I often read or hear people explain the wrong formula when discussing what's needed to calculate rent roll values. It is important to understand what is the correct formula and why it matters. People generally understand that the rent roll value is calculated as a multiple per dollar income of the Annual Management Income. What often gets lost or glossed over is how we calculated that Ann...
The purpose of Due Diligence is to allow a buyer to assess the performance of the rent roll. If you get to this stage of the process then we assume both the buyer and seller are committed to seeing the deal through. Sellers should look to make the process as easy for the buyer as possible. Be prepared, start collating document's and files early. Do this well before the b...