The most important decision in real estate investing is whether to buy — and that decision is only as good as the due diligence process that informs it. At RIYT, we have spent a decade building and refining our 47-point due diligence framework, which we apply consistently to every acquisition regardless of deal size, asset class, or time pressure.
Physical Due Diligence
Every property undergoes a full physical inspection by a licensed inspector and, for commercial assets, a professional engineer. We specifically look for environmental issues (Phase I ESA is standard; Phase II when indicated), deferred maintenance that would not appear in financial statements, and capital needs that would impact early cash flows. Our inspection reports go beyond surface-level assessments — we inspect mechanical systems, roofing, foundation, and electrical in detail.
Financial Due Diligence
We verify all income and expense data against source documents — actual rent rolls, lease agreements, bank statements, and utility bills. We never rely solely on seller-provided proformas. Our financial model stress-tests the acquisition under multiple scenarios: base case, downside (10% lower rents, higher vacancy), and severe downside (25% vacancy for 12 months). All three scenarios must produce acceptable investor outcomes before we proceed.
Legal Due Diligence
Title search, survey review, existing lien identification, zoning verification, and entity structure review are all standard. We also review any existing litigation, environmental liability, and regulatory compliance issues. Our legal team flags any items that could affect investor returns or create future liability.
Market Due Diligence
We do not simply accept broker market studies. Our team conducts independent competitive analysis — visiting comparable properties, surveying rental rates, and modeling absorption and vacancy trends based on supply pipeline data. Every RIYT acquisition must pass our proprietary market scoring model before closing.