Welcome to another insightful episode of the Jake and Gino podcast! In this week's episode, Gino Barbaro, one of the co-founders of Jake and Gino, dives deep into the essential questions that limited partners (LPs) need to ask general partners (GPs) when evaluating multifamily investment opportunities. This episode is crucial for both passive investors and those raising capital.

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.

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