What are the most common mistakes you see novice Investors make?
A: The list that we're talking about looks like this:
- Falling in love with the property
- Always using the best case scenario
- Not performing solid due diligence
- Not planning
- Forgetting to consider how this deal helps your other financial objectives (the big picture)
This week, it's time to talk about not performing solid due diligence.
Here's the deal - if you don't' perform a solid, thorough due diligence, it's going to cost you. It's going to be a cost, and it may be a 30 year one. Do you want to take that risk?
When performing due diligence, here's the easiest rule: Question everything. That means if the owner is paying utilities, find out through the utility company how much he's spending. Not the Realtor, and not the Owner.
Check and see how much taxes were actually paid. Ask for copies of leases. In the event it's owned by an LLC or any other corporation, ask for a tax return. Check with the County about any zoning violations. Talk to the tenants if you can about the condition of the property and any other issues.
These are just a few that typically get overlooked. Are there any due diligence items that you're aware of that are easily overlooked?
Just remember the rule - question everything.
Clients always ask me: Are you on the web?
See for yourself.
Tim McIntyre, GRI, Ellicott City Realtor, Catonsville Realtor
Helping Clients Buy, Sell and Invest in
Howard County, Carroll County and Baltimore County
for more than 25 years.
tmcintyre@cbmove.com 410-480-3555
www.timsellshomes.com
