The due diligence period.
This is an important part of real estate or business, the due diligence period.
This is where you truly learn about the asset you are buying. Remember, when buying real estate or business, you’re typically buying cash flow, or at least you should be. Completing due diligence review for your acquisitions allows you to learn the details of that property. Things such as leases, utility bills, service contracts, capital improvements completed by current ownership, property inspection, phase 1 and possibly phase 2, appraisals, survey, easements, and of course the undocumented expenses that most OMs do not show, and so much more..
Due diligence is very important and make sure that you are involved in this process so you are informed about your potential investment/acquisition. Completing the due diligence period right will help validate your underwriting assumptions, understand true cost and potential risk cash flow, and understand potential risk associated with your investment.
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