Market Analysis | Competitive Analysis | Pro Forma Assumptions |
| Employment Drivers | Unit Availability Mix u0026amp; Size | Actual Performance Analysis |
| Employment Trends | Tenant Profile | Multiple Exit Strategies |
| Demographics u0026amp; Growth | Proximity Analysis | Conservative Factual Basis |
| Crime Statistics | Vintage u0026amp; Style | Under-performing Opportunity |
| Housing Trends | Onsite Visits | Current Market Value |
| Unit Absorption Trends | Amenities | |
| Housing Rental Market Rates |
Due Diligence
Significant effort towards selecting projects with growth demographics and ability to purchase near or below replacement cost. All screening efforts made based on established investment objectives with conservative forward-looking revenue and cost estimates for risk mitigation purposes. Ensure that each project is negotiated on the best possible terms and development of multiple exit strategies.
CEP will consistently employ strict procedures to mitigate risk and achieve maximize returns. Our exhaustive investment selection and due diligence process is designed to identify current issues, as well as the potential future market conditions including market rents and volume. The approach serves to minimize the risks associated with acquiring real estate, while maximizing returns for our private partners.
Financial Due Diligence
Perform sufficient review of all financial records including historical and forecast statements. All records will be inspected with professional skepticism, in an attempt to validate accuracy of provided statements.
This includes extensive review of maintenance record and inspection of rent roll confirming revenues. To work toward meeting our mission, detailed analysis of current leases and background checks will be performed. Additional crime activity reports and market rent surveys will also be secured.
Physical Due Diligence
Title reports, surveys and environmental reports will be secured along with data related with pending code compliance issues. In order to determine a baseline for restoration plans, each unit will require a physical walkthrough to identify status and ability to estimate costs of required upgrades. Detailed onsite review of nearby competition, close proximity of amenities and local employment rate analysis performed.
