Blue Bell, PA · Member since 2020 · 3 posts · 0 votes
I'm considering starting a business (as a sole proprietor) focusing on due diligence for commercial property transactions and I'd appreciate your input on how I should best market myself. I would be completing Phase I Environmental Site Assessments as required by the lenders, and also mold, lead, radon, and asbestos testing as other service options. I'm curious how you go about finding a due diligence consultant. Does the lender typically have a consultant already contracted with them or are they open to the buyer/seller providing their own? Is conflict of interest a big concern? In your experience, has low cost been a priority over quality/content of the Phase I? Any thoughts on who I should be marketing to? My initial thoughts are small commercial lenders (credit unions), commercial realtors, real estate attorneys, commercial developers, and civil engineering firms. Anyone else I'm forgetting? Thank you very much for any input you could provide on your experience w/ due diligence.
Real Estate Broker · Los Angeles, CA · Member since 2020 · 46 posts · 18 votes
5y
@Nick Roy Lenders don’t typically have someone contracted on an exclusive basis, maybe a preferred vendor relationship.
The way to avoid conflict of interest is... don’t work for 2 people on opposing sides and be honest! A phase 1 should be pretty uniform vendor to vendor, it’s just a history of the property. You have the right idea of how to market.
As a broker, I encourage sellers to get a phase 1 before we go to market - that way we know ahead of time if there is any remediation and can either fix it ahead of time or price in the work. You can help brokers and sellers complete smooth transactions by making sure they avoid surprises.