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 of cost to complete
• Review identified related party transactions

For more information, please contact:

Newport Beach
Larry Smetana
Jennifer Hegg