Wow, this crazy real estate journey has taught me a lot! And let me tell you, doing your research is just as important as wearing sunscreen at the beach.
When you buy or sell real estate, you have to do a lot of study to figure out how much the property is worth and how it looks. This process helps find any problems or risks that might affect the business.
Now, don't get your financial due diligence and property review mixed up. There are two peas in a pod, but they taste different. When you do your financial due diligence, you look at the property's financial records, leases, contracts, and other related papers. Physical property inspection, on the other hand, includes checking out the property's state, walking through each unit, and figuring out what repairs or renovations need to be done.
It's smart to get professional help to make sure that the assessments you make during due research are correct. Hiring skilled professionals, like CPAs or specialized consultants, can help you make accurate financial statements and give you useful advice. Their knowledge makes it easier to get a full picture of the property's financial health.
It seems like I pushed a bit, but not as much as I should have. We should have thought of some other ideas. We might have thought about getting a CPA or someone else to make the P&L from his records or something else that the lender would accept.
It's important to keep your feelings in check during due diligence. Mistakes that cost a lot of money can happen when you're feeling emotional. From my own experience, I know that letting personal biases or bad feelings about the seller or property affect my decision-making can cause me to miss out on chances.
My first mistake was being too set in my ways and not being able to think outside the box. We ran into a difficult seller in one deal who wouldn't give us the information we needed for due research. We backed out of the deal instead of looking for other options. The chance was missed, though, but an investor who was more creative and open to chaos took it and made it a home run.
When I thought about what happened, I understood how important it is to think outside the box and push yourself. Chaos and difficulties can sometimes lead to special chances to earn big prizes. We can get past problems and find hidden possibilities if we keep an open mind and look for other ways to do things.
Real estate investing is a people business, so remember that. Getting to know buyers and earning their trust can make a big difference. Actively listening and asking the right questions are important bargaining skills that can help you figure out what the seller wants and why.
