Investment Property Guide

Analyze Everything

Study any and all tenant leases, insurance and title policies carefully, read every word, take notes and don’t be afraid to ask questions.

Here is a short list of all items to study during due diligence:

-                     Financial records: Including three to five years of annual profit and loss statements, three years of balance sheets, three years of tax returns.

-                     Insurance records: Including all insurance policies, riders and risk assessments.

-                     Existing loan documents: Including any notes, deeds of trust, closing statements, title policies, rate riders, contact names and numbers.

-                     Leases: Entire copies of all leases plus any addendum or riders.

-                     Service/advertising contracts: Including but not limited to trash, maintenance, management, vending, pay telephone, etc.

-                     Payroll information (if applicable):

-                     Utility bills: Including water, sewer, gas, electric, etc. dating back at least two years.

-                     Litigation history: Including past and present litigation.

-                     Engineering inspection:

-                     Property survey:

-                     Title search and policy:

-                     Property tax information: