When buying apartments, getting the Rent Roll and T-12 (Trailing 12 months of the profit and loss statement) are essential to analyze a potential acquisition. When the seller provides to the potential buyer their T-12 and Rent Roll, the buyer needs to identify problems and opportunities. After the contract is submitted, a buyer must properly perform due diligence on lease audits, contract audits and physical inspections.
By just looking at the T-12 spreadsheet, the buyer cannot visually spot trends. I have create my “Dashboard Boss”, that visualize past performance, that will confirm/deny facts that impact the property’s Net Operating Income.
When compiling the numbers, the reporting out of the deal may go to bankers and investors. So, it is wise to make it as easy as possible for them to understand.
There are multiple hurdles, set up through multiple stages of the due diligence process. Because of the many moving parts, a lot of investors follow checklists to make sure nothing is missed. One thing that a lot of checklist do not have is how to visually conceptualize the data. Our brains work in pictures and it could be difficult to spot trends.
So here is an obvious question I am going to ask you.
What is easier to understand. This…
You see, I have created a way where I will get the Trailing 12 of last months income statement (T12) and create a specialized spreadsheet for you. The above picture is accumulative.
The below picture shows what is going during a specific month.
When you use Dashboard Boss, simply provide me the T-12 spreadsheet/PDF provided to you by the Broker/Owner. I will get that spreadsheet and convert it into a visual tool you can analyze to spot trends that impact the Net Operating Income. It will also help you identify priorities and confirm assumptions. Take this information and apply it to your future operations.
Why use Dashboard Boss as the seller? This will add credibility to the deal, and it will make the buyer’s job easier. As the seller you are selling for a reason, the more obstacles that appear the longer the potential close. So, use Dashboard Boss to get paid quicker. Just take a screenshot of the data and include it in your Offering along with the Profit and Loss Spread Sheet.
Using Dashboard boss, will allow for you to be a detective and find clues by looking at the pie graphs and bar graphs.
There are too many parts as is with the due diligence process and learning how to create graphs with the T-12 like what I have made is not a walk in the park. It takes skill outside of underwriting to get the data and transform it into a visual that a 10 year will understand.
There is a comparison you have probably heard that it takes a person to look at 80 deals to get one deal. When analyzing a deal, you may run a quick and dirty run to see if it makes sense. If it does make sense you go further in the due diligence process.
People only tend to remember 10% of what they hear and 20% of what they read. However, they tend to remember 80% of what they see. Therefore, most of us use the visual aid to express ideas or share information. Dashboard Boss will give you a quick, clear understanding of the information. Look for patterns that are hidden in the numbers.
With Dashboard Boss You Will:
- Identify hidden booby trap expenses.
- Visually know what the numbers represent.
- Compare the percentages that are for the property to local standard percentages.
The price is as follows:
5-15 units = $99
16-50 units = $199
If you are interested contact me!