Client Services - Due Diligence

 

A comprehensive Due Diligence needs to evaluate the following information: 
  • Three years of historic financial performance.
  • Operating budget and financial modeling going
        forward 12-months.
  • Terms and conditions of existing encumbrances.
  • Physical inspection report and needs assessments.
  • Environmental audit. 
  • Property tax analysis.
  • Market rent comps.
  • Demographic reports, when appropriate.
    Once all of the above data is assembled, you must have the ability to verify operational norms for that market area to determine realistic expectations for a property’s future performance. If the economics of the acquisition remain worthwhile after the completion of this level of review, there are still a few more critical items to investigate before a final conclusion can be reached to insure that an investor is making an informed decision.