Real Estate Due Diligence Consulting Request Inspection Now

MULTI-FAMILY RESIDENTIAL DUE DILIGENCE SERVICES


Feasibility Studies with Cost Analysis

The objective of our Feasibility Study with Cost Analysis is to ascertain if the real estate developer has allocated sufficient resources and vetted the proposed improvements to the best of their ability.  By completing this pre-closing task, our clients are well informed of the proposed improvements, the obstacles the developer may encounter and the sufficiency to complete the improvements.

In circumstances where the project is of a smaller scope or when our clients only want to verify sufficiency to complete the improvements, we perform a Cost Analysis that is also referred to as a Budget Review.   The proposed improvements are summarized and a determination is made whether sufficient funds have been allocated in the budget through a Cost Verification Summary.

Both of these methods provide an independent opinion of the proposed improvements as they relate to the site development and/or building construction of the subject property.  In addition, any areas that may be cause for concern during the improvement process are discussed.
 

Property and Building Condition Surveys  

When you are considering financing or investing in an existing property it is essential to obtain a thorough assessment of the property’s condition.  There is nothing worse than when a developer or investor purchases a property only to find out shortly thereafter that the roof system is deficient or there are structural issues that must be addressed prior to use.  By utilizing the Property and Building Condition Survey method, our clients are well informed of the “warts.”

DCMI’s Property and Building Condition Survey is performed in accordance with the ASTM E2018-08 standard which is the industry baseline method.  During our Property and Building Condition Survey we identify physical deficiencies that include the presence of conspicuous defects or material deferred maintenance of a subject property's material systems, components or equipment observed during the field observer's walk-through survey. Subsequently we prepare an opinion of the probable cost to remedy physical deficiencies within our well-formatted and easy-to-understand Property and Building Condition Survey.
 

Appraisals and Appraisal Reviews

Residential appraisals are available throughout Virginia, Maryland and the District of Columbia.  DCMI’s licensed appraisers have an in-depth knowledge of the marketplace where your subject property is located.  Unlike other appraisers in the Metro DC area, we are able to provide appraisals of rural Maryland and Virginia where data is difficult to obtain or is limited. The subject property is carefully compared to other properties with similar characteristics that sold in the same market area.  We deduct value for comparative deficiencies and increase value for amenities.  Drive-by appraisals are available in Maryland, Virginia and the District of Columbia for Real Estate Owned (REO) Construction and foreclosure properties as well.

In addition to Appraisals, we are pleased to provide Appraisal Reviews whereby we employ our expertise to confirm the values and comparables enumerated by the Appraiser to accurately reflect the subject property as it relates to the marketplace.
 

Environmental Assessments

Phase I Environmental Site Assessments

This is the only due diligence tool available that will satisfy the Environmental Protection Agency’s CERCLA requirements.  During DCMI’s evaluation our experienced staff members identify and document past and present on-site activities that may have resulted in potential impacts to the environment.  Also, we identify and document the past and present activities of nearby properties that may pose an environmental risk to the subject site.

DCMI conducts a site visit and inspects for recognizable environmental concerns including asbestos-containing materials, lead-based paint, mold and other environmental contaminants. Photos are included in the resulting detailed report.  This assessment does not include deconstructed testing.
 

Transaction Screen Assessments

The purpose of this assessment is to define good commercial and customary practice in the United States for conducting a transaction screen for a parcel of residential real estate where the user wishes to conduct limited environmental due diligence that is less than a Phase I Environmental Site Assessment.  As part of this assessment DCMI performs a site assessment to observe any environmental quality concerns, reviews the relevant database information to determine if the subject or adjoining or surrounding properties have been adversely affected by environmental contamination and summarizes our findings, opinions and conclusions in a report that is prepared in conformance with the ASTM standard.
 

Phase II Environmental Site Assessments

Suspected environmental hazards are sampled and tested by DCMI.  Deconstructive methods are used if necessary.  Laboratory results are included with corresponding findings in DCMI’s report.
 

Environmental Risk Assessment with Database Review

This service includes an extensive environmental database search and examination of the listings. DCMI opines on the risk to the lender and borrower based on historic and present use.  This method is a cost-effective solution for multi-family residential buildings located in residential zoning districts.
 

Construction Progress Monitoring Inspections

While construction is progressing it is critical to monitor your risk throughout the process—after all, you have provided the project funding either through a loan or an investment and must ensure that the improvements are progressing within the constraints of the pro-forma.  Following client notification, DCMI visits the project to perform a thorough on-site Construction Progress Monitoring Inspection.  

During our site visit we observe the project’s progression relative to the requisition for payment and then we compare our observations to the plans and specifications to confirm the project is being constructed in accordance with the appraisal and constructing financing parameters. During our review of the requisition, we determine if the borrower or their contractor has included change orders that may increase the project costs or modify the scope of the improvements, confirm stored materials are onsite or offsite, review the regulatory databases for building permit compliance and most importantly verify sufficiency to complete the remaining improvements. 

We offer an easy-to-use and secure online ordering form for our clients to request inspections which allows our clients to denote their desired return date and allows for document uploads.  Upon completion of our on-site inspection, we submit our Construction Progress Monitoring Inspection Report in an innovative and concise format that is well received by national and community banks throughout the Mid-Atlantic Region.
 

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