Our due diligence uncovers everything you need to know about your investment.
We have seasoned inspectors, lawyers and engineers for maximum reliability and efficiency.
We finish our due diligence on time so that your investment is not delayed.
Are You Investing in a New Property?
We like to make sure that everything is fit and fine when we buy something. We spend hours researching the product, reading reviews, making comparisons and evaluating price so that we are sure of our purchase.
Buying a new property is a big investment and it's a no-brainer that you need to find out all you can about the purchase. The need is utmost for commercial properties, where you have to make sure everything is okay so that your investment doesn't go down the drain!
For this reason, seasoned investors always go for a pre-purchase due diligence to optimize their investments and make the most of the evolving real estate market. Due diligence before your purchase can uncover crucial facts so that you don't have to encounter any post-purchase surprises!
New York Engineers offer professional pre-purchase due diligence for commercial and residential properties. Our due diligence can unearth key information that you might miss out while evaluating the value of your property or portfolio. Such hidden details can have a strong impact on the profitability of your acquisition, making or breaking your deal!
For instance, you might find out that the building has arrears in tax after purchasing which you now need to settle. Needless to say, you could have prevented this unpleasant surprise if you had gone for a pre-purchase due diligence.
Our expert engineers and inspectors offer reliable pre-purchase due diligence which gives you full information about the property you are about to purchase. Based on our due diligence, you can make an informed decision and determine whether the purchase will be profitable for you.
New York Engineers Due Diligence Process
New York Engineers performs a comprehensive due diligence so that you know exactly what you are buying. We ensure that all facts and numbers are uncovered and you get a good idea of what your property entails. Whether residential or commercial, we carry out physical inspections, review titles and documents, make environmental assessments, study zoning requirements and more to leave no stones unturned.
Our due diligence process depends begins by understanding your purchasing objectives. Your investment goals for acquiring the property will create the foundation for our due diligence. For example, if you want to purchase a rental apartment, then we will verify the existing tenant leases and rental payment history to determine the feasibility of your investment.
On the other hand, if you are going for a commercial property for business, then we will verify if its suitable for the intended use.
The due diligence process varies from project to project, but there are some common aspects and items that are assessed. Here's a brief look at some of the items we evaluate and the process we adopt.
We employ experienced real estate attorneys to review, evaluate and verify all legal documents. Our team evaluates a number of documents including titles, surveys, zoning regulations, tax certificates, operating statements, seller's financial records and more. We also verify other documents to ensure everything is in order and you don't face any trouble later on.
Some documents we check include-
We will determine the documents that need to be verified and evaluate them accurately to uncover crucial details that can impact your investment.
A title review is a must to determine your rights and what you are purchasing, and to find out the rights of others. The title refers to the transferrable rights of the seller and it is necessary to check whether he has the required rights. The title review also uncovers any claims against the property through a title search.
The title review provides important information such as past and current ownership, and existence of claims, liens, easements and encumbrances. After we have verified the factors, we conduct a professional survey of your property to ensure everything is in order. We will confirm all property modifications and improvements, lot size, soil condition, access ways, rights of ways, boundary lines and more.
We can also contract with a title insurance company so that you can save yourself from unexpected financial losses as a result of title discrepancies.
Property Codes and Zoning
We will verify if the property you plan to purchase meets the current zoning regulations. We can arrange zoning certificates from the local planning office to ensure the current and anticipated use of the property is in compliance with land use classifications and zoning requirement.
For new buildings, we analyze the certificate of occupancy to find out if the property complies with applicable codes. We also verify tax certificates to assess the accurate valuation of the property to help you negotiate the deal. The verification also uncovers any pending tax payments you need to attend to.
Our zoning experts will help you determine if the property is compliant to codes and zoning so that you can take an informed decision. We also make you aware of zoning implications in case you plan further development, alteration or expansion. Our team will keep you abreast of the zoning requirements and relay any changes that might impact your property for the time you want to hold it.
No due diligence process is complete without an inspection of the property you intend to buy. Our inspectors will conduct a thorough inspection of the property to ensure it is structurally sound and comply with codes. Our survey will include the actual building and all ancillary components like parking lots, common areas and garages.
The due diligence inspection covers roofs, HVAC systems, MEP systems, doors, windows, elevators, lights, fire protection systems, landscaping and fixtures. The inspection will evaluate the lifespan of the systems and the required costs you need to replace or repair anything. You may be able to negotiate the cost of repair or replacement with the seller against the purchasing price.
The property survey for residential properties focuses on the above elements along with chimney inspections, pest inspections, water and air quality assessment and so on.
Our property inspections also enable you to determine the boundaries, footprint and utility easements applicable to the property. Utility companies that provide gas, water or electricity have rights of access to their utility lines and can demolish or clear constructions for repairs and replacements. Knowing the easements will help you to plan any future development or expansion accordingly.
The environmental condition of a property is an important consideration whether you are purchasing a residential or commercial property. According to federal laws, you can be held liable for any environmental concern related to your property even if you didn't create the problem. You may also face difficulties getting loans for commercial or residential properties with environmental problems. So it's always prudent to carry out environmental assessments before you make the final payment.
Commercial properties need to perform a Phase I environmental site assessment (ESA) for identifying existing environmental issues. We are licensed to carry out ESA and provide a detailed report which-
If the Phase I ESA discovers environmental problems, we will follow it up with a Phase II ESA which presents the means of remedial actions and the cost. The ESA is mandatory according to federal laws and forms a part of the normal commercial property purchase transaction.
Residential properties don't need Phase I and Phase II assessments, but it's wise to do a pre-purchase environmental assessment to make sure you can use your property to the fullest.
Reviewing leases of existing tenants give you an idea about the income potential of the property and help you decide the purchasing price. We conduct a thorough review of tenant files and their credit-worthiness to ensure your profitability in the long run. Our team also evaluates the condition of leased spaces to determine whether the seller's assessment of property condition is viable or not.
We can help you determine the income of your property based on Net Operating Income (NOI) of the last three years. Our team analyzes the actual operating performance instead of relying on pro forma statements to offer an accurate picture of how the property is doing. We also thoroughly check the lease terms and period and directly communicate with the tenants, if necessary.
Documents that we review apart from the lease agreement include insurance or loan documents, property taxes, utility bills and more.
For residential properties, the verification includes checking for clauses associated with the access of the leased space, renovations and future selling.
Real estate appraisals play a crucial role in determining the value of a property and form an important part of the purchasing process. The appraisal determines the selling price and also decides the amount of loan you can get on your property.
We assess the physical building or plant, geo-demographic information, zoning regulations and comps to appraise your property. Our appraisal will help you determine whether the one done by the seller is appropriate so that you can negotiate effectively.
For residential properties, we adopt different appraisal approach to determine the value such as sales comparison approach, cost approach or income approach.
Income and Expense Analysis
You need to have an idea about the income and expenses of your property to ensure profitability. Our due diligence process helps you maintain the income that the property has generated historically.
We evaluate the operating statement to assess the verifiable costs and determine the monthly expenses that the building incurs. You can also get an idea about the major capital expenditures such as floor or roof replacements that you may need to carry out in the future. Our analysis ensures that the listed income can be collected by you and all costs are inclusive and accurate.
We will help you recreate the operating statement accurately so that you can corroborate it with the buyer's statement for maximum transparency.
Why Choose New York Engineers?
New York Engineers can help you find out all you need about your potential investment so that you can avoid post-purchase difficulties. Our inspectors and lawyers have helped several clients write their success story by enabling them to take fully informed decisions.
We undertake due diligence for both commercial and residential properties. Our team coordinates with the seller, existing tenants and the authorities to offer reliable and comprehensive due diligence service.
Contact us today to help you make a profitable investment.