Due diligence before closing

6 Replies

Hey, I just got a 2 unit multi-family property under contract. It is not the best deal so I want to take this time to figure out how to negotiate the sale price. the attorney is sorting through all the title stuff, the house is inspected, a contractor is currently working on pricing the renovation, and the mortgage is pre-approved, what other points of due diligence should I be focused on at this time?

Use the inspection to negotiate the sellers price.

Example, so there damage on the roof, water heater, etc= this will cost me $X. let's talk about this. 

Request a FOIL from 

Poughkeepsie Police Dept and/or 911 calls, 

Poughkeepsie Bldg Dept 

County Health Dept  

a roofer is a good idea, house inspectors are not always doing a great job of inspecting the roof

and very important verify income and expenses T12 & T3

While all this stuff is fine to get during due diligence, it's not the best strategy to collect it for the purpose of re-trading on the price AFTER you're in contract.  It almost sounds like you just plan to START negotiating now that you're in contract.  Perhaps I'm reading that wrong because of how you worded it, but if that's the case, not a good way to do business.

Just my two cents.

After meeting Stephan at a Local meetup i don’t get the impression he is trying renegotiate but more that he is new, like we all were Once and doesn’t want to make any costly mistakes.   I could be wrong but that is the impression I got. 

I appreciate all the replies. I actually did negotiate the sale price before going into contract, but I underestimated the cost of the repairs. At this point I have an estimate of the renovation cost from a licensed contractor and its more than what the property will appraise for. Perhaps I should've did more homework on approximating a rehab. In any event, this is the point I'm at now, I don't want to lose this contract but unless I can re-negotiate the sale price that will be the smartest decision.

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