Multifamily Investor’s Due Diligence is Much More Than Meeting Lender Requirements

A successful multifamily investment is predicated on effective comprehensive due diligence. Due diligence based on lenders requirements is the start not the end. The lender will likely require:

• A property condition report (PCR),
• A Phase I environmental report,
• A title search,
• A UCC Lien search,
• An Operating Agreement,
• EIN Certification,
• A Management Agreement,
• Resumes for contractors,
• Bios for the principals, and
• An Appraisal

The cost of preparing these items can range from as little as $25,000 to multiples of this amount for a given property. (more…)