When comparing real estate purchases or zeroing in on a particular purchase due diligence is of the utmost importance to your efforts. Owning real estate has risks. You may accept higher or lower risk levels but you need to know the facts in order to weigh the risk/reward opportunity. Obviously if two potential purchases have identical reward opportunities but one has a significantly higher risk exposure you want the more conservative property.


Be an informed and educated! Pick a company that helps you work through this process.


Over the years we took the time to obtain, review and understand many different respected companies' due diligence checklists and guidelines. 

 

Some of the broad areas that might be covered include:

  • Operating History
  • Expenses
  • Financing
  • Tax issues
  • Market Study
  • Demographics
  • Leases/tenants
  • Appraisals
  • Building/property condition
  • Capital Improvements (Past, Present and Future)
  • Legal
  • Underwriting
  • Sponsor (if a TIC)
  • Title
  • Guaranties and warranties