Keys to a successful purchase and transition on multifamily

[Karen Cupp]

I am under contract to purchase my first multifamily. We are in the due diligence phase of the process.  What are some keys to this transition both operationally and tenent wise that I should include in agreement for a successful transition?  I am aware of things like making sure I get all of the deposits and keys but are there other key questions I should pose to the owner?

[James Kojo]

 Here is my DD checklist for when I take over a property.
To be honest, I almost never get all of these, but I ask regardless (and put it in the purchase agreement!)
A word of warning: this might overwhelm, and potentially scare-off an unsophisticated seller, but I buy 100+ unit properties, and most sellers are used to this kind of stuff.
I presented this list once when I was buying a quad from a small-time seller. You can imagine the response.
I hope this helps!


James Kojo

[] Previous 24 monthly operating statements
[] Current rent-roll
[] Tenant Ledgers for past 12 months.
[] Copies of all resident lease agreements and applications
[] 2 most recent months of all utility bills for common area and currently vacant units.
[] Copies of all existing service contracts and agreements.
[] construction and other warranties still in effect;
[] Insurance loss runs for the previous 5 years
[] Most recent survey of the property
[] Any environmental reports and description of any environmental remediation.
[] all licenses and permits or certificates of occupancy or other documents indicating compliance with any applicable governmental requirements.
[] As-built building plans
[] Copy of each floor plan.
[] Copy of property brochure.
[] List of all property phone numbers (including general office line, fax, modem, internet connection, maintenance, security, etc.)
[] List of all websites, domain names, social media accounts, or any other means of advertising or marketing associated with the property in whole or in part, whether transferrable or not.
[] List of all trade names or intellectual property associated with the Property.
[] Staff listing