The Building is CONDEMNED!
Due Diligence matters. A lot.
You never want to get that notice.
A recent deal we were under contract on we terminated, Why?
We knew that the concrete had extensive cracking and spidering, particularly on structural walkways.
Additionally, this is a serious issue that poses health and safety risks to residents.
We consulted with local experts and learned that the cost to repair the concrete was over $120K for one section of the building, and the property had 6 sections needing corrected.
Cost prohibitive.
We made the painful decision to terminate due to repair costs.
The investment became financially unviable for our investors.
Fast forward 18 months later, and the building was CONDEMNED by the city.
This experience reinforced a valuable lesson: Due Diligence is crucial in identifying potential problems and risks in a property. It is always better to err on the side of caution and thoroughly investigate any red flags before making a significant investment.
To help investors better understand the importance of due diligence, we have created a checklist that provides a comprehensive guide to how we conduct our process. This guide includes tips on how to conduct effective due diligence, what to look for when evaluating a property, and common mistakes to avoid. Get it here.
