A Systems Approach to Commercial Property Due Diligence (A Guide for Investors)

systems

A systems approach to thorough due diligence will give you all the information you need to make an informed decision and, most importantly, give you peace of mind. Commercial property risk comes in four distinct areas. Each of these risks must be specifically identified and mitigated. We include all activities associated with the closing of the purchase, including those outside the Market, Financial, Tenant and Physical Due Diligence process. No single person can be expected to complete the entire information search on their own. No one can remember to go through a full discovery process, there is just too much information to cover. Due diligence requires that you use a proven system to get the results you need. Clinicians invest in the same way they approach any presenting set of risk symptoms: they break down a symptom (risk), look for the smallest components, and follow a proven system of discovery (due diligence).

A system checklist provides a step-by-step search for information you’ll need for both apartments and medical office building or healthcare (MOB) commercial properties. A checklist will organize your actions and make sure you complete your search. Don’t start your search without a complete list!

The letter of intent can give the seller time to gather the information they need. The Seller may also deny your request for certain documents or delay their availability. When you submit a request for information in your Letter of Intent (LOI), you can negotiate your information requirements in advance. The sooner you start, the sooner you will have the information and begin to implement a systems discovery approach.