Due Diligence

When comparing potential investments or zeroing in on a particular investment due diligence is of the utmost importance to your efforts.  Owning real estate has risks.  You may accept higher or lower risk levels but you need to know the facts in order to weigh the risk/reward opportunity.  Obviously if two investments have identical reward opportunities but one has a significantly higher risk exposure you want the more conservative property.

Be an informed and educated investor!  Pick a company that helps you work through this process.

Over the years we took the time to obtain, review and understand many different respected companies' due diligence checklists and guidelines.  Whether you are looking to buy a wholly owned property or a TIC interest we are happy to share this valuable information that we've compiled. 

Please send us an email or call us and we will discuss this topic with you and provide you with the most pertinent checklists/guidelines.

Although many categories are of importance certain threshold questions need to be addressed primarily since failure in any of theses "key" areas might "dis-qualify" a property early saving an investor lots of time and money on further secondary due diligence. 

Some of the broad areas that might be covered include:

• Operating History
• Expenses
• Legal
• Governmental
• Tax issues
• Market Study
• Demographics
• Leases/tenants
• Appraisals
• Building/property condition
• Capital Improvements (Historical & Planned)
• Environmental
• Financing
• Underwriting
• Sponsor (if a TIC)
• Title
• Guaranties and warranties