With the changes in the real estate market in recent years, it seems like “deals” are all around us…and for the most part, they are. There is no doubt that this is a great time to invest in real estate. It is definitely true that we are seeing a much higher percentage of real estate opportunities that we have not seen in many, many years. However, this is not to say that we should feel overly comfortable investing in what “appears” to be good deals and skip the due diligence process altogether.
Some of you may already know there are several major categories which must be addressed in the due diligence process when deciding between your investment options. Some of those include environmental impact studies, building inspections, lease/contract agreements, etc.
Before you get overwhelmed by the long list of items to look for in the due diligence process, take a deep breath…You do not need to be the person doing the grunt work of the due diligence process! Actually, unless you are an expert in one of the above areas, I do not recommend that you perform the due diligence tasks yourself. Rather, there are professionals in these specialties areas that you can leverage to help you to perform the due diligence needed to make sound real estate investment decisions.
As a CPA and real estate investor, I have done quite a bit of due diligence on real estate properties for my own investments and for my clients. I have to tell you that for my personal investment properties that I have invested time and resources to the due diligence process, it has definitely saved me tons of money over the years. Due diligence has allowed me to weed …read more