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:
Los Angeles/ Newport Beach/ San Diego
Larry Smetana
Jennifer Hegg
