$10,000 Investor Due Diligence Checklist

Henry ClarkPro Member

OP

Developer · Member since 2020 · 4k+ posts · 4k+ votes

3mo

@James Wise

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Mike Kirby

Rental Property Investor · New Braunfels, TX · Member since 2021 · 288 posts · 255 votes

3mo

Quote from @Henry Clark:

Folks this is a followup to another post. I’ll ask this in a couple ways.

How many of you would pay $10,000 for a vetted due diligence checklist for your type of REI strategy. Along with a $500 two hour call to go over the nuances?

How many of you have lost $50,000; $100,000; $500,000 and wish you had gone thru a Vetted due diligence checklist with support?

How many of you knowing what you know now. Wish you had spent $10,000 to speed up your REI investing? And would say you easily lost or fell behind $10,000 to date.

Example: There are over 1,000 investors out there who invested $50,000 or more and will lose it all. They and their GP forgot the lesson we all learned in the housing crisis. Do financing that matches your investment window. That is just one item on a due diligence list and they all missed it.

Please give your input. Yeh or Nay to $10,000. If Nay please explain what it would take for you to pay $10,000 for a vetted Due Diligence process for your type of REI strategy.

Thank you.

Henry, I value your posts but there is no way in the world I would pay $10,000 for a check list. I moved to Texas when I was 21 in 1982 with $300 cash and a ten year old car. I’ve lived below my means and now own enough rental properties that my grandkids can keep growing the family business or sell it some day and do their own thing.

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Henry ClarkPro Member
OP
Developer · Member since 2020 · 4k+ posts · 4k+ votes
3mo
Quote from @Mike Kirby:

Quote from @Henry Clark:

Folks this is a followup to another post. I’ll ask this in a couple ways.
How many of you would pay $10,000 for a vetted due diligence checklist for your type of REI strategy. Along with a $500 two hour call to go over the nuances?
How many of you have lost $50,000; $100,000; $500,000 and wish you had gone thru a Vetted due diligence checklist with support?

How many of you knowing what you know now. Wish you had spent $10,000 to speed up your REI investing? And would say you easily lost or fell behind $10,000 to date.

Example: There are over 1,000 investors out there who invested $50,000 or more and will lose it all. They and their GP forgot the lesson we all learned in the housing crisis. Do financing that matches your investment window. That is just one item on a due diligence list and they all missed it.
Please give your input. Yeh or Nay to $10,000. If Nay please explain what it would take for you to pay $10,000 for a vetted Due Diligence process for your type of REI strategy.

Thank you.

Henry, I value your posts but there is no way in the world I would pay $10,000 for a check list. I moved to Texas when I was 21 in 1982 with $300 cash and a ten year old car. I’ve lived below my means and now own enough rental properties that my grandkids can keep growing the family business or sell it some day and do their own thing.
You’re looking from your current situation.

Peculiar though. In 1982 I also had $300, a truck I paid $100 for and a bag of clothes.

Read the post. Now start from $10,000 today and you have never done REI investing.

Or start with your experience to date if you were to start fresh would you pay $10,000 plus 2 hours with the expert to understand it?
Would you have scaled faster? Failed less? Or acted in more deals quicker in your area of investing?
I personally would pay $10,000 without thinking. Knowing what I know today that I didn’t know when I started.
This post is originating from an LP post on a failed syndication deal.
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JD MartinBusiness Member

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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes

3mo

I wouldn't do it, because if I needed to do it that would mean I didn't have enough knowledge or experience to even properly determine whether the individual I was buying it from was even worth $10 or was giving me information worth $10k or more. I would have to take other people's word for it.

I suppose if there was theoretically some type of individual vetting service that could determine the value of information you were providing, that might make some difference, but then who vets the vetters?

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Chris SeveneyBusiness Member

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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

3mo

I'm going to be the guy who says what everyone's thinking: No one should pay $10,000 for a due diligence checklist.

Here's why, and I say this as someone who has acquired hundreds of notes and real estate assets:

A checklist is a commodity. You can find solid DD frameworks for free on BiggerPockets, at your local REIA, or by spending 30 minutes talking to someone who has actually done deals in your asset class. The checklist itself is not the value.

What actually costs you money is not having the judgment to know which items on that checklist matter most for your specific deal, market, and strategy. That judgment comes from experience, mentorship, and surrounding yourself with people who have skin in the game.

The example in the original post is a perfect illustration. "Match your financing to your investment window" isn't some secret insight buried in a $10,000 document. That lesson was plastered everywhere after 2008 and more recently in the MF space. The thousands of investors and sponsors who missed it didn't miss it because they lacked a checklist. They missed it because they were chasing yield and no one in their circle was willing to tell them the hard truth.

For me, a 10,000 for a checklist with a call attached? That's a marketing package, not a due diligence solution.

The best DD isn't a document. It's the person you can call at 9pm when the deal stops making sense.

I would not pay anyone $10,000 for a checklist.

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Denise SuppleeBusiness Member

Realtor · Willow Grove, PA · Member since 2017 · 962 posts · 636 votes

3mo

For me, it would depend on who's providing the checklist and the track record behind it. Good due diligence is incredibly valuable, but I'd want confidence that the process has been tested across many real-world deals. One bad investment can certainly cost far more than $10,000.

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G. Brian DavisPro Member

Investor · Hatboro, PA · Member since 2016 · 2k+ posts · 842 votes

3mo

To me, the checklist itself wouldn't be worth $10K. The value would be in the person behind it. If someone had a proven track record of helping investors avoid six-figure mistakes and could walk me through applying that due diligence to real deals, then I'd consider it. Information is cheap. Good judgment and experience are not.

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Amit PrasadBusiness Member

Investor · Member since 2026 · 20 posts · 14 votes

3mo

No checklist is worth 10k, there has to be more value than that. $500-1000 maybe at best but it also has to be someone who has the reputation for it.

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Don KonipolBusiness Member

Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes

3mo

Quote from @Henry Clark:

Folks this is a followup to another post. I’ll ask this in a couple ways.

How many of you would pay $10,000 for a vetted due diligence checklist for your type of REI strategy. Along with a $500 two hour call to go over the nuances?

How many of you have lost $50,000; $100,000; $500,000 and wish you had gone thru a Vetted due diligence checklist with support?

How many of you knowing what you know now. Wish you had spent $10,000 to speed up your REI investing? And would say you easily lost or fell behind $10,000 to date.

Example: There are over 1,000 investors out there who invested $50,000 or more and will lose it all. They and their GP forgot the lesson we all learned in the housing crisis. Do financing that matches your investment window. That is just one item on a due diligence list and they all missed it.

Please give your input. Yeh or Nay to $10,000. If Nay please explain what it would take for you to pay $10,000 for a vetted Due Diligence process for your type of REI strategy.

Thank you.

I wouldn’t pay more than $8500 for it.

Seriously though, if it was part of a consulting service offered by Henry, I’d do it. BUT, Henry (HIMSELF) would have to agree to walk me thru a minimum number of investment analysis.

It all about how it’s packaged. 8 or so years ago a major player in the real estate crowdfunding field essentially paid me $195,000.00 to teach them how to analysis private commercial mortgage loans, so they could move from strictly residential loans to commercial. They then proceeded to totally ignore my advice. You can’t teach stupid.

Btw, Henry’s expertise in self storage is worth far, far more than $10k.

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Henry ClarkPro Member
OP
Developer · Member since 2020 · 4k+ posts · 4k+ votes
3mo
Quote from @Don Konipol:

Quote from @Henry Clark:

Folks this is a followup to another post. I’ll ask this in a couple ways.
How many of you would pay $10,000 for a vetted due diligence checklist for your type of REI strategy. Along with a $500 two hour call to go over the nuances?
How many of you have lost $50,000; $100,000; $500,000 and wish you had gone thru a Vetted due diligence checklist with support?

How many of you knowing what you know now. Wish you had spent $10,000 to speed up your REI investing? And would say you easily lost or fell behind $10,000 to date.

Example: There are over 1,000 investors out there who invested $50,000 or more and will lose it all. They and their GP forgot the lesson we all learned in the housing crisis. Do financing that matches your investment window. That is just one item on a due diligence list and they all missed it.
Please give your input. Yeh or Nay to $10,000. If Nay please explain what it would take for you to pay $10,000 for a vetted Due Diligence process for your type of REI strategy.

Thank you.

I wouldn’t pay more than $8500 for it.

Seriously though, if it was part of a consulting service offered by Henry, I’d do it. BUT, Henry (HIMSELF) would have to agree to walk me thru a minimum number of investment analysis.

It all about how it’s packaged. 8 or so years ago a major player in the real estate crowdfunding field essentially paid me $195,000.00 to teach them how to analysis private commercial mortgage loans, so they could move from strictly residential loans to commercial. They then proceeded to totally ignore my advice. You can’t teach stupid.
Btw, Henry’s expertise in self storage is worth far, far more than $10k.

Thanks Don. Actually this for the guy in the other post the $10,000. He looks like he is losing $50,000 minimum on an LP position.
In that post I said for me to teach Self Storage I would charge $1,000,000. BUT they only paid after the $1,000,000 was created, only after 5 years, and if anything less than the $1,000,000 was created they didn’t owe a dime. They would have earned $3,000,000 or more and then pay me. Plus they would know the Secret Sauce formula.
Actually I’m doing another Self Storage post Deal 20 for my brother who is in Italy and will move back within 2 years. Just north of you near Dallas. That deal within 1 to 2 years will create over $1,000,000 for him. The other deal I helped him with south of San Antonio he earned $850,000 in 13 months on a small location. Plus he got his investment back.
I actually would never teach anyone. Same effort I would make all the money. Funding I can get on our own. Our one bank has a lending cap rate of $30mm so they could cover me for the first 5 years of scaling. Then would add another bank.
Glad we are retired though. Kind of.
Start small and Make Your Big Mistakes Early.
Disced yesterday. Plow rows today. Plant our last Teak seedlings in the new 89 acre location in Belize. Diversification got to love it. Especially during the winter in Iowa.
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Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
3mo
Quote from @Henry Clark:

Quote from @Don Konipol:

Quote from @Henry Clark:

Folks this is a followup to another post. I’ll ask this in a couple ways.
How many of you would pay $10,000 for a vetted due diligence checklist for your type of REI strategy. Along with a $500 two hour call to go over the nuances?
How many of you have lost $50,000; $100,000; $500,000 and wish you had gone thru a Vetted due diligence checklist with support?

How many of you knowing what you know now. Wish you had spent $10,000 to speed up your REI investing? And would say you easily lost or fell behind $10,000 to date.

Example: There are over 1,000 investors out there who invested $50,000 or more and will lose it all. They and their GP forgot the lesson we all learned in the housing crisis. Do financing that matches your investment window. That is just one item on a due diligence list and they all missed it.
Please give your input. Yeh or Nay to $10,000. If Nay please explain what it would take for you to pay $10,000 for a vetted Due Diligence process for your type of REI strategy.

Thank you.

I wouldn’t pay more than $8500 for it.

Seriously though, if it was part of a consulting service offered by Henry, I’d do it. BUT, Henry (HIMSELF) would have to agree to walk me thru a minimum number of investment analysis.

It all about how it’s packaged. 8 or so years ago a major player in the real estate crowdfunding field essentially paid me $195,000.00 to teach them how to analysis private commercial mortgage loans, so they could move from strictly residential loans to commercial. They then proceeded to totally ignore my advice. You can’t teach stupid.
Btw, Henry’s expertise in self storage is worth far, far more than $10k.

Thanks Don. Actually this for the guy in the other post the $10,000. He looks like he is losing $50,000 minimum on an LP position.
In that post I said for me to teach Self Storage I would charge $1,000,000. BUT they only paid after the $1,000,000 was created, only after 5 years, and if anything less than the $1,000,000 was created they didn’t owe a dime. They would have earned $3,000,000 or more and then pay me. Plus they would know the Secret Sauce formula.
Actually I’m doing another Self Storage post Deal 20 for my brother who is in Italy and will move back within 2 years. Just north of you near Dallas. That deal within 1 to 2 years will create over $1,000,000 for him. The other deal I helped him with south of San Antonio he earned $850,000 in 13 months on a small location. Plus he got his investment back.
I actually would never teach anyone. Same effort I would make all the money. Funding I can get on our own. Our one bank has a lending cap rate of $30mm so they could cover me for the first 5 years of scaling. Then would add another bank.
Glad we are retired though. Kind of.
Start small and Make Your Big Mistakes Early.
Disced yesterday. Plow rows today. Plant our last Teak seedlings in the new 89 acre location in Belize. Diversification got to love it. Especially during the winter in Iowa.
The investors who are actually successful, rarely agree to sell their knowledge and expertise. I only did once, and only because $200,000 for 15 - 20 hours work was just too good to pass up.

So that should tell people what the knowledge sold by most gurus is worth - nothing or even less.
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$10,000 Investor Due Diligence Checklist

$10,000 Investor Due Diligence Checklist

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