Due diligence is more than "checking the box" with respect to questions and answers. It is a method to uncover the details that others might miss. It is an attention to not only the real estate itself but the macro/micro economics affecting the real estate. In order to become a value-add partner we believe in constantly researching the areas around the project in question in order to learn about the changing dynamics that might affect the overall returns. J Alexander believes that due diligence is a "constant" process that does not end until a successful exit.
| Operations |
- Rent roll to lease audit comparisons
- Market verification studies
- Occupancy audit
- Verification of all deposits by unit
- Audit all deposits
- Review historical operating statements
- Inventory FF&E
- Review existing service contracts
- Verify Utility, tax and insurance status & contracts
- P/L expense audit
- Area crime reports
- Property crime reports
- Interview existing property management
- Review all marketing materials
- Interview various tenants
- Develop tenant profile
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| Property |
- Replacement/rehabilitation history
Review recurring & non-recurring maintenance Audit list of property “to be transferred” Inspection of each unit Deferred maintenance Occupancy Inspect entire property to identify maintenance issues Roof HVAC Parking lot Pool Leasing office Landscaping Other common areas Review ADA Code Compliance Review City Code Compliance
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| 3rd Party Reports |
- Property Condition Report
- Phase I Environmental Report
- Soil Report
- Structural Inspection Report
- Drainage Inspection
- Termite & Mold Inspection Report
- Appraisals
- Title Search
- Title Insurance
- Interview 3rd party management groups (if necessary)
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