How to conduct Due Diligence on Properties before you invest
Know how to complete your checklist before investing in properties.
Har Rhythm Kaur
Last Update 2 maanden geleden
After you click on a property you're interested in, you can view pictures and conduct due diligence on the property by clicking on the different tabs, which include:
Asset Attributes
Overview
Financials
Order book
History
Asset Attributes Tab:
- Overview: View pictures, bedroom/bathroom count, square footage, property type, and occupancy status.
- Investment Summary: Breakdown of the total property price, token price, and total tokens available.
- Formula: Total Investment = Token Price x Total Tokens
- Description: Includes lease terms, renovations, and more.
- Location: Google Map integration for precise location and Street View.
Overview Tab:
- View Documents: Access property-specific documents.
Financials Tab:
- Total Investment Value: Total property price, including all fees, divided by 50 to determine available tokens.
- Underlying Asset Price: Contract price by DAO LLC, subject to token appreciation/depreciation.
- Closing Costs: Fees for transferring ownership, inspections, appraisals, and furnishings.
- Operating Reserve: Funds set aside for unexpected repairs.
- Projected Annual Return: Sum of Projected Appreciation and Rental Yield.
- Projected Rental Yield: Annual return based on potential cash flow after expenses.
- Projected Appreciation: Estimated increase in property value over a year.
- Rental Yield: Return on capital based on historical cash flow.
- Annual Gross Rents: Rent payments agreed upon for the year.
- Property Taxes: Local government taxes on the property.
- Homeowners Insurance: Insurance covering losses and damages to the property.
- Property Management: Third-party oversight of property operations.
- Annual LLC Administration and Filing Fees: Costs for each DAO LLC.
- Annual Cash Flow: Profit the property makes annually (Annual Gross Rents - Expenses).
- Monthly Cash Flow: Monthly profit (Annual Gross Rents - Expenses) / 12.
Orderbook Tab:
To make better investment decisions, it is essential to review the trading history of a property from the time it was listed. Understanding the trades that have occurred on the property will help you determine how much to invest and the optimal timing for your investment.
History Tab:
- Market Overview: Information on the property market, including historical growth charts for rent and appreciation.
- Conduct Research: It's important to research the market to determine if it's a suitable investment for you.