurate NOI. Also I've gotten recommendations to date back 3 years on the seller's schedule E to see if the owner's been messing with the numbers before selling the property and to make it seem like its a good deal for the next buyer.

how far should i run if the seller declines to give me a copy? lol

thoughts?

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#119946 - 04/05/06 07:45 AM Re: Utilizing Schedule E
Paul Oaks Offline
Major Contributor

Registered: 06/23/04
Posts: 3370
Loc: Central Illinois
Alvin,
If the seller refuses to give you the Sch E then that seller has something to hide. I try to go back 5 years on sch E's. If the seller is less than savy then you may need to make them understand you only want the Sch E and not thier entire return.

As a Consultant or as an Investor I also look to the Sch E to determine what maintainence has been done to the property. If you have 5 yrs of Sch E and almost no expenses for maintainence or improvements then your inspector should look deep cause there could be major surprises if you plan to keep the property.


 Quote:
Originally posted by alvin:
I've read that using the sellers tax schedule E is one of the best way to determine an accurate NOI. Also I've gotten recommendations to date back 3 years on the seller's schedule E to see if the owner's been messing with the numbers before selling the property and to make it seem like its a good deal for the next buyer.

how far should i run if the seller declines to give me a copy? lol

thoughts?
_________________________
Paul Oaks
Oaks Real Estate Group

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