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floppy29

You can check this link with a due diligence checklist that I provided in a different post: https://www.reddit.com/r/CommercialRealEstate/comments/vfj5w5/comment/icwc5iv/?utm\_source=share&utm\_medium=web2x&context=3


duhbert

Thanks - yea I saved that post. Glad I stumbled on this great board. Everyone very helpful!


lswins

Hire an agent


nola78

Get a firm that can do it for you. Then, you'll know what to look for the next time. Honestly for this sort of RE you probably want a firm for the first many projects. My colleague develops assisted living for our company. It's really tough. What role are you playing? Project manager? Developer? Will you be entirely removed from the underlying business? Do you know anything abt assisted living? Is federal money involved bc then this becomes a whole different beast. You say you know what diligence "generally involves". What does that mean? Have you run a project before?


duhbert

Nola - thanks for the thoughtful response. I have researched the space and brought the idea to some folks who are backing the deal. I would be buying the existing property and leasing it to the operator taking over operations. So, I'm the property GP that has a NNN lease to the operator (of which I'll have a small minority interest). I don't really have to know how to operate assisted living as I've done a lot of vetting for the management team who is taking over operations (though I do know what to look for on KPIs). I have never run a "project" before but this is just buying the building and NNN leasing it out. I am definitely going to hire someone to help - I just want to know what to consider/think about.


nola78

Got it. Cool. That makes sense. Things I'd do: - Title search/review - Have a capital needs assessment done - Negotiate based on findings - ALTA survey - Phase 1 - Depending on age of structure: lead/asbestos testing - Ask if there are currently any contracts in place for the property - What are the utilities that serve it? - Any sort of green upgrades? Usually there are tax breaks and they can save you money. I'm also bias sure there's a million more


spalooosh

Hey, DM me and I'll send you a checklist. It's not health care specific, but it gives a good overview of stuff to look for. I use this with all my clients.


duhbert

Thanks Spalooosh - sent a message