Madison Title Agency | Madison 1031 | LeaseProbe/Real Diligence | Madison SPECS

Leaseprobe - Company Profile

Our Services

LeaseProbe/Real Diligence (LPRD) provides, under one roof, the various components required for proper real estate acquisition and lease portfolio management including:

• Financial Due Diligence
• Lease and Loan Abstracts
• Argus Modeling and Variance Reports
• Offering Memoranda
• Estoppel Certificates and SNDA Agreements
• Lease Administration and Operational Setup
• Lease Software Input and Support
• Common Area Maintenance (CAM) Audits
• Property and Asset Management

Financial Due Diligence
LPRD is able to provide timely, accurate and reliable financial due diligence for commercial real estate acquisitions, with comprehensive analysis of past performance, growth potential and possible trouble spots. LPRD carefully and comprehensively conducts painstaking due diligence, meticulously examining all income and expenses, financial statements, cash flow and budget projections and verifying and validating every number relating to the asset. This careful, meticulous approach adds value to any acquisition by assisting with the negotiation of purchase price and providing the foundation to the effective ownership and management of the asset. The goal is to audit the property financials in order to provide the client with an exact Net Operating Income (NOI) for the property and uncover every aspect of the financial health of the property. Upon completion of a thorough and complete financial review, all findings are clearly presented in highly customizable reports with user-friendly executive summaries.

Lease and Loan Abstracts Either as part of the due diligence process or during the management of the asset, LRPD is able to carefully extracts every significant item of each lease file to compile a customized and easy-to-read lease abstract and master report. Leases are abstracted in such a way as to not only reveal all pertinent information about the property’s tenants but to ultimately allow for the smooth running of the asset by capturing every actionable item needed for effective management. When applicable, LPRD also reviews, organizes and abstracts all existing loan documentation encumbering an asset. These high quality, detailed yet concise lease and loan abstracts are produced with unrivalled turnaround times. With over 125+ full time, in-house lease professionals, each lease abstract features unambiguous lease abstract language and clear interpersonal communication focused on 75 key financial and legal provisions about the property, including lease terminations dates, renewal dates, security deposits, rent projections, and more. Information is provided for easy integration into any lease management system.

Argus Modeling and Variance Reports Additionally, as a limited due diligence option, LPRD offers clients an Argus Discrepancy Report or uses its own proprietary software to generate a Variance Report. These reports are geared for clients that wish to either conduct their own due diligence review or need only a limited review. These reports compare - per tenant - term, income and reimbursement information provided to existing financial property documents, either validating the information or highlighting areas of discrepancy that warrant further investigation. For companies conducting their own due diligence, these reports are useful tools to ensure that all potential discrepancies are captured. In situations where only a limited due diligence analysis is needed, this report provides a solid basic review. Using Argus or its own software, LPRD is able to help clients quickly and accurately analyze commercial real estate assets and transactions, understand market realities and risks, forecast property cash flows, and calculate investment values and returns. These reports also help clients to develop leasing strategies, business and marketing plans, share asset and transactional data with partners and colleagues, and provide customized dashboard visibility into properties and portfolios.

Offering Memoranda For buyers seeking financing partners, LPRD creates Offering Memorandums. This sophisticated documentation is used to communicate a real estate investment’s appeal to potential financing partners. While OMs had traditionally been a tool for sellers, that has changed. Buyers understand the value in having an OM to present to investors and Boards of Directors. LPRD’s graphically-designed Offering Memorandum packages data and investment highlights in a comprehensive, brochure-style document that includes a full property description, Income and Expense data, market comparables, historical Financial Statements, a projected Budget, and photography.

Tenant Estoppel Certificates and SNDA Agreements In preparing for a closing on an acquisition, a buyer will need to obtain Estoppel forms and SNDA (Subordination, Non-Disturbance and Attornment) Agreement that meets the client’s preferences. LPRD is able to prepare Estoppel and SNDA agreements, and then track the progress of each Estoppel Certificate and SNDA Agreement to ensure completion before closing.

Lease Administration and Operational Setup Once acquired, a property owner must quickly prepare it for management. Whether the property was acquired with the intent of repositioning and then disposition or for long-term management, the next step is to capture and manage the property’s vital information. LPRD effectively manages complete real estate lease portfolios, including conducting a full initial audit of historical financial documents from an operational perspective with a focus on improving quality and finding efficiencies. Documents audited include historical service and maintenance contracts, property tax bills, energy contracts and variances year-to-year with in-depth analysis of increases and decreases.

LPRD is also able to review and analyze the management personnel structure, learn the procedures and common practices of the third-party manager in order to provide recommendations based on each individual operation, provide and maintain foresight support, compile a final rent roll for internal use, and populate the Landlord’s property management system (i.e. Yardi, MRI, etc), entering all actionable property information. Likewise, they administer all essential lease dates and dollars to ensure that critical dates, options and rent step-ups are properly tracked and reported, bookmark lease documents, and ensure all rents are being paid according to the leases. It can also compile a budget based on past history and the current position of the property and identify and track critical lease dates.

Lease Software Input and Support The LeaseProbe team is also certified to then provide Yardi and MRI lease software training, as well as other major lease software programs. The property’s information is loaded into the program to ensure dates and deadlines are not lost or forgotten.

Common Area Maintenance (CAM) Reviews LPRD is also able to assist in a comprehensive review of the operating expenses in all common area pass-thrus to accurately determine the amount each tenant should pay for CAM.

Property and Asset Management Once the property has been acquired and combined with the company’s other assets, it is ready for ongoing management. For clients not interested in dealing with the daily hassles and headaches of managing property, LPRD can provide long-term property and asset management support for landlord-owners. LPRD is able to assist in the operation, control, and oversight of the property on behalf of the owners well beyond traditional property management. That includes overseeing all of the processes, systems and manpower involved in the operational life-cycle of the property: acquisition, control, accountability, efficiency, responsibility, maintenance, utilization, and disposition. In addition to routine management, LPRD can conduct full and proper screening or testing of a potential tenant’s credit, criminal history, rental history and ability to pay, manage the accounts and finances of the property and conduct monthly and quarterly analysis of the property’s tax bills, energy bills, property insurance, etc. to spot irregularities and deficiencies, and identify opportunities for streamlining operations and reducing costs.

The LPRD team can also manage lease contracting and rent collection, including intense pursuit of non-payments and evictions, as necessary, conduct mitigation and remediation regarding maintenance issues within the budget, manage business interactions with tenants, contractors and insurance agents and prepare the CAM bill for each tenant. They also conduct annual CAM / Operating Expense reconciliation to ensure information and billing data is up-to-date, and deliver multiple reports as frequently as needed by the client. Reports include financial year-to-date statement reviews against previous year, year-to-date against budget, critical dates, options, rent step-ups, building and portfolio wide, etc. They can also offer lease and expense consulting as needed, and maintain the Landlord’s property management system.

There are additional services LPORD can provide to help property owners above and beyond typical property management support. LPRD can administer property insurance, initiate tax appeals as appropriate, handle property maintenance and repairs and manage property improvements as needed. They can also consult on energy conservation, provide construction management as needed for property renovations and supervise third-party management, as needed.