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Investors: as you know, a detailed analysis of a Commercial Real Estate (CRE) business investment is absolutely necessary to ensure that your active or passive investment is safe and profitable. Use the following Checklist and Contact Us with questions and suggestions.
We also do this for you at much less than your time, staff and omission costs,
finding great, active or passive investments ... or ... buying your next, lucrative asset.
Team Evaluation ↑top
Market Analysis
- Demographics - match property tenant expectations
- Age - match specialty housing (55+, assisted living, nursing home) and medical facilities:
- Income per household - median, growth trends:
- Employment types - top 3-5:
- Education level - median, match:
- Growth Trends
- Stats:
- Area Rankings Versus Near and Similar:
- Employment Levels
- New Job Prospects:
- Potential Shutdowns:
- Inhibitors - thoroughfare access, transportation, jurisdictions' laws and possible changes (such as sanctuary):
Property Assessment
As the main investment asset or part of a business investment / purchase. ↑top
- Corporate Entity(s) - name, incorporation address, representative(s), officers:
- Location:
- Class - now and after Value Adds:
- Age of Property:
- General Condition - new, recent, aging, distressed:
- Party Facilities:
- Laundry - Machines, Supply Machine:
- Vending Machine - Food, Drinks:
- Infrastructure
- Water Supply - pressure test:
- Sewer Connections - scope:
- Internal Pipes - no leaks, failings:
- Unit Contents
- Appliances - clean, up-to-date, matching:
- Furniture - clean, up-to-date, matching:
- Energy Efficiency
- Doors - air tight, secure:
- Windows - air tight when closed, secure, openable per code:
- Window Coverings - generally blinds:
- Appliances:
- Ceilings, Walls - well-insulated:
- ADA Compliance
- Parking Places - number, access:
- Ramps:
- Elevators:
- Signage:
- General Access without barriers:
- Technology
- Security:
- Communications:
- Internet - cable, WiFi:
- Water Leak Detection:
- Fire Detection:
- Occupancy:
- Rent Collection:
- Accounting - period, how recent:
- Cost Segregation - annually:
- See more in Underwriting
- Aesthetics
- Paint - fresh, clean, similar to neighborhood:
- Trees
- Sturdy, healthy, pruned:
- Not threatening roofs, electrical wires:
- Not threatening foundations, pavement, fences:
- Plants - healthy, pruned:
- Lawns - consistent:
- Concrete - clean, minimal cracking / breaks / expansions, sealed:
- Value Add Estimates
- Overall Cost:
- Contractor Bid(s):
- Stages - if more than Timeline:
- Deferred Maintenance
- Not listed above:
- Completion costs:
- Recent Costs:
- Additional amenity opportunities - daycare, storage, better parking facilities, parking restrictions, solar panels on parking covers, ...:
- Contractual Obligations not disclosed above:
Rent Evaluation ↑top
- Current Rent Levels:
- Growth Potential:
- Growth Increase in Profit, based on NOI:
- Historical Growth Rates:
- Rent cap laws or regulations - active or coming:
Financial ↑top
- Financials - audited:
- Loan Evaluation
- Owner Financing Possibility:
- Term Sheet:
- Interest Rates
- Reasonable:
- Pay-down Costs:
- Interest-Only Duration:
- Floating Rate Ceilings - ranges, insurance:
- Down Payment Reasonableness of Loan to Value and/or Cost (LTV / LTC):
- Closing Time - time to raise capital, but not too long, beware of quick-close lenders:
- Extension Possibilities to avoid Gap Loans:
- Pre-payment Penalties:
- Profit Analysis
- Gross Income:
- Operating Expenses:
- Net Operating Income (NOI):
- Loan Payment and Interest:
- Net Profit:
- Cap Rate - computed, normal:
- Cash on Cash (CoC):
- Internal Rate of Return (IRR):
- Return on Investment (ROI):
- Equity Multiple:
- Present Worth Value of all Income:
SEC Compliance ↑top
- Private Placement Memo (PPM) - disclosures, threats, business plan:
- Subscriber Questionnaire
- Full Identification - name, company, EIN / SSAN, physical and mailing addresses, additional contacts:
- Accreditation - Statement if 506(b), or Proof if other Examptions:
- Subscriber Agreement -
- Representations:
- Warranties:
- Transfers:
- Operating Agreement
- Formation:
- Partner Duties:
- Capital Contributions:
- Voting Rights:
- Share Type:
- Manager Compensations:
- Acquisition Fees:
- Distribution Methods:
- Investor Split after Paid Back:
- Dissolution - criteria, options:
- Advertising:
- Fundraiser Agreements:
Pitch Materials ↑top
- Electronic storage
- Website:
- Investor portal:
- Data Room:
- Webinar Replay:
- Documents - in addition to SEC Compliance Documents
- Overview:
- Executive Summary:
- Pro Forma - 1 page:
- Timeline
- Relevant Information:
- Value:
- Equity Requirements:
- Loan Requirements:
- Possible Refinances and criteria:
- Possible Early Sales and criteria:
- Use of Funds:
- Quality of Materials
- Matches Offering Memo (OM) or Broker Listing:
- Truthfulness:
- Compelling:
- Reasonable Length - 20 pages unless required and necessary additional details:
- Includes necessary sections to cover above:
- Fundraising Presentations
- By Management Team:
- Replay available:
- Decent quality:
- Other investors shown:
- Clear information:
- Questions answered:
- Deeper information available, such as a Data Room:
- Underwriting details
- Assumptions and controlling parameters:
- Yr 1, monthly; 2-3, quarterly, 4-end, annual:
- Rent Rolls with names, lease starts and ends:
- Price:
- Price per unit:
- The many income sources:
- All expenses:
- Distributions:
- Net computations:
- Sensitivity to occupancy, growth rates, milestone changes, floating rate loan adjustments:
Tag Line: ↑top
"Prosper Systems Finances, Sells or Develops Businesses for us$10M+, Projects for $100M+,
and takes great care of Referrers."
Disclaimer: ↑top
Neither Prosper Systems (PS), nor its Founder, Kenton H Johnson, are licensed Real Estate or Lending Brokers, Securities Dealers or Investment Advisers. However, PS has an Attorney on its Team, as well as works closely, engages and will have other Licensed individuals or firms on its Team. PS makes no warranties or representations as to the quality of an opportunity, the integrity of the Buyer, Owner or associated Collaborators, or the value of a given transaction. PS is acting only as Collaborator with Buyers, Owners or their Collaborators. All due diligence is the responsibility of Investors, Buyers, Owners and their Collaborators.
Contact Info ↑top
PROSPER SYSTEMS (.biz)
• Kenton H Johnson (.com), Founder
• PS Introduction
• Resume
• Brief (for Referring & Participation)
• CRE Due Diligence (Checklist)
• Inexpensive Consulting (includes one vetted investor per month retained)
• Group (Join)
• Development & Finance
• Sales
• Project Services
• LinkedIn Profile • LinkedIn Company Page
• Lucrative Referrals Request (to 20%)
• Rocket Your Startup 2.0™
• Finance Options (Debt/Equity)
Schedule a Call or Mtg (9am - 7pm USA Mtn Time, by Video Conference, Your System or In Person)
Copyright © 2024-2025, Prosper Systems, Denver CO USA. All rights reserved. Latest update, 1/10/2025, KHJ
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