Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Commercial Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 16 years ago on . Most recent reply

User Stats

11
Posts
1
Votes
N/A N/A
  • Real Estate Investor
  • vineland, NJ
1
Votes |
11
Posts

Due Diligence Cost

N/A N/A
  • Real Estate Investor
  • vineland, NJ
Posted

Hi, i was wondering how do you other investors come up with the funds to pay for your due diligence cost (soft cost), which on commercial real estate deals can be substantial.

the reason why i ask this question is because most banks that will finance your deals will not pay for your due diligence cost or will let you roll it over into your loan (i guess they want you to come out of pocket for these cost).

i know about private funds, but right the money the private lenders lend go straight to the closing table and not in your hand or acct to pay for due diligence cost which are due right away

or is it simply just getting an equity investor to pay for these cost (which the banks won't mine, because its not adding any more debt to the property). or it is getting all due diligence cost rolled into the closing (make them wait for their payment) down payment cost and then using your other funds to pay them off.

i just wanted to know how all this works, because i always hear people saying they bought this and that with no out of pocket money, but i figured if your going through the due diligence process and something doesn't check out correctly and you don't purchase, somebobdy is gonna be outta money, right.

Loading replies...