At Eqaree, independent licensed experts provide due diligence on behalf of our investors and put every real estate opportunity to the test against our most conservative financial models before listing them on our platform.
Every opportunity is evaluated against three core parameters & including hundreds of data points to ensure only investments worth considering are made available to investors, furthermore we provide investors with specific attributes of every deal on our platform so investors who want to make their own assessment can do so easily.
The first parameter we investigate when we analyze an investment opportunity is the property sponsor. The Sponsor is the individual or group of individuals who own or are developing the real estate property. We consider multiple aspects when evaluating individuals wishing to list their properties on Eqaree.
We conduct thorough background, criminal and credit check to identify any items of concern.
We secure references from the sponsor’s business network and map all the relationships the sponsor has in the financial and the property management market to mitigate any conflict of interest risks
The second parameter we examine when assessing a real estate deal is the market of the property. The market of the real estate property is critical when determining the return on investment. A few areas Eqaree considers are the economic trends, the demographics and comparables of the market.
We check market trends of property values in the area, analyze jobs and industry growth in the neighborhood and evaluate the overall market size
We compare sales and lease information of adjacent properties to asses the potential investment of the examined property to make sure we are in line with the financial model.
The third factor we analyze is the condition of the property or asset. We evaluate the current physical condition and compare the information we gather with the real estate company's business plan to determine its viability.
We examine the rent demand in the area of the property then check if the property can meet their specific needs. We calculate vacancy and rental rates and compare the rates to the rest of the market
We identify all the needed expenses to make the property operational, then examine the replacement cost and any functional obsolescence