Due diligence?

4 Replies

When you do your due diligence on a property, what exactly do you DO? I am trying to create step-by-step instructions from beginning to end for how to actually wholesale a house and I'm stuck on this little tidbit.

The more detailed you are, the more appreciative I will be! 

oh, that's exactly what I wanted to ask...none experience of wholesale though..

but surely there is difference between different type of your property.

generally I think about inspection, expenses(utility, tax, insurance, maintenance,etc) record, price history, appraisal, title research...for apt: rent roll, property management, tenants status, lease contract...

something else to add? 

Originally posted by @Belinda D. :

Here are a couple of links that answer your question. If you want more details, then key in your topic in the "search" tab. 

http://www.biggerpockets.com/forums/88/topics/1499...

http://www.biggerpockets.com/forums/93/topics/8228...

Hope this helps.

 Thank you. I did type my question into the search key before I asked the question however I mostly found answers pertaining to REA's not wholesalers. 

Property Appraiser website

Title search

Call City/County for unrecorded liens, such as utility liens

Walk the property. Talk with neighbors.

Hire a professional property inspector, unless you know construction.

Look at comparative values, such as MLS, Zillow, Eppraisal, Trulia, others.

Let Seller make the first offer.

Practice dropping your jaw and rolling your eyes before a mirror. LOL

Practice saying, "Wha-a-at"? LOL

Make sure Seller is truly motivated. Never deal with non-motivated sellers.

Don't offer more than 50% or 60% of value-even less, if you can. I buy most of my properties at a level that allows me to SELL for around 50% to 60%. You make your money when you buy. 

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