Due Diligence Services
Due Diligence Services
KMC Lease Administration Due Diligence services ensures that you get what you are paying for by carefully verifying the terms of the contracts, the conditions stated and the performance of the real estate.
Due Diligence Prices and Turn Around Time
Charges and turn around time for a Due Dilligence Project will vary based on the size of the property portfolio and the number of documents that need to be reviewed.
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Due Diligence Process
Step 1 - Contacting KMC
Fill out the inquiry form on KMC's website and a sales representative will be contact you within 24 hours of the query.
Step 2 - Analyzing the Project
Consultation and assessment of project details with VP of Sales and the Lease Administration Manager and the execution by client of a service agreement. KMC will customize its services to fit your needs with regards to transmitting the documents; data management and report format and content.
Step 3 - Submission of Documents
Client to furnish the necessary documents listed on the checklist below.
Step 4 - Receipt of Documents by KMC
Documents can be sent to KMC through the following methods:
- The documents can be e-mailed directly to KMC.
- The documents can be saved on to a CD and sent to KMC via a courier.
- The documents can be uploaded unto KMC's website with a secure password and access ID.
- The documents can be transmitted via FTP.
Step 4 - Organization of Documents
Checklist documents will be reviewed for missing pages and ancillary documents that is necessary for the audit process; then the documents are organized and segregated based on the categories enumerated on the said checklist.
Step 5 - Audit of Documents
KMC will audit each of the documents (provided by the client) for any issues; liens and law suits related to the property (past and/or existing).
Step 6 - Reporting
Based on the investigation; KMC will submit a summarized report of its findings to the client; highlighting any issues that requires the client's attention.
Due Diligence Checklist
1. Contracts, Licenses, and Policies:
- All leases (full copy) including all associated addendums or riders
- All existing loan documents including: notes, deeds of trust, closing statements, title policy, rate riders, and contact names and numbers.
- Deed
- Any service or advertising contracts including: billboard agreements, cable television agreements, commission agreements, extermination agreements, maintenance agreements, management agreements, pay telephone agreements, union agreements, and vending agreements - any instrument or contract to be assumed by the purchaser.
- Insurance policy including all riders, risk assessments, and disclosure affidavit for carrier.
- Business license
2. Financial:
- Bank statements showing deposits for the last 12 months
- Annual profit and loss statements (P&Ls) for past 3 years minimum or 5 years (preferred)
- At least one year of monthly P&Ls or 2 years of P&Ls (preferred)
- Balance sheet for past 3 years
- Rent Roll including term, deposit, and payment history.
- Tax returns for past 3 years
- Utility bills for last 2 years of monthly statements including: water, sewer, electric - or recap report from provider showing usage and costs.
3. Other
- Copies of all recent appraisals, engineering reports, and environmental reports.
- Payroll register list of employees including: name, position, wage rate, years of service, and entitled benefits.
- Inventory of furniture, fixtures, equipment, and supplies.
- Fire system inspection reports.
- Litigation history including details of any past or pending litigation - if none exist an affidavit from owner.
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