Due Diligence: A Cornerstone to Success in Real Estate Investing
By Steve Homer
(The HBH Group (Keller Williams affiliate))
Back in my corporate days in the dot com industry, there was always a great amount of due diligence taking place. We were always looking at acquiring competitors and they were always looking at acquiring us. And if you were going to spend $50MM of someone else's money purchasing another company, you'd better make very sure that you have done all your homework and you know what you are getting for the venture capital that you are about to spend. I was thinking about this very issue today as I pondered how to approach this article. Real estate investors tend to not do a very thorough job at due diligence in the early stages of property acquisition and my belief is that it causes the high rates of foreclosure that happen to junior investors. To coin an old phrase, "You have to kiss a ...