Don't Make this Due Diligence Mistake ...
Don't Start Due Diligence by looking at the Property's Physical Condition ... inspecting the Property should be the LAST STEP in Process
Commercial Property Investment Risk comes in four major “flavors” AND we have found it most productive to look at Each Flavor in a very structured order.
1) Market Risk
Question:
"What Market Factors can affect the performance of this Project? "
Realize that the Market is the #1 risk to the profitability of ANY Project. An expanding market will lift all Properties to good returns. A falling market dooms all projects alike.
We show you exactly how to revisit the Market Analysis you performed when you originally selected this city ( see our "
Quick Start System" ) and take it down to the neighborhood level to wring the Market Risk out of this project.
2) Financial Risk
Question:
"What is the current financial performance of the Property and what performance can I reasonably expect under my management?"
We show you how to get all the information you need to do your analysis promptly ...
- Rent Rolls
- Financial Statements
In Fact ... our Contracts guarantee your Due Diligence period does not even start until you have everything you need.
AND we show you how to crunch the numbers and build and revise your Proforma throughout the Due Diligence process. We even give you the exact software we use in our own investment business when we perform Due Diligence on our Projects ... with complete training on its use !
3) Tenant Risk
Question:
"What is the quality of the current Tenants and the local Tenant Pool and what implications do they have for the performance of this Project?"
Your Tenants are the source of the cash flow that pays your Mortgage and generates your Return on Investment. Detailed analysis of Tenant Quality is vital in any Commercial Property. The fewer the Tenants ... the more important this research becomes.
We show you how to do in-depth Tenant Analysis on any Asset Type ... from Multifamily to Retail/Office/Industrial Property with a Single large Anchor Tenant
4) Physical Risk
Question:
"What is the physical state of this Property and what affect do the upgrade and rehab that is needed to attract quality Tenants have on projected performance?"
Only if the Property has passed the initial three stages of Due Diligence
- the Market is in the right Phase --- check
- the financials suggest it will exceed your Return on Investment hurdles --- check
- the Tenants are of high enough quality --- check
Only now ... do you dive into great depth on the Physical Condition of the buildings.
We show you a way to get a physical inspection of every square inch of the Property, with detailed estimates of the cost of repairs and ugrades ... for FREE ... no money out of your pocket.
Perhaps the biggest challenge in Commercial Property Due Diligence is the sheer volume of information needed to answer these questions as accurately as possible … all of which must be gathered and analyzed in the 30 days before your Inspection Period expires and your Earnest Money goes Hard.
That's why we give you our 373 Item Master Due Diligence Checklist - actually TWO of them ... one for Multifamily and one for General Commercial Property - AND we continue the training that started in our
Quick Start System on how to Use Your TEAM.
Nowhere is the TEAM nature of Commercial Real Estate Investing more evident than in Due Diligence. Your TEAM of local experts gives you the speed, accuracy and quality analysis that makes everything possible in the 30 days ahead.
We show you how to delegate sections of the Checklist Tasks to all the following members of your team.
- Property Manager
- Real Estate Broker
- Attorney
- Mortgage Broker
- Insurance Broker
- Field Partner
We Know You'll Be More Than Satisfied! WE GUARANTEE IT!