Small (6 retail units) Commercial building transaction. How much onus is on the seller for the buyer's financing?
I'm trying to figure out how much information would you expect the seller of a small building (600k) to provide? It is a single member LLC, that flows directly to the owner. The potential buyer's bank wants to see The seller's tax returns, which he balked at. Seller says he will provide a redacted Schedule E, but will redact depreciation, professional fees, vehicle- ie, any non building specific deductions line itemed on the schedule E.

Is there any reason a bank would need to see expenses not directly attributable  to the building itself? I'm hard pressed to see why the bank should be interested in expenses that don't really have anything to do with the building whatsoever.  Not my buyer, so I can't recommend a different lender, but are all lenders this invasive to the seller? TIA

Also, What kind of cap rates are you seeing in your hometown on these smaller office/retail buildings?
[{"id": "ilnyitj", "text": "Building info is what\u2019s relevant. They should uw based on a proforma of lease and other income and historical/ market expenses.", "replies": [], "depth": 1}, {"id": "ilofll3", "text": "Lenders need to confirm the income of the building.  Underwriting will not sign off on a loan without reviewing the building's financials.  There is no reason for a Seller not to offer a lender the LLC's tax returns.  Only reason to hold back is if the Seller did not operate the LLC properly.  \n\nAlso, all LLC's income flow directly to the Member(s).", "replies": [], "depth": 1}, {"id": "iloop9q", "text": "Sounds like the seller is running a bunch of bullshit expense through the property and knows it won't chin the DSC on an actual historical or claimed an NOI to the buyer and its actually significantly less on his returns (shocking right).\n\nYou can lie to Uncle Sam or you can lie to the bank but you can't lie to both... Why does the seller care about 1 page out of his 1040 versus $600,000 from the transaction?", "replies": [], "depth": 1}, {"id": "ilowvgq", "text": "Regardless of the company size, if a seller REALLY wants to sell (as opposed to just fishing for offers to see what their property is worth), they ought to be able provide a rent roll, expenses, and lease information for all current tenants.", "replies": [], "depth": 1}]