For years, the acquisition of a new apartment building has been a major undertaking. Not anymore
First, you have to leverage a massive amount of resources to collect the necessary data. And you have to process that data quickly to draw conclusions about the asset if you want to continue moving forward with that purchase.
The challenge is that you only have a few days — or sometimes just hours — to conduct all of those inspections. And that requires coordinating inspections of hundreds, sometimes thousands of units.
Then you have a limited amount of time to put that inspection information into a useful format to draw conclusions about the state of the asset. That usually involves getting it all into an Excel spreadsheet and creating a good-looking report. But just putting the data into a spreadsheet isn’t always enough to draw the kind of operational conclusions that you need.
It’s an extremely difficult, chaotic process that would really benefit from being put into a digital environment.
Leonardo247’s Due Diligence Checklist in a Digital Environment
Leonardo247’s due diligence checklist is a real solution for conducting an efficient and thorough due diligence process.
First of all, you complete all of your inspections through mobile digital forms. And those work in a disconnected environment, so if you lose internet connection, you don’t lose the data. You just sync up when you hit the wireless connection again.
All of Leonardo247’s due diligence forms work wherever you are on the property. You can take photos or add attachments that you can’t capture with pen and paper.
Rent Roll Comparisons and Data Formatting
We also have a system that allows you to upload any kind of rent roll. It automatically normalizes that information so that you can compare rent roll data easily. We can also present the rent roll data in a searchable format so you can do at-lease file audits. In other words, you can check what is in the digital rent roll with what you find in the lease file very quickly and very easily.
You can export data at any time as you do all of these inspections. More importantly, you can change how things are phrased, scrub the data again, and re-upload it to produce a final report that you can use.
We can also format that data so you can use it to look at a potential rent lift for a value-added acquisition. This makes it possible to answer questions like:
- What is your rent lift going to be over time?
- What are your average leases in place?
- How do your demographics break down?
- What sort of units are the demographics brokering?
There are lots of ways to slice and dice due diligence information. Leonardo247 does that automatically, immediately after you’ve finished the inspections and uploaded the results. It’s a game-changer.
Now you can conduct a due diligence inspection faster than ever and with fewer people. You can also get real-time statistics on how people are doing, the number of units they’ve completed, and the estimated time until completion. You can know if you’re on track to finish everything you need to complete, and you can produce the charts, breakdowns, and analysis automatically as soon as the due diligence is done.
Follow-On Tasks Generated Directly From Your Due Diligence Checklist
Since you’re using Leonardo247, any follow-on tasks that arise from the result of the inspection beyond due diligence become part of an action plan. Let’s say you find a roof that needs to be repaired, or a pool that needs a new pool gate. Those findings can become tasks to complete in Leonardo247.
Now, when you take over the property, the operators that you put in place have tasks for all of the inspection findings in front of them already. And you can track that all of those follow-on processes have been completed.
Finally, sometimes you need to submit due diligence findings and completed tasks to lenders. With Leonardo247, it’s very easy to demonstrate that all that work has been done.