Following an executed contract to purchase, we have up to 30 days to conduct all of our due diligence and decide if we will move forward with the closing.
Similar to buying a primary residence, this includes a physical inspection. But, walking hundreds of units can take several days and requires a team taking notes on what they observe and compiling a list of repairs.
But unlike residential, commercial due diligence dives into a full legal and financial review as well. It’s common to bring in some 3rd-party support for this. Property managers, general contractors and trades like electrical and plumbing come in handy to provide reports on the asset. Below are some of the reports that allow a full review prior to close.
Internal Property Condition (PCA)
Property Condition Assessment
Environmental Site Assessment
Financial Audit Report
Market Condition Report
Unit Walk Report