Real Estate Investor · Philadephia, PA · Member since 2016 · 214 posts · 36 votes
I read a lot of books and threads regarding the importance of Due Dilligence for the apartment buildings.
After the proptery is under contact,I will definitely do the detail due dilligence in person and with propterty manager or contractor.
But still I have the concern that before I put the proptery under contract,if I am in long distance or out of state,how could I do the due dilligence to do the pre-acqucition analysis (repostition chance,how much value can de added)?
We can not just make jugement based on the pictures and if the finincial data seems to have chance,right?If that is the case,we may lose our earnest money all the time.
The key is to build your local team - property management, contractors, etc. that can go look at properties for you and report back. Also, you can get a TON of information on the market by spending some time doing research online. Once you get under contract, then you buy a flight and do in person inspections, walk every unit, explore the market, etc.
Also, your deposit is typically refundable for the first 30 days, which is your due diligence period. Some people waive that, but I generally don't. All of that is completely negotiable.