What is due diligence in real estate? If you ask most new investors, they’ll have some sense of what due diligence is, but may be confused about what it really means. Is due diligence when you analyze your deal? Who should you be in contact with during due diligence? How long does a due diligence period usually last? And what happens if your deal turns out to be a dud in due diligence?
In reality, due diligence isn’t all that confusing. It’s simply the time that you, and your partners (if you have them), spend inspecting, double-checking, and re-analyzing the deal. The due diligence period is there for the protection of the investor, so you can use everything in your power to confirm that you truly are getting a great deal. But, before you start calling inspectors, make sure you follow some of these more granular steps that could save you a fortune in the future.
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Ashley:
This is Real Estate Rookie, episode 190. My name is Ashley Kehr, and I’m here with my co-host Tony Robinson.
Tony:
Welcome to the Real Estate Rookie podcast, where every week, twice a week, we give you the inspiration, information and amazing stories you need to hear to kickstart your real estate investing journey. My co-host, Ashley Kehr, what’s going on? What’s new in western New York these days?
Ashley:
Well, it’s per usual. My flight gets delayed and/or canceled, and so coming back from the Rookie Weekend in Denver, flight got delayed in our layover in Detroit, and I didn’t get home till about 2:00 a.m., and so, running on fumes today. The kids already missed three days of school to come to the event with me, so they had to get up at 6:30 this morning and get ready for school, and I’m sure they’ll crash tonight. But it was really nice getting to be able to have them come with me. But, yeah, we’re all…