Course 1.0 – Week 4 Lesson 2: Due Diligence: The Financial Audit

The financial audit is central to the due diligence process, because it is the way you verify the current state of the property and the basis for your financial projections. We will cover how to conduct a lease audit is to verify that tenants actually have signed leases, that the lease amounts are consistent with the rent roll, and that tenant credit is strong.

We will walk through delinquency and bad debt reports. We will also discuss the importance of reviewing the general ledger, expense invoices, and bank deposit statements.