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What do Due diligence do you do?

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Rigo V.
from Morris Plains, New Jersey

posted over 1 year ago

can everyone share a list of the due diligence they do once an offer has been accepted? (i.e request bank stmts to verify rent rolls)

Thanks

Tony Nguyen
Investor from Orlando, Florida

replied over 1 year ago

Rigo, I can share my entire list with you. Send me a PM and I'll send over, thanks.

Yiftach Ilyov
Specialist from Tampa, FL

replied over 1 year ago

@Tony Nguyen could you post it here ? I'd like to see your list as well but I can't pm:/ BP is giving me a lot of troubles lately

Tony Nguyen
Investor from Orlando, Florida

replied over 1 year ago

This is the one we use for Retail Shopping Centers so feel free to revise as needed - enjoy! 

  • Current as-built drawings, plans & specifications
  • Descriptions of buildings, physical aspects and systems
  • Site Plan (with dimensions and identifying tenants and vacant locations
  • Phase I and if applicable Phase II environmental site assessment
  • Property Condition Report
  • Status of ADA compliance (including ADA plans)
  • Warranties (HVAC, roof, insulated glass, etc.)
  • Existing exterior, interior, and aerial photographs of Property
  • Floor plans with tenant location (CADD/PDF files)
  • Any and all Leases and Tenant correspondence
  • Any and all Service Contracts
  • General Ledger for the past 3 years
  • Three year history of delinquency and bad debt
  • Most recent detailed billing statement for all Tenants
  • Tenant ledgers for previous calendar year & YTD
  • Certified Updated Rent Roll and Certified A/R Schedule
  • List of security deposits and prepaid rent
  • Leasing update (pending deals, LOIs, renewals, lease-up projections)
  • Future Tenant improvements and leasing commission obligations
  • Three year history of tenant improvements and leasing commissions
  • Current year detailed operating budget
  • YTD budget vs. actual analysis for current year & 2 prior years
  • Three years of operating statements (revenues & expense) history
  • Capital items/budget forecast (3-year projection)
  • Three year history of capital expenditures
  • Property Tax bill for current year and previous 3 years
  • Current Insurance Coverage
  • Three year history of insurance claims and incidents
  • Tenant’s sales volumes for at least 3 years
  • Three year occupancy history
  • Existing appraisal report(s)
  • Confirmation of Zoning
  • Certificate of occupancy/use permits
  • Status of pending litigation and/or threatened condemnation
  • Most recent title insurance policy
  • Most recent as-built survey
  • CAM Reconciliation for prior 3 years

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