What Financial Questions Does a Limited Partner Need To Ask A General Partner

Episode Highlights:

Key Questions for Limited Partners:

1. Requesting T12s and Rent Rolls:
   • Understand why it’s vital to get the actual T12s and rent rolls, not just projections.
   • Learn how to analyze patterns in income and expenses to gauge property performance.
2. Evaluating Lease Exposure and Rent Balances:
   • Discover the importance of assessing lease exposure and outstanding balances on the rent roll.
   • Learn to identify potential issues with month-to-month leases and delinquent tenants.
3. Capital Expenditures and Budgeting:
   • Why it’s critical to review the general partner’s budget for capital expenditures.
   • Tips for assessing if the estimated amount for repairs and replacements is adequate.
4. Market Rent Analysis:
   • How to verify the GP’s projected market rents using resources like apartments.com.
   • Understanding the implications of overestimating rent projections.
5. Occupancy Rates:
   • Differentiate between physical and economic occupancy.
   • Understand the significance of occupancy rates for financing and deal stability.
6. Operating Expenses:
   • Importance of drilling down into all components of operating expenses.
   • Learn how to compare projected expenses with market standards to avoid underestimation.
7. Net Operating Income (NOI) and Debt Service:
   • Assessing the current and projected NOI to ensure realistic projections.
   • Understanding the structure and terms of the debt service to avoid risks related to short-term bridge financing.

Additional Resources:

• Passive Investor Pro Program: Learn how to invest confidently as a limited partner with coaching calls and boot camps exclusive to the Jake and Gino community. Learn More
• Apply to Work with Us: Interested in multifamily investing? Apply to work with Jake and Gino. Apply Here