1. Property Title and Lease Documents:
Ensure that the documents are up-to-date and legally binding, confirming ownership of the property.
2. Building Permits and Inspection Records:
Review any relevant permits issued for construction projects and inspect the building to ensure it meets all applicable codes and regulations.
3. Environmental Reports:
Inspect for potential contamination or other environmental issues that could affect the value of the property or its ability to be used for its intended purpose.
Examine financial documents such as rent rolls, operating statements, cash flow projections, etc., to assess the financial stability of the investment.
Conduct extensive research into existing tenants including credit checks, occupancy rates, and any legal or financial issues that could have an impact on the property.
6. Market Analysis:
Analyze market data such as vacancy rates and rental prices to assess the potential income of the investment.
7. Legal Issues:
Investigate all current and past lawsuits related to the property, as well as any other legal matters of which you should be aware before investing.
8. Property Insurance:
Review existing insurance policies for coverage levels, premiums, and any exclusions that could leave you open to a potential loss due to unforeseen circumstances.
Prepare a closing checklist with detailed instructions regarding the transfer of ownership forms, title search results, mortgage documents, etc., so that the deal is closed correctly and on time.