Portfolio Due Diligence
Portfolio Due Diligence
Portfolio Due Diligence
If you’re looking to add properties to your portfolio, you’re likely aware of the importance of due diligence. You want to be confident that you’ve budgeted appropriately for the property and can get the underwriting you need to close the deal.
At BlueTeam, we provide investigative assessments supporting underwriting allowances or credits and identifying post-closing capital needs.
This is one of the many services we offer to help you manage a commercial real estate portfolio. Learn why BlueTeam is the #1 choice for portfolio owners.
Why Due Diligence Matters
Support Underwriting Allowances
In order to get the financing approved for a commercial real estate property, you need to have a thorough understanding of the risks involved in buying, upgrading, and maintaining it. Many factors can affect these numbers, but the property itself is one of the most important.
At BlueTeam, we’ve seen the problems that can occur due to disaster or contamination. One of our major focuses is on helping properties get back to business after difficulties occur, but this also means we’re familiar with just how much these issues can affect a business.
There are a variety of different kinds of risks we look at, including the age of both the roof and the building itself. We’ll also look at where the property sits in relation to flood zones, fire zones, storms, and so on.
Additionally, we make sure to take a look at unplanned events that have happened with the building over time.
We can perform some of the inspections and provide the documentation you need to get underwriting to buy a property. This lets you rest easy knowing that financing is covered and any future mishaps are accounted for.
We’re also prepared to partner with other vendors because we understand that underwriting requires more than just information about the property. The information we provide can be used to enhance your underwriting application.
Once you’re confident that you have all the data you need regarding a property, you can also rest easy knowing that any information you provide to investors of your portfolio is accurate.
Finally, due diligence can help you get your property insurance approved.
When you apply for property insurance, insurers will ask you for a range of information about your property to determine the level of risk they may be undertaking. The insurer will use this information to calculate the premiums you will need to pay to secure coverage.
By providing accurate and detailed information during the due diligence process, you can increase your chances of getting your property insurance approved.
If you fail to provide all the necessary information, the insurer may reject your application or offer limited coverage, which may not fully protect your property in the event of an incident. Therefore, it’s essential to be thorough and transparent when providing information to your insurer.
Identify Post-Closing Capital Needs
No matter how extensive your portfolio is, every property you buy is a significant investment. The last thing you want is to purchase a property and realize that you don’t have the resources required to make it work financially.
This is one of the reasons why due diligence is necessary: we’ll examine the property and look for any issues that need to be addressed in order for the property to become fully operational. This allows you to budget appropriately for any repair or restoration needed.
Due diligence also allows you to see which areas of the property are affected. In some cases, we will be able to provide restoration or repair services while you get the rest of the property up and running. In other cases, work may need to be done before the property becomes operational.
Regardless of the situation, we guarantee you will have the information you need to understand the state of the property and any financial issues the property may face due to damage, degradation, or contamination.
This information can also be used when negotiating with a seller. If you budgeted a certain dollar amount for the property, but the seller has not appropriately maintained their property, you can make the case that the cost of repairs/restoration should be removed from the price of the property.
Reducing the price you must pay for the property can make the deal more favorable to you. In other cases, discoveries may incentivize buyers not to go through with the deal and use their capital for other projects. Regardless, this information is essential for helping buyers ensure they’re utilizing their capital properly.
What Do We Look for?
We have extensive experience providing construction, restoration, and roofing services to commercial properties. This means we have the expertise necessary to spot a wide range of issues, including:
- Water Damage
- Mold
- Fire, Smoke, & Soot
- Roof Damage
These forms of damage can be extremely detrimental to businesses for a wide range of reasons, including:
Business Interruption
If a commercial property is damaged by water or fire, it may be necessary to close the business temporarily while repairs are being made. This can result in lost revenue.
Mold can be an even bigger issue: along with needing to close down your business to handle repairs, your business’s reputation could also suffer if people are concerned that you let mold grow on your property.
Health Hazards
Water damage can create an environment where mold and other harmful bacteria can thrive. Exposure to mold can cause a variety of health problems, including allergies, respiratory problems, and infections.
Smoke and soot can also cause a variety of health problems, including respiratory issues and other illnesses. These issues can lead to liability claims and potential lawsuits from employees, tenants, or customers who have been negatively impacted by exposure to mold, smoke, or soot.
Structural Damage
Water can seep into the foundation and walls, causing warping, rot, and other structural issues that can compromise the integrity of the building.
Property Damage
Water, fire, and mold can all cause significant damage to building materials, equipment, and other property within the building. This can result in costly repairs and replacements. In some cases, it may even require the building to be rebuilt entirely.
When looking at property damage, it’s important to pay special attention to the roof of a property. Roofing issues such as leaks, cracks, and holes can cause water damage to the interior of the building, including damage to walls, ceilings, floors, and equipment.
Increased Insurance Premiums
Frequent claims can result in increased insurance premiums for commercial property owners, which can add a significant extra financial burden to the cost of your portfolio.
Code Violations
Property damage can result in the violation of building codes, and failing to address it can result in fines and penalties from local authorities, as well as representing major reputational damage to your business.
Energy Efficiency
Structural damage can lead to increased energy costs due to poor insulation and air infiltration. This can result in higher utility bills and reduced profitability for the business.
Safety Hazards
A damaged roof can be a safety hazard for employees, tenants, and customers. Falling debris or leaks can cause slips, trips, and falls and may even result in more serious injuries.
What If We Find Issues with the Property?
If we find issues with a property you own or a property that you are choosing to purchase with the full knowledge of our findings, you can rest easy knowing we can get the work done.
We break our proven process down into four steps:
- Inspect
- Diagnose
- Treat
- Document
The due diligence process means we will have already taken a look at the issue and diagnosed the problem. This means we’ll need to address the root source of the issue, providing any restoration work as necessary.
Throughout the process, we also create all the necessary documentation. This helps us make sure that you have all the information you need regarding the process. It’s also important as you ensure that your claim is paid with the insurance company.
In some situations, we may determine that reconstruction is necessary to get your business fully operational again. In that case, we will provide you with all the details of what needs to get done and wait for your approval to begin.
We provide the following reconstruction services:
- Structural Repairs
- Interior Finish Work
- Mechanical, Electrical, Plumbing
- Demolition
Why Portfolio Owners Work With BlueTeam
As you can see, commercial property portfolios are likely to face a wide array of disasters over the years. And the more properties in a portfolio, the more frequently you will encounter these issues.
In fact, damage can be exacerbated with time. For example, it’s bad if your property experiences water damage. That said, it worsens over time if the water is allowed to sit and create the perfect environment for mold growth.
This is why it’s crucial to find a restoration company that works fast and also has the capacity to keep you abreast of the developments occurring across your portfolio.
BlueTeam is proud to partner with portfolio owners and help them understand the state of their properties. When you choose to work with us, you choose to work with an organization that has significant experience with restoration, construction, and roofing.
Many organizations choose to partner with us because we are company-owned and operated. This means we have the full authority to provide the highest level of service to our clients.
Here are just a few of the benefits we offer that portfolio owners can take advantage of:
- BlueLine Priority Response
- Pre-Loss Assessments
- Property Weather Tracking
- Portfolio Risk Analysis
- Portfolio Due Diligence
If you ever have any questions, you can take a look at our app, which allows you to see the macro picture of what’s going on with all your properties.
Are You Looking to Partner With a Company That Can Perform Due Diligence on a Portfolio of Properties?
You’ve come to the right place. BlueTeam works with all kinds of property owners to ensure they have the restoration, construction, and roofing services they need. We are here when you need us – any time. Every time.
Do you have any questions about what we can do for you? Would you like to speak with a restoration expert who can help you understand the full range of restoration services available to portfolio owners?
Please don’t hesitate to reach out to us today. We’re ready to answer all of your questions. Along with a free quote, we’re also happy to offer a demo to help you get a better idea of what to expect when you choose BlueTeam.
