Posted by Tony Colella on May 08, 2007 at 08:28:13:
DD likely stands for Due Diligence which in essence means doing the homework necessary to ensure that you can operate the property the way you want to, making sure to get the true, accurate income and expense figures (seller’s never give you the real numbers), making sure the infrastructure is sound and that the zoning etc. will allow you do to the kind of uprgades you want.
It is basically CYA (Covering Your ASSets) in advance of buying the property so there are no suprises that hurt you.
Hope this helps.