Path to Purchase Step 11

Performing Due Diligence

When you’re buying a new car, you take a look under the hood... and under the car itself. You may even take it to a mechanic for their opinion. That’s due diligence: Making sure that the owner is correctly representing the vehicle.


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What is Due Diligence?

Due Diligence & Closing

Real estate investors have to perform due diligence to make sure the property they’re buying is in the right shape and has the correct financial metrics. This could include obtaining things like rent rolls, tax documentation, insurance history, and maintenance history. As a buy-and-hold landlord, you need to make sure that there is enough skin in the game so when you’re paid a rent check, it isn’t all going to expenses.


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