What to Look For During Due Diligence Phase

We had our property management company that works well with us on due diligence and we've had people have different opinions, but we were firm opinion. You needed to look at every unit in the due diligence phase. We had a discussion the other week, someone felt that you only needed to do about 20% to get a feel for the property, which is not the case. So that would have burned us on one of our deals, we would be an underwater right now, which we didn't do it. Water and utility conservation, running toilets, a few residents identified which would probably be residents who would want to keep close tabs on and decide whether they renew with us. 

Oklahoma is one of those great states where you can give a resident non-renewal, we just have to get a feel and then also listen to a lot of residents about issues, which may not have been forthcoming. It is a and chiller system, so there were a handful of residents who let us know that they struggling with hot water and do we have anything in our budget to take care of mechanicals, make sure they get the hot water, things like that. It was interesting due diligence in terms of the physical, there were no major surprises, but there was a lot of feedback from residents as to what would make their lives better and make the community better. 

One of the biggest things that it seemed to come out was just confirming and finding more opportunities to increase income through different measures. Whether it be utility or amenity additions, things of that nature. For example pets, I don't think that it was alarming the number of pets that were there versus what kind of no other income was shown during our financial due diligence portion, so we feel that we'll be able to enforce those things and actually increase or other income significantly as well.

We would love to find out more about your investment goals. You can simply text us using the word ”Trident” to 38470
or schedule a call with us:
https://calendly.com/tridentmultifamily