What Is Due Diligence and why is it so important?

Have You seen the warnings?

Always Do YOUR DUE DILIGENCE BEFORE CLOSING ANY DEAL!

I can’t tell you how many investors try to skip out on this CRUCIAL STEP! If you don’t do your due diligence properly, then you can wind up in a lot of trouble.

Not taking the time to do your due diligence is like buying Milk without looking at the date and noticing that it’s already expired. Looks good on the outside, but once you take a wiff…. or even a sip…. hmm…. I remember when I was like 9 years old. My friends sister decided to play a little trick on me. She gave me a glass of milk and told me it was a Vanilla Milkshake. I didn’t think too much of it because it didn’t look suspicious. I mean it was white like vanilla, it was a little lumpy like a milkshake… So I didn’t think about when when I took a nice Big GULP!

Suddenly I spit all of it out. It was the most disgusting taste ever! She started laughing so hard… saying, “You couldn’t smell that it was Sour Milk? LOL” I was so mad, but when I think about it… It was pretty funny.

On a serious note though, if you screw up on your due diligence, you can lose out on alot of money or take on something you should have never got involved in.

So lets’ get to the point of all this… I’ll give you some of my input, but I’d really like you to check out the video below by Bill Bronchick…

What is Due Diligence?

It’s simply investigating the deal. Gathering all the facts that are necessary to ensure you’re deal is worth your investment/time. Being conent with your decision to move forward or back out of a deal is priceless! No need to back out because of fear. That’s just an excuse. However, if you have the facts in front of you, its easy to decide whether the deal is a lost cause or a no-brainer smart investment.

Again, what is due diligence? It can be:

Finding out how much a deal is worth
Researching the title for liens
Inspecting the property
Researching the Neighborhood
and so on…

I know it takes time, but just do it and do it throughly.

There are some resources on due diligence that I put in the resource section. I will be adding more soon, so make sure to join my investor list or subscribe via rss for updates.

Also, Here is a good video by Attorny Bill Bronchick on Due Dilligence and Wholesale Sc.ams that you absolutely Must SEE!

In the Free Real Estate Investing Course I offer to Investors when they sign up, it lays out 12 steps that you can take to do your due diligence. It really covers the basis on giving you all the facts to make a good decision. If you didn’t get it, then go ahead and sign up. If for some reason I’m offering something else at the time, then just send me an email and let me know. I’ll make sure you’re taken care of.

To Your Success,

J.lamar Ferren