Due Diligence for the Real Estate Industry

The Squar Milner Real Estate Services Group has developed due diligence procedures specifically designed to address the problems often associated with equity financed residential and commercial developments. Our procedures can be modified to accommodate specific project concerns, however, they generally include the following:

• Ascertain that all refundable utility deposits have been accounted for and received
• Verify that all developer allocated costs such as insurance and payroll, have been allocated
• consistent with the operating agreement
• Determine that costs are properly categorized
• Recalculate overhead fees and sales commissions taking into consideration the proper
• treatment of option revenues, option costs and customer extras
• Review the project trial balance for unusual balances or transactions
• Recalculate preferred returns
• Review the Estimate to Complete
• Review all related party transactions.

For more information, please contact:
Newport Beach
Larry Smetana
Jennifer Hegg