Most of us were taught not to be nosey.
“Stay outta grown folks business,” is what my mom used to say. And I sho’ly, did. IYKYK.
“Mind your business.”
“Don’t pry.”
Yeahhh… no.
That advice doesn not apply when you’re buying your first or fiftieth commercial real estate investment property.
Because when you’re about to drop five, six, or seven figures into an asset that promises passive income, generational wealth, and maybe your ticket out of the 9-to-5—being nosey isn’t rude.
It’s required.
First-time commercial real estate investors get in trouble when they act like buyers instead of detectives. But the ones who peek behind the drywall? Who ask if that water stain is recent or just an old battle scar? They build portfolios worth bragging about.
Here’s How to Be Nosey Like a Pro (Without Being Annoying)
1. Ask to See the Real Financials.
No, through the broker’s “pro forma” rose colored glasses everything look like a gold mine.
You want to do a deep dive financial audit:
-
Rent rolls
-
Utility bills
-
T-12’s
-
Leases (yes, read them)
-
Insurance quotes (call local insurance agents and confirm the rates)
-
Property taxes and when they last changed
If they say, “We don’t have that yet,” your next words should be, “Then I’m not ready to move forward yet.”
2. Go Full Scooby-Doo on the Neighborhood.
Visit during the day, at night, on weekends, and after a rainy Tuesday.
Watch:
-
Who’s hanging around outside?
-
Are the lights on in vacant units?
-
What about the city zoning office? Any code violations on the books?
-
Is that music and mayhem being all loud at night?
- Call 311 (non emergency police). Have they had a lot of complaints at that building?
Google Maps doesn’t tell the whole story. Real people do. Go ask that ‘one lady’ who has all the tea. Yes! You should be able to find her quickly – she met you and asked who were you the first time you were walking in the door of the building.
3. Channel Your Inner Toddler
This is not the time to be polite and passive.
Because What You Don’t Ask Might Cost You Everything!
👉 What’s that?
👉 Why is that like this?
👉 Who pays for this if it breaks?
👉 Wait, the tenant’s cousin manages the building? Do they get reduced rents?
TLDR;
Sometimes you gotta be nosey…
Because playing small, staying silent, and waiting to be “invited” into the inner circle? That’s a surefire way to stay on the outside.
Start asking. Start learning. Start poking your head into the rooms you know you belong in.
Your next six-figure deal, your dream partnership, or your favorite new tool might just be one curious question away.
Once your done snooping around and negotiated a sweet deal with a 1.2 or higher DSCR, be sure to check out my 5 min funding quiz to verify the fundability of your deal