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How to Run Due Diligence on a Parcel

A step-by-step process for running full due diligence on a parcel in Prophetic — from ownership to yield estimate.

Written by Mikaila McLane

Prophetic consolidates every layer of parcel-level due diligence into a single view. Here's how to work through a site systematically so you catch issues early and arrive at closing with no surprises.

Step 1 — Start with Ownership

Click any parcel to open the property panel. The first thing to review is ownership — who owns it, how long they've held it, and what they paid. Long hold times and low cost basis often signal a more motivated seller. If the parcel is owned by an LLC or trust, use Find Contact Info to identify the person behind the entity before you invest more time in the site.

Step 2 — Check Zoning with ZoneAI

Open the Zoning tab to see the zone code, permitted uses, minimum lot size, setbacks, and density limits. Confirm your intended use is permitted by right — not just conditionally. If the parcel requires a rezoning or conditional use permit to support your project, factor that timeline and risk into your underwriting before going further.

Step 3 — Run Environmental Constraints

In the property panel, review the environmental data:

  • FEMA Flood Zones — any portion of the parcel in a Special Flood Hazard Area (SFHA) is either undevelopable or requires expensive mitigation. Check both the zone designation and the percentage of the parcel affected.

  • Wetlands — wetland areas are typically undevelopable and require Army Corps permitting for any disturbance. Even a small wetland on a site can significantly reduce your net developable area.

  • Slope — steep slopes add grading costs and can make portions of a site uneconomical to develop. Check slope data before running SiteAI to get a realistic yield estimate.

  • Soil conditions — poor soil (high shrink-swell clay, shallow bedrock, poor drainage) can drive up foundation and infrastructure costs significantly.

Step 4 — Enable Map Layers for a Spatial View

Turn on relevant layers from the map layers panel to see constraints in context on the map — not just as data points. The wetlands layer, FEMA flood layer, and slope layer together give you a visual picture of the developable envelope before you run SiteAI. What looks like a clean 20-acre parcel can shrink dramatically once you see the constraints overlaid.

Step 5 — Review Legal Docs and Transaction History

Open the Legal Docs tab to access recorded deeds, mortgages, and liens on the property. Transaction history shows you every recorded sale — what the parcel sold for and when. This context matters when you're negotiating: a seller who paid $800,000 three years ago has different expectations than one who inherited the land.

Step 6 — Check Utilities and Infrastructure

For states with utility layer coverage, enable water and sewer layers to see whether public utilities are adjacent to the parcel or if you'd need to extend them. Utility extension costs can be deal-killers on otherwise attractive sites, and knowing upfront lets you price it into your offer rather than discover it during engineering.

Step 7 — Run SiteAI for a Yield Estimate

Once you've confirmed the parcel passes the environmental and zoning screens, run SiteAI to get a yield estimate. SiteAI accounts for the environmental constraints you've identified — it automatically excludes wetlands, flood zones, and steep slopes from the developable area — so the lot count it returns reflects the realistic buildable portion of the site.

Step 8 — Check DevMap for Market Context

Before finalizing your underwriting, enable DevMap to see what's been built and what's coming within a 3–5 mile radius. Comparable recent projects confirm absorption. A heavy future pipeline nearby signals competition. Both inform your product, pricing, and timing assumptions.

Step 9 — Save to LRM

If the site passes your screens, save it to a project in LRM. Attach your SiteAI output, any notes from your review, and any documents you've pulled. Everything you've found stays with the deal record so your team picks up exactly where you left off — and so nothing gets lost if the deal resurfaces six months later.

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