# Investor Due-Diligence Checklist

Educational use only. This resource is not investment, legal, tax, accounting, or securities advice. It is not an offer to sell or a solicitation of an offer to buy any security.

Use this before a sponsor call, during document review, and again before any private decision. The goal is to separate facts, assumptions, missing items, and professional-review questions.

## 1. Sponsor background

- [ ] Identify the sponsor, operator, asset manager, and capital-raising parties.
- [ ] Ask for full-cycle examples, not only unrealized paper gains.
- [ ] Ask what went wrong in prior deals and how the team communicated it.
- [ ] Request references from investors, lenders, brokers, or property managers when appropriate.
- [ ] Note any role that is outsourced and who is responsible for oversight.

## 2. Deal assumptions

- [ ] Match current rents to the rent roll.
- [ ] Compare market rents with named comps, not only a market average.
- [ ] Separate historical expenses from projected expense improvements.
- [ ] Stress vacancy, bad debt, rent growth, insurance, taxes, payroll, and repairs.
- [ ] Write down the one assumption that would change the deal fastest.

## 3. Debt and reserves

- [ ] Confirm loan type, rate, maturity, amortization, covenants, and recourse.
- [ ] Ask whether the rate is fixed, floating, capped, or assumed.
- [ ] Identify refinance or sale timing pressure.
- [ ] Review operating, capex, and debt-service reserves.
- [ ] Ask what happens if the business plan takes one extra year.

## 4. Documents to request

- [ ] Investor deck or summary.
- [ ] PPM and risk factors.
- [ ] Operating agreement.
- [ ] Subscription agreement.
- [ ] Debt summary or term sheet.
- [ ] Rent roll and T-12.
- [ ] Capex budget and timeline.
- [ ] Property-management plan.

## Decision log

| Question | Evidence found | Still missing | Owner / next step |
|---|---|---|---|
| Sponsor fit |  |  |  |
| Market thesis |  |  |  |
| Debt risk |  |  |  |
| Exit risk |  |  |  |
| Legal/tax review |  |  |  |