Due Diligence (Houston)

[Angdronell Durant]

I am wanting to purchase my first property in Houston, but I want to make sure it is a profitable deal. What exactly are the correct steps to do my proper "due diligence"?

[Bob Okenwa]

@Angdronell Durant

Here's the typical process of getting a deal done:

1. Find a Prospective Rehab Property
2. Perform Quick Analysis to Determine if #'s Make Sense to Walk the Property
3. Perform Initial Property Walkthrough & Inspection
4. Create a Detailed Estimate of Repairs
5. Analyze the Maximum Purchase Price you should offer for the Property
6. Make an Offer / Negotiate Offer with Seller

After Deal Acceptance

1. Develop detailed Scope of Work for contractor proposals
2. Establish Inspection/Contractor Walkthrough Date - Try to have everyone show up on one date & time if possible
3. Solicit contractor proposals
4. Receive contractor proposals
5. Make go/no-go decision to purchase the property

Of course you need to make sure the ARV is correct as everything is pretty much based on this number and this is in conjunction with step 5 in the 1st list.