Due Diligence, Industry secrets, how to get the best DD info outside of the typical items the owner sends, thanks!
About to enter DD, on my second deal so it feels much easier than the first time. Any really good tips for finding out the best things about a potential acquisition during DD? I'm talking about the real savvy stuff that isn't in the DD handbook and what not. It's a medical property if that helps. Would love to hear some industry tips/secrets. Thanks!
[{"id": "i2ba19f", "text": "Befriend the building engineers.", "replies": [{"id": "i2bwyz7", "text": "This is the best tip on here they truly know the lay of the land if you can keep them on they will save you a lot of money as long as they are good at their job.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i2baqs5", "text": "Ask for the general ledger and go from there. You will find hidden phone and internet lines hooked to systems that may not be in the typical vendor contracts. You will also get an idea of general problems that may be costing more than they should.", "replies": [], "depth": 1}, {"id": "i2bffhj", "text": "Define medical . . . medical office? Biotech? Surgery center?", "replies": [{"id": "i2bfx39", "text": "Medical Office", "replies": [{"id": "i2brdos", "text": "what is the general size?", "replies": [], "depth": 3}, {"id": "i2bxdg3", "text": "If you have specific questions on MOBs dm me we manage and own several large properties and know this space very well.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i2blbd6", "text": "Can't just conduct DD via pitchbook &amp; phone calls/emails.\n\nYou must do a thorough tour of property and market as well as speak to other brokers/PMs.\n\nUse your eyes and ears more than your mouth (unless you are asking questions or eliciting info).", "replies": [], "depth": 1}, {"id": "i2bpkor", "text": "Tour the property and ask the Tenants questions. They can often reveal a lot of problems with the property. Make sure you are getting your own 3rd party reports and not just relying on what the Seller gives you. At least get a PCA, Phase  I &amp; ALTA survey.", "replies": [{"id": "i2bsr0y", "text": "This is the best answer. Talking to the tenants can be an invaluable source of information.", "replies": [], "depth": 2}, {"id": "i2btghr", "text": "for the love of god when they do the PCA and phase I site visit (or really any other site visits) go to them at least for a partial time.  I'm always amazed when folks will pay thousands for reports but won't spend 30 minutes of time on site where issues can be pointed out and explained right in front of you.", "replies": [{"id": "i2bx6vc", "text": "I wish I could do this, but I am often acquiring or lending on multiple properties across the country at once.", "replies": [], "depth": 3}], "depth": 2}, {"id": "i2bwomr", "text": "What are the potential problems that a survey can discover and how come they aren\u2019t common to order in residential?", "replies": [{"id": "i2c00se", "text": "Your attorney needs to review title and survey. Residential has a lot fewer restrictions on buildings,  access etc. \n\nYou limit your exit if you just blindly accept exceptions", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i2c04t0", "text": "Review and understand the leases. Know what the TI was and any restrictions ROFR etc.", "replies": [], "depth": 1}, {"id": "i2c9olg", "text": "Speak with the existing Tenants.  You will be amazed how much information you can obtain.  Ensure them what's said is confidential.  I have backed out of two contracts due to Tenant information.\n\nAlso, inspect the roof and all mechanical systems.  Look for any deferred maintenance.  Be on-site for all inspections, etc.", "replies": [], "depth": 1}, {"id": "i2dbmdx", "text": "Be on-site for due diligence. Repeating what other's have said because it can't be emphasized enough.\n\nAlso, getting the PCA is OK, but doing a full due diligence, with vendors inspecting the property, top to bottom is key.", "replies": [], "depth": 1}]