Due diligence research in San Diego County may take a lot of time and effort. Nonetheless, it has to be the Number One item on a buyer’s, leaser’s, or developers to-do list when purchasing or leasing real estate that needs to be entitled. So before you decide to skip this vital step, we have more information about what due diligence involves and how it can save you from a costly mistake.
What is Due Diligence Research in Land Use/Development?
Due diligence research provides the gateway for development projects. It involves a thorough search to find all possible opportunities–and problems–with a piece of land. This in-depth examination ranges from zoning and land use research to permits currently in place and environmental restrictions.
The primary purpose is to evaluate the risk level of acquiring and developing the property as well as potential costs. The depth and scope of this research and analysis can make or break a project. In other words, you want to take your time with this assessment and go as deep as possible into the history, use, zoning, etc., before buying a structure and/or lot.
Why Due Diligence Matters in San Diego
If you wonder about the importance of conducting due diligence research in San Diego specifically, the findings could mean the difference between failure or success as we’ve mentioned above. You’ll save time and money if you gain a firm understanding about:
- Compliance with zoning and land use
- Any environmental issues
- (Again, if relevant) any issues with infrastructure (ie, parking)
While some problems with a property count as deal-breakers, you might find that some issues are fixable and won’t cost a lot in time or money. In those situations, you might consider renegotiating your purchase. Otherwise, if you blindly go into a project, you’ll regret it later on if your business launch gets delayed on account of needing the proper permits or more extensive repairs.
Key Components of San Diego Due Diligence Research
So what exactly are you looking for in this part of the process? Whether you’re conducting zoning due diligence in San Diego or some type of inspection, you’ll notice some common components, such as:
- Reviewing pertinent laws and regulations to determine any required entitlement (i.e., discretionary or ministerial permits)
- Reviewing the necessary documentation
- Gaining a firm understanding of what approvals and waivers are needed
It’s also smart to ask your real estate professional to secure the longest possible due diligence period during escrow to allow as much time as possible for this process, which can take weeks for a good, thorough search. Additionally, if possible, you should look for an “out” for either party in the event the project proves to be problematic.
Common Mistakes Developers Make Without Proper Research
As we can see, the consequences of ignoring the key components of due diligence could make a real estate deal go south. Regardless, some property developers still insist on ignoring the following:
- Zoning due diligence
- Land use due diligence
- Real estate due diligence
From checking for liens on a property to ignoring zoning laws, these common missteps can result in lost revenue.
Ignoring Zoning Due Diligence
For example, if you fail to conduct zoning due diligence in San Diego, and your property and operations do not comply with the current zoning regulations and land use ordinances, you could end up with code violations and potential fines for the code violation.
Avoiding All Other Potential Issues
Another error that happens much too often is failing to conduct structural inspections—and that pertains to everything from the inside out. We’re talking about foundations, electrical, plumbing, and even with commercial property, you should still check for termites. You just never know what to expect when you’re making this type of investment.
Therefore, completing any research or assessment related to the realm of real estate due diligence offers not just peace of mind but also a pathway toward getting your project off the ground with less obstacles.
How Strom Permit Helps San Diego Projects Move Forward
Once you understand the importance of due diligence research, the next step is finding the right team to handle it for you. That’s where Strom Permit steps in. Our project managers know how to dig into the details, connect with local agencies, and uncover everything you need to know before committing to a property or project in San Diego.
Here’s what our process looks like in action:
- We start with zoning and code analysis. Our team checks local zoning rules to see if your project will need a Conditional Use Permit (CUP) or any special approvals.
- We look for red flags early. From parking and traffic to noise and neighborhood fit, we identify potential issues that could cause trouble later.
- We review environmental factors. If there are land or CEQA-related concerns, we make sure they’re on your radar before you move forward.
- We assess the local sentiment. Understanding how decision-makers and nearby residents might react to your project can make a big difference in the approval process.
- We give you a full picture. You’ll get clear insight into how challenging the approval process might be and how your project compares to others in the area.
- We stay by your side. If everything checks out, we will continue helping you secure the necessary permits and licenses so your project can move ahead smoothly.
By the end of our due diligence process, you’ll know whether to move forward confidently or keep searching for a better opportunity.
Final Thoughts
Basically, you can’t leave your due diligence research to chance. Being that it’s time-consuming and requires a lot of attention to detail, you’ll need an expert who knows the ins and outs of city and county ordinances and can conduct a thorough, in-depth study of the property. Moreover, you can count on us for a complete and honest report that’ll guide your purchasing decision. Contact Strom Permit for a consultation and to get all your questions answered.
