Due diligence

Due diligence

The third stage of the investment process the due diligence, this is after you’ve done a thorough analysis of the investment opportunity where you want to trust what you found, but you better verify instead and what you need to verify are any key drivers to the investment and anything that could create a worst-case scenario for the investment. So things like, are you purchasing what you think you’re purchasing, anything that you have assumed only by seeing it on paper, you better get some actual verification that what you are purchasing or what you think you’re purchasing is what you are purchasing.

The other is, are you purchasing from the actual seller who has legal title to that property?

It’s not common for investors to run into this case, but it’s happened before to scam artists who pretend to have title to something and market a property that no one’s paying attention to.

So this step of the phase is something that could take very little time to do for a rental income property or a residential home, you can easily find very experienced property assessment professionals to help you get a very confident view of the state of the property.