Onsite Multifamily Inspection

Me and my team are on site today at a multifamily project doing our physical due diligence. We’ve got a team handling scoping, plumbing lines, full physical interior and exterior checks, checking the roof, checking the structural integrity of the balconies, things like that, making note of repairs. What the goal is, is to create a budget for year one capital improvements on this project so we know, A, is it going to be a million dollars or $1.2 million renovation budget to cure everything that needs to be cured immediately. You know, if ACs aren’t working or things like that. Then to make the improvements that we need to hit our business plans. It’s a good day. We’re going to actually spend two days out here. It’s 100% unit inspection. We’ll look into every single unit. That’s the physical component. Then, also, we’ve got property management on site doing the financial component. So, lease audits, looking at bad debt, looking at applications that are coming in, and so forth, and spending a lot of time on the … [inaudible 00:01:08] at the assumptions that we have because we’re going to build our underwriting model based on the occupancy going forward. It’s great to come out here and do the physical inspection over a couple of days. Then you get a really good sense of what the bids you’re going to come at to do all those repairs and so you’ve got to successful path forward to execute your pro forma and your business plan. At the end of the day, this is a syndication, so you want to meet or exceed investor expectations and the projections that you set forth. Definitely a huge part here that happens very quickly, usually within the first week of being under contract. You’re completing all the due diligence, so you know where you stand with all the numbers. We’ll have updates to follow on this project.