Page 111 - Trump University Commercial Real Estate 101

Locking in Y our Profit

Every other important date in the contract will be based on that
Effective Date.

Inspection Period

As you can see from the earlier paragraph, the Inspection Period lasts for
30 days after the Effective Date. This is also called the Due Diligence
Period .
This is when you really roll up your sleeves and have a detailed
look at the property. It ’ s when you do three major inspections —
fi nancial, physical, and legal (we cover this in a later chapter). During

the Inspection Period, if you are not satisfied with the property for any
reason, you can walk away and get back your entire deposit.
It ’ s vital that you remain constantly aware of your Effective Date:
Should you decide to walk away from the deal after that date passes,
you will get none of your money back.
Your due diligence information request from the seller will
include:

• Current title commitment paid for by seller
• Any property survey the seller has
• Existing leases, current rent roll (showing lease rent, lease expi-
ration, and security deposits paid for every tenant)
• Bank deposits for the most recent three months (certifi ed by
the bank)
• Profi t - and - loss statements for the past three years
• Capital expenditures for the past three years
• Architectural, engineering, and feasibility studies as to the con-
dition of the property, if the owner has these documents
• Environmental reports (Phase I or other reports), if these are in
the owner ’ s possession
• Inventory of personal property used in connection with the
property
• Real estate tax and insurance bills for the previous two years
• All active service agreements with vendors

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