Due Diligence Services
Financial documentation is the most important component of any due diligence investigation.
At Multi-Family Innovations, we never rely upon a cursory examination of the most basic forms. We access all historical financial and compliance reporting data for the target property. We will review the OM (Offering memorandum) that was provided by the selling broker or seller and compare it with the information that we receive during the diligence period.
We will request the following from the seller/selling broker-
1. Utility Bills-Water & Sewer bills, Gas and Electric Bills (Last 3 Years)
2. Maintenance expenses (Last 3 Years)
3. Property Tax Bills (Last 3 Years)
4. Tax Returns (Last 3 Years)
5. Bank Statements (Last 3 Years)
6. Profit & Loss statement (Last 3 Years)
7. Current Certified Rent Roll.
8. List of all Delinquent tenants.
9. List of any vacant mobile homes.
10. List of any and all park owned homes.
11. Copy current insurance policy and cost.
12. Contact local government to confirm that there are not violations or pending lawsuits against the property.
Someone from our office will visit the property to inspect and take pictures of vacant homes, vacant lots, electric pedestals and the roads.
We will Coordinate the following-
1. Coordinate a survey of the subject property.
2.. Coordinate a Phase 1 environmental study.
3. Coordinate an inspection of the infrastructure (Water & Sewer lines).
Our goal and commitment to our clients-
Multifamily Innovations will not only identify Red Flags within the deal but we will also identify
Green Flags that signal where additional revenue and upside value may exist for our client. Once this process is completed, Multifamily Innovations will help our clients contemplate the deal structure to determine if the deal is worth the sales price based on actual occupancy, income and expenses.
We have been in the industry since 2003 and we have seen several deals go south for buyers because they bought their park based on a super aggressive cap rate and or based on projections. Our Job is to paint you a realistic picture of what the deal looks like based actual information and not based on projections.
We will put together our own OM that is based on the actual facts about the property and give you our insight into the deal.
Multifamily Innovations is not liable or make any guarantees in concerns to the outcome of any due diligence.