Posted by SCook85 on January 13, 2001 at 09:19:02:
Vince,
I personally do very little due diligence. But I work with vacant properties and fixer uppers.
Most of my due diligence I guess was done in the early days. What is important to me are values. I pretty much know the values in the areas that I buy in at this point. I know the costs to fix, I know somewhat close what the taxes are going to be, etc… Outside of that I really don’t need to know much more.
I know this gets more complicated with other types of deals, but for me it is very simple.
It’s been a busy week. I’ve been talking with lenders, sellers, investors. It’s been very educational. And the deal I’m working in the midwest is coming together nicely.
I have a question for anyone who has answers. The more answers to this question the better for many of us I think.
When you are looking to buy a property, after you tie up the deal, what items do you require during your due diligence process? Could you list yours in your reply to this post?
An example of a Due Diligence item would be a Termite Inspection. Another item might be calling the planning commission. I’m sure there are many different techniques and practices among the people posting here. Please be as detailed as possible so that we can learn from a pro like yourself. I’ve noticed that this is not covered in many of the courses and since this is real world stuff, I thought I’d get some real world Due Diligence techniques.
I’m not looking for “how” to do it as much as how “you” do it. I’m more interested in generating creativity and ideas. Some, no doubt go deeper than others in this process and would give an even more detailed list of items.
So here are the scenarios:
You find a property that you want to buy and you’ve spoken with the owner and inked a deal. What Due Diligence steps do you take from this point forward? How do you go about completing those steps? What are the costs involved, etc.?
How about with Multi’s and Commercial Properties.
I find that much of the educational material I’ve gone through seem to be a bit light on the nitty-gritty details so any information would be greatly appreciated.