Posted by RR Smith on February 03, 2000 at 19:06:28:
Due Dil. is the homework that you would “normally” do in ANY investment to make sure that is a safe(more safe)place to put your funds. It is used often in post mortems of insurance underwriting, mort. underwriting, and other places where the amount of risk can be reduced by doing your homework. …One of the best books of 99 was Against the Gods: The Remarkable story of Risk by Peter L. Bernstein it is about this very subject…but I digress
What is “Due Diligence”? - Posted by Amy(DLTX)
Posted by Amy(DLTX) on February 03, 2000 at 17:52:28:
Hope I spelled that correctly. My eyes & memory sometimes plays tricks on me. Sorry!
I think I found a my first deal. I have been asked to do a “Due Dilligence”, of which I know not the meaning.
Please help!!
God Bless You For All Your Support.
Amy
Dallas, Texas
Papersavvy@worldnet.att.net
Re: What is “Due Diligence”? - Posted by Miloneco
Posted by Miloneco on February 03, 2000 at 19:40:31:
Congrats Ammy,
On getting your feet wet in real estate.What people mean when talking od due diligence is research.Research is key.Do you know your comps?a solid fix-up nimber? End user? Type of financing user will be able to obtain.Good luck John
Re: What is “Due Diligence”? - Posted by phil fernandez
Posted by phil fernandez on February 03, 2000 at 18:24:25:
Amy,
Due diligence to me is the cornerstone to investing in real estate. Due diligence is finding out what the income and actual expenses are on a property. It’s checking with the city zoning administraters. It’s checking with other landlord’s about what they can get for rent and what they can’t get for rent. It’s checking what the vacancy factor is in your area. It’s finding out what similar properties are selling for. It’s what financing is available in your area. It’;s what the neigborhood is like. It’s what the local economy is like. It’s what the buyers in your area are most looking for in a house to buy.
It’s really the research that you have to do and talking with the right people in the local area that you have to do to determine if a property would be the right investment or not.
Kinda like doing your homework.