A commercial property can look perfect in the listing:
- “Stabilized”
- “Strong occupancy”
- “Consistent NOI”
And then you buy it… and realize the income wasn’t real.
This is one of the fastest ways investors get clipped in commercial:
Ghost tenants.
Not always “fake” in a criminal sense—sometimes it’s just messy reality:
- a tenant still shown as “occupied” but not operating
- a tenant behind on rent with side agreements the seller didn’t disclose
- a tenant that’s month-to-month but marketed as “stable”
- a suite that’s “leased” but effectively vacant
If you underwrite based on a rent roll + T-12 alone without verifying occupancy and lease reality, you can destroy your projections on Day 1.
Verify occupancy like a buyer, not like a hopeful investor
At minimum, your diligence should confirm:
- who is actually in each unit
- what they actually pay (and whether it matches the lease)
- whether rent is current
- whether there are disputes, promises, offsets, or landlord obligations
Estoppels force reality to show up
An estoppel certificate is one of the cleanest ways to reduce “rent roll fiction,” because it makes the tenant confirm key facts directly.
Want my due diligence checklist?
Comment ESTOPPEL and I’ll send you my due diligence checklist.
Most People Wonder Why They Feel Exhausted by Noon
Author: Joe Evangelisti
Most people wonder why they feel exhausted by noon.
Look at the left column. That’s your answer.
The good news: the right column is also a choice.
Protect your energy like it’s your most valuable asset.
Because it is.
