Due Diligence & Risk Management

Before finalizing a purchase, conduct extensive due diligence to minimize risk.

Critical Due Diligence Steps

• Financial Review: Examine rent rolls, tax returns, and operating expenses.
• Property Inspection: Assess structural integrity, plumbing, and HVAC systems.
• Environmental & Zoning Reports: Ensure compliance with city regulations.
• Market Comparisons: Evaluate comparable property sales in the area.
• Tenant Lease Analysis: Review lease terms, rent escalations, and vacancy history.

Common Risks & How to Mitigate Them

• Vacancy Risk: Diversify tenant mix and target high-demand locations.
• Market Fluctuations: Invest in growth areas and adjust lease structures accordingly.
• Unexpected Expenses: Budget for repairs and operational costs.

Thorough due diligence helps prevent costly mistakes and ensures a strong investment.