Whether you are purchasing commercial or residential investment property, overlooking your responsibility to complete preliminary due diligence can be disastrous. That’s where we come in. We handle the process for you, and you get to rest assured that everything is done professionally and thoroughly, and that any issues are immediately brought to your attention and dealt with according to current laws and regulations.
What is it?
Basically, the due diligence process ensures that you avoid any common pitfalls during your real estate transactions.
Some of the most basic pitfalls have to do with making too many assumptions, either due to lack of information, or based on past experience. Every real estate transaction is different.
In the case of foreclosures, you need to understand exactly who is selling the home, why they are selling it, and what condition it is in. You’ve got to understand the market value of the home to make sure you don’t overbid. Even a foreclosed home needs to be inspected. Just because a property is sold “as is” by a lender, you should not skip the inspection. If you find something unacceptable during the process, and the lender refuses to fix it, you can walk away and you’re only out the cost of the inspection.
Sometimes, with homes or commercial properties that have been passed down in families or sold multiple times, it can be unclear who the legal owner is. Never proceed without clarity on the title. A title search, including uncovering any liens, is a critical part of the process.
What are you looking for?
Some of the things you will uncover during the process include:
- Tenant history and current status
- How the property is actually being used, and what zoning limitations there are
- Copies of seller inspections
- Copies of surveys
- Pending legal actions
- Any special assessments or environmental assessments
- Unpaid tax bills
- Construction warranties
- Appraisals, and appraisal history
- Insurance records
This is not a time for DIY
Unless you are an expert, you don’t want to try to handle all of this yourself. Hiring experts like our team here at Allegiance Abstract Services Inc., is the best way to make sure you’re covered, and that your investment turns out to be as profitable as you expect.
Think about everything that is involved. If you’ve got a dozen or so years of experience in each area, you’re probably qualified to proceed on your own. If not, please hire a professional and avoid possible financial losses, legal battles, or worse.
- Title Reviews
- Property Surveys
- Zoning Certification and Compliance
- Property Inspections
- Environmental Assessments and Inspections
- Lease Legal Review
- Loan and Lien Search and Assessment
Sound a little daunting?
It should sound overwhelming. That’s why we do what we do. We’re here to help make sure your real estate investment process turns out well, even if it means you need to abandon a property and move on to one that is better suited to your needs and goals. Trust us, as disappointing as that prospect sounds, it beats the heck out of buying the wrong property.
Give us a call. Let’s talk about your plans and how we can help.