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Due Diligence

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

     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

     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)

      Photos courtesy of Humphreys & Partners Architects
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