THE DUE DILIGENCE PROCESS AND SERVICE BUNDLES

Although it is always advisable to conduct a complete analysis of a property prior to acquisition, sometimes it makes better financial sense to break down the due diligence process into cost-effective steps. That's why, at Real Diligence, we've made it easier by offering valuable bundles of services targeting the specific phases of the acquisition process. Real Diligence offers several well-priced suites of services and reports targeted to meet the pre-acquisition, post-acquisition and management/ownership needs of our clients, including

The Due Diligence Process: Pre-Acquisition Due Diligence Bundle

Real estate companies often engage in some initial due diligence prior to executing a purchase and sale agreement. Upon signing this agreement, buyers submit a non-refundable security deposit; this is known as "going hard." Companies also often engage in initial due diligence on several properties at once and then compare the opportunities to arrive at the transactions they want to pursue.

Any due diligence that is conducted prior to "going hard" is inherently risky, as any money spent is lost if the parties decide not to enter into a contract. Nonetheless, some initial financial review may be warranted and may end up saving money in the long term if key information can be identified and strategically utilized.

Real Diligence can perform any of the following initial tasks to assist with pre-acquisition due diligence:

  1. Review and analyze the offering memorandum for integrity and underlying market assumptions
  2. Review and analyze any information the seller is willing to provide (e.g. actual and historical financials, leases, budgets, etc.)
  3. Conduct initial market research to provide or confirm critical market data
  4. Assist with contract preparation and negotiation. Real Diligence can provide guidance prior to contract execution to ensure that the seller provides all necessary documentation and to allow for a sufficient due diligence timeframe.

The Due Diligence Process: Post-Acquisition Due Diligence Bundle

Once the purchase transaction is completed, there is much work to be done to prepare for the management and operation of the property.

Real Diligence can perform many tasks to assist you with this arduous due diligence process, including:

  1. Compile a final rent roll for internal use
  2. Enter all actionable property information into property management software
  3. Prepare initial CAM reconciliations and methodology for each tenant; this can serve as a model for subsequent tenant billing
  4. Provide comprehensive lease abstracts for each tenant, summarizing all critical lease provisions
  5. Bookmark lease documents
  6. Ensure all rent is being paid according to the leases
  7. Ensure CAM invoicing and collection is accurate
  8. Compile a budget based on past history
  9. Ensure adequate lease administration software is in place
  10. Identify and track critical lease dates

The Due Diligence Process: Management / Ownership Bundle

The management and operation of commercial real estate is comprised of countless interacting tasks. Real Diligence can assist in many areas, such as:

  1. Enter/update all actionable property information into property management software
  2. Compile a final rent roll for internal use
  3. Invoice each tenant for base rent
  4. Prepare the CAM bill for each tenant
  5. Track critical lease dates
  6. Prepare/update comprehensive lease abstracts for each tenant, summarizing all critical lease provisions
  7. Oversee collections
  8. Oversee management company
  9. Consult with client to maximize available revenue from the asset