Ep #46: The 4 steps to Performing Successful Due Diligence on an Income Producing Commercial Property

Due to a large amount of emails over the past few months from our listeners who have had questions regarding current commercial and multi-family deals they're working on and how to effectively determine if they should move forward or pass I thought it would be appropriate to cover the topic of due diligence and it how it plays into the acquisition process and how proper due diligence can be the difference of identifying and moving forward on a great deal or being able to avoid a lemon. In being a real estate investor you must acknowledge the risks associated with purchasing income producing property; however, you must also devise a solid plan for identifying and minimizing those risks or you will be the guy that is struck with analysis paralysis that looks at everything but buys nothing. The idea of the “perfect deal” that has zero risk doesn’t exist so you might as well stop wasting your time looking for it. In fact, the more problems associated with a particular property typically result in more reward per ones efforts – I said typically but not always! We all make mistakes being a real estate investor, but if you do your homework and do a thorough job during the due diligence process then you’ll do just fine             In this show today you’re going to learn: §  What due diligence is and why it’s some important in the acquisition process §  How to effectively evaluate your competition during the due diligence process §  Why sellers are liars until proven otherwise and why you need to verify every possible thing §  How skipping environmental inspections on a property can put you in financial ruins   §  and much more