Due Diligence Period
After making an offer on a commercial property, how long to you typically allow yourself to complete due diligence?
What things in particular do you look at?
Rent Roll
Financial statement (Do you aks for a copy of Sch. E..and verify it with IRS?)
Property Inspection
Quote:
On 2003-11-20 06:08, 64Ford wrote:
After making an offer on a commercial property, how long to you typically allow yourself to complete due diligence?
As long as I can get. Make it two or three periods. make it BUSINESS days instead of days.
What things in particular do you look at?
Absolutely everything. You know all the obvious things. Start there and go further.
Rent Roll
Financial statement (Do you aks for a copy of Sch. E..and verify it with IRS?) I ask for the check stubs. The leases, I interview the tenants, I go there differnet times of the day, On weekends. etc.
Property Inspection
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I agree with the above, but most of the financials can be checked by bank statements, and by the bills. I dont bother the tenants, but I usually am planning on cleaning them out if they dont shape up too. Make sure to check with code enforcement to make sure that there licenses are in good standing and there utility bills are paid, as well as any code violations outstanding as well.
Good Luck,
Kyle
On Property Inspection:
Age of air conditioners
Pest control stickers
Roof
All Sills
Open every window
Ceilings
Meters
Soffets
Go when it is raining
Go when it is hot/cold
Low spots/settling
Go in every room and shut the door ( settling)
Caulking
Mold
Just a few top of mind items
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