Residential Due Diligence

By being able to obtain more detailed information relating to the affairs of the target business, it is hoped that the due diligence exercise will not, only reveal any potential risk areas that require further investigation, but also any potential benefits for the prospective purchaser, arising from the proposed transaction.

Therefore, due diligence will assist in providing for a greater degree of certainty over the expected future performance and earnings of the target investment.

With our Residential Due Diligence service, you will learn and receive a detailed color report outlining the following:

1. Characteristics

a. Tenant lease expirations

b. Current and future rent roll projections

c. Tax, contractor or other open property liens

d. Court cases

2. Physical Investigation

a. Structural examination

b. Individual apartment conditions

c. Building components (boiler/HVAC/etc.)

d. Complete interior/exterior conditions

e. Violations (actual and potential)

f. Hazards (excluding hazardous waste and toxicity studies – optional)

g. Recommended remedies and approximate costs to cure

3. Financial Examination

a. Actual collected rent rolls – Vs. conveyed

b. Actual repair costs analysis

c. Fuel efficiency

4. Conclusion

a. Proposed budget for the next fiscal year (income/expense)

b. Estimated actual net profit

c. Capitalization rates, return rates

d. Risk analysis

Our aim is to let you know what you are purchasing with no surprises. What can you expect to spend in repairs, where will you spend it, obtain a 5 year budget plan and more. This Valuable service will save you the cost of the service many, many times over, and its tax deductible!

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