Real Estate Diligence 101: Avoid Financial Disaster - EP.10

You find a real estate property you like, you sign it, you wrap
up the deal under LOI, sign the purchase agreement, and then you
get into diligence — which is what we’re going to be talking
about on today’s show.


Diligence is that 30-60 day period after you sign the purchase
agreement and before you get into the official closing documents.
In this episode, we highlight everything that happens during that
period, such as; the title, zoning analysis, building permits,
surveying the property, environmental analysis, the appraisal,
deeper market research, property condition report, financial due
diligence, and the lease review.


This is real estate due diligence 101!


Key Takeaways:


[:13] About today’s episode.


[:48] How long it takes to go through the entire diligence
process.


[1:34] Issues that can arise, starting with the title and title
insurance.


[5:50] What is zoning analysis? Why is it important?


[6:50] Where are you completing the title, title insurance,
zoning analysis, and building permits?


[9:18] About the survey portion of the property and its purpose.


[12:00] What information does the surveyor give you on the
property?


[13:53] What is involved in the environmental analysis?


[19:22] All about the appraisal; how much it is, who requires it,
and how it can kill deals.


[22:40] Some of the deeper market research that is done to make
sure that you’re getting a reasonable value for the property.


[23:45] Can this deeper market research also lead to killing
deals?


[24:34] What happens during the property condition report.


[28:04] The process of financial due diligence.


[32:25] All about the lease review.


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