Due Diligence
Most real estate due diligence companies send engineers and environmental consultants to look at the roof, the systems and the soil. We are an apartment operator, so we check what they do not: whether the rent roll, the leases and the T12 agree, and whether the property runs the way the offering says it does.
Units
Monthly owner report
The problem
A property condition report tells you what the building needs. It does not tell you that some leases are below what the rent roll shows, that concessions are buried in other income, or that the payroll line assumes a staff the property does not have. Those gaps are found in the documents, and they are found by people who read rent rolls and ledgers every week.
What we do
We reconcile the rent roll unit by unit against the leases and the ledger: rent, term, deposits, concessions, charges and balances. Every figure is traced to the page of the document it came from, so nothing is taken on faith. Our platform, AssetVue, reads the leases and flags where they and the rent roll disagree.
Every lease, not a sample: missing signatures, expired terms, side agreements, fees outside the stated rent and anything a new owner inherits. Our guide to the multifamily lease audit lists what we check.
We read the trailing twelve months the way an operator would: which income is recurring, which expenses are missing or one-time, and what it will really cost to run the building after closing.
Staffing, leasing process, vendor contracts, maintenance backlog and reporting. We note what we would change on day one and what it would take to run the property well.
We hold the seller's or broker's pro forma up against what the documents show and what the submarket supports, and say plainly where we disagree. For a full model, our multifamily financial modeling team builds one from the same data.
How it works
The offering memorandum, rent roll, leases, T12 and anything else the seller has provided. A property and a unit count are enough to start a conversation.
We agree what you need checked, by when, and what the seller still owes you, so the work fits your due diligence period.
Rent roll against leases against ledgers, then the T12 and the contracts. We record what cannot be verified as clearly as what can.
A written summary of what we found, ranked by what it means for price and operations, with the source document for each item.
We go through the findings on a call, answer questions from your partners or lender, and help you decide what to ask the seller for.
The result
Financial Modeling
The most in-depth financial modeling for multifamily: underwriting, pro formas and renovation scenarios built on real operating data.
Learn moreMultifamily Consulting
Advice from the people who run apartments daily: due diligence, NOI strategy, value-add plans and operations reviews for owners and investors.
Learn moreAsset Management
An owner's representative for apartment buildings someone else manages: monthly reviews of the numbers, budget and NOI checks, and hold or sell analysis.
Learn moreSee it for yourself
Under contract on an apartment deal?
Send us the documents. We will tell you what they show and what they do not.
Questions
Insights
Ownership and InvestingThe seller's numbers are a story. Due diligence is how you find out which parts are true. A practical checklist for syndicators and first-time buyers of 5+ unit buildings.
Ownership and InvestingHow to audit every lease in an apartment deal against the rent roll and the ledger, what usually turns up, and how to use it before closing.
Ownership and InvestingA seller's rent roll is a snapshot that can flatter the building. Here is how to read each column and the red flags to check before you buy an apartment property.
