Due Diligence is the key!! What can you do?

Over the years I have received many questions concerning due diligence.

I've always done my best to refer or just pass along names, best practice ideas, or companies and people that I deem credible. I've done this with the idea that no one can really do this for you, but I've tried to help ask pertinent questions that can spur pertinent thought, and help connect people. 

Of course. It's just opinion, but it is opinion based on feedback, digging into the market, and trying to evaluate markets, personnel, and companies. Yes, this has involved wholesalers, listing agents, brokerage firms, general contractors, real estate consultants, rehab companies, traditional lenders, hard money lenders, private lenders, property managers, real estate attorneys, and title companies. Wow, the list can go on and on, almost anything in the real estate investment space. 

I've worked with many investors from California, New York, the State of Washington, Oregon, Alabama, Tennessee, Illinois, Ohio, Indiana, Canada, Australia, Israel - all over. 

I've been chiefly concerned with Indianapolis, and Cincinnati - at one time, which I think is a fabulous market, by the way. 

Remote or out of state investors can have great difficulty in vetting vendors, sellers, suppliers, lenders, etc. 

I'm just going to pass along a few ideas on what can be done to "check out" those you may be ready to do business with. 

• Word of mouth, groups you are in. 
• BiggerPockets - because you are a part of a monstrous group of thought, practical advice, and opinion. It's a great site, and personally, I think it has revolutionized real estate investing!  Simply do a search for company names or individuals.
• Better Business Bureau - BBB Check with your target state - Just search company names or individuals, people or companies. 
• Don't stop there, search within state government.  You can not only find companies, but you can also find ownership.  Here's the search site for Indiana for example. It doesn't quite end there.  You may get individual names or names of companies.  Once you get those, you can search them on BiggerPockets, on the internet, the BBB, or wherever.  This is going to allow you to have a more "in-depth" search. 
• Something to look for might include - name changes, or dba's.  Now this doesn't always mean something bad, but it is something you want to make sure you research.
• Track record & past history.  Ask around.  You can also ask the company directly for references and a statement of past history.  You should easily be able to get 5 or 6 satisfied customers or clients.  Contact those people directly and ask about their experience.  
• Check for pending litigation.  Again, my example is Indiana.  Dockets & Filings.
• Talk to your broker or realtor about wholesalers, construction industry people, title companies etc.  

There are many ways to perform your due diligence.  Just make sure you are thorough. I've used examples from Indiana.  Each state should have the information readily available.  It's your money, and it's your PROFIT!!  

Best wishes and stay focused on due diligence and your ROI!!

Addendum:  

I have been receiving scores of messages regarding due diligence.  Here is one I pulled from my correspondence:

Thank you so much Richard,

I have recently started researching the Indy SFH market for buy and hold. I found your blogs very helpful.

I made the mistake of not doing my due deligence a few years ago when investing in Milwaukee and lost $$$ due to working with a dishonest and shady company I trusted because I was referred to them by a BP member, a do it all company! I took a few years off and am ready to invest again in 2020. Cincinnati, Indy, Tennessee and Orlando are of the markets I'm currently researching. 

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Note of mention:  

I have also received messages about providing bank account numbers and the transfer of funds.  I would be extremely careful about this practice.  In past years, I have received many messages from all over the world asking me to provide a banking account number.  I would not recommend doing this.  In addition to that, I have heard of people and know individuals who have done this - wiring funds, only to understand later that there were totally hidden fees, or the funds were not used for the intended purposes.  Be wary!  Be careful! 

Hope this helps - Ritch Bonisa