The review of a current property budget would be done in which part of the due diligence process?

The review of a current property budget is primarily conducted during the preliminary due diligence phase. This phase involves gathering essential information about the property to assess its financial viability and potential issues that may affect investment decisions or management strategies.

During preliminary due diligence, potential investors typically request operational documents, including the current budget, to evaluate the property’s historical financial performance and operational efficiency. Analyzing the budget allows stakeholders to identify any red flags, such as excessive expenses or revenue shortfalls, that could impact the property's future profitability.

In contrast, comprehensive due diligence goes deeper into financial scrutiny but is usually done after the preliminary phase. Environmental due diligence focuses specifically on any environmental liabilities associated with the property, while title due diligence examines ownership and legal encumbrances. Therefore, understanding the property's budget aligns best with the preliminary aspect of due diligence, as it sets the groundwork for further analysis.