Due diligence? How & What all should I be looking for?

[Brian Price]

I keep hearing the term make sure you do your due diligence. I would assume that means no leans on the property. How do I find that info and what els should I be looking for?

[Nathan Gesner]

You should be using a REALTOR that understands investment property. They can answer these questions and do the work for you. Due diligence means you are doing ALL the research necessary to verify the investment is what you are expecting to purchase. It could be an inspection of the physical property. A review of an existing lease agreement. Rent roll for an apartment complex. Tax returns, liens, title insurance, etc.

The title insurance company will provide you with a lot of the information like evidence of ownership, liens, plat maps, easements, homeowner association, etc.

You would be wise to find a professional that can walk you through the purchase process. Buyer's agents are typically paid by the Seller, so you can use their expertise for free.