Chapter 6

Due Diligence: Doing Your Homework

In This Chapter

bullet Getting the lowdown on due diligence

bullet Understanding what needs to be done

bullet Using checklists to be successful in due diligence

bullet Going through the due diligence process

bullet Making your way to the closing table

Okay, so you’ve a signed contract — now what? Well, we highly suggest that you get busy figuring out if the property is a good, bad, or average deal and whether you want to buy it. A signed contract usually contains a clause, called a due diligence clause, that allows you to check out the property for free for a period of time, usually 30 to 60 days. Let’s face it, sometimes sellers and owners stretch the truth about their properties when it comes down to how much money they bring in, their monthly expenses, their prior repairs, the future repairs needed, and how well the properties have been operating. Luckily, the due diligence clause allows you the chance to do your homework and discover the nitty-gritty on a property ...

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