Modules
So many investors rush through the due diligence process with confusion and a sense of urgency. In this video Rod shows you the importance of careful and meticulous due diligence. You want to leave no question unanswered. The point of due diligence is to determine why you should not do the deal.
You’ll first review all of the questions you should have asked and have answered by now regarding both the property; it’s financials, and the market area. Rod next explains why you need to measure demand, and how you can efficiently and effectively do it via Craigslist.
Moving forward, you’ll learn of what you need to do now that the property is actually under contract. You’ll drive the neighborhood, check school ratings, and put yourself in the shoes of the tenant.
Rod next reviews why you need to determine who your target renter is and how you can successfully do that. You’ll also learn that ensuring your unit sizes cater to the marketplace and optimal tenants for the area is a key.
You’ll next tackle some of the most important factors of due diligence, and learn how to check for employment diversity, job openings, and verify the market isn’t a “one horse” town. Rod will also review how you can determine the average home price, percentage of vacant housing, and other “need to know” information.
Lastly, you’ll learn who you need to call when in due diligence and what you need to ask the. Ranging from the chamber of commerce to contractors who work on the building, you’ll ensure nothing is missed. The variety of third party reports you may need to request is also reviewed.
In this video you’ll learn:
• Why you shouldn’t work from a broker’s pro-forma
• The questions you should have already answered
• How to determine market rents
• Questions you need to answer about the area
• How to measure demand
• Putting yourself in the tenant’s shoes
• How to determine your target renter
• How to determine if the market is stable
• How to check and see if the market has sufficient employment
• How to determine the average home price and vacant housing %
• Why you should call, and what questions you should ask, the chamber of commerce, city planning and zoning, and the county assessor
• What questions you should ask contractors who work on the property
• What you should ask tenants on the property
• The most common third party reports you may need
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