Due Diligence - Real-estate solution

Real Estate Transactions

In addition to high transaction expenses real-estate business investments distinguish themselves, fi rst of all, by the tendentious long life time and the capital. Therefore a careful test of the real-estate business is required before contract conclusion. All chances and risks of the investment object must be uncovered, analyzed and weighed out. This takes place in the Due Diligence process.

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Market Entry Management GmbH

Software Solutions

For further informat ionplease v is i t :

www.conact .de

A div is ion of KowoGroup- www.kowogroup.com-

IT-Solutions -thought out till ehe end

Due Diligence in practice

Export into various applications

The module is rounded up by interfaces that make it possible to export all rental agreements in a Property Management application. You may see all other interfaces from the following chart.

Of course the security within the module is important for us.

This process which seems to be simple from the theoretical sight is often time-consuming and difficult in practice. All necessary documents and information must be collected by different partners like offices, authorities, owners, technical engineers etc. To maintain an overview, it must be documented in detail, when + which information was requested by whom, when it was received, where they were filed and who has carried out the appreciation at last and whether the pricing has been good or bad.In practice you often see that important information that can have a negative effect , is not recognized among the other information in a document. These circumstances of an offence usually don’t attract attention by purchase completion of the contract, but during the management.

In practice you may often notice that passing the documents to the Asset and Property Management does not run optimally. During the management, questions from the Asset and Property management arise, because documents cannot be found any more.

Everybody who is familiar with this subject, has to question himself quite often how this process can be optimized. A DD process on the real-estate level divides itself into the following areas that are visualized in the chart above.

The Features of the module

summarized:

• Document management• Data room Functionality• Doc Rating Status (Completeness of the Documents)• Doc Rating content (Substances for the document)• Moderation functionality• Support in negotiations• Reporting• DD – Report• Interface in 3. Systems, example Property Management• Web Access

Our solution

We have taken care of this subject concerning the Due Diligence module of the software CONactor. Our aim is to picture the moderation process of all parties involved in a Due Diligence clearly and transparent. By this content, it is not from importance whether it is about a purchase or sales Due Diligence. In the course of the expanding internationalization the module was designed completely web based, so that every user has the possibility under the condition of an Internet connection to serve the application independent of location.The center of the application lies on the documents and a powerful, dedicated parameterizable data space which manage all information. It makes no difference, whether it is about object information, or covering letters to authorities to procure object information.

All information is managed and provided for all team members without depending of place. A reporting about the current status of the object test is also realized and enables you to see whether your project runs still in time.It is important not only to offer a „document collection“, but also to give our customers the possibility to judge the quality of the existing documents or to make a general property pricingon the bases of a document. This ends at the point where you have the possibility as a user to execute even deductions from pricing the purchase price and to give dedicated reason. For that you can also directly slip in parts of those reports into your business plan for the new object and set up simplified liquidity plans.In conclusion the module DD of CONactor software generates a DD report automatically which can be used as a basis for the purchase negotiation.

Classification of REAL ESTATE DDin context of the transaction process

Profile ofrequirements

Identificationof suitable

investments

RealEstate

DD

Contractnegotiations/

purchase

Core Processes of Real Estate Due-Diligence

MarketDue

Diligence

LegalDue

Diligence

TaxDue

Diligence

TechnicalDue

Diligence

EnviromentalDue

Diligence

Due Diligence Report

Investment decision