You can do everything right on six consecutive deals but if you are sloppy with the due diligence on the seventh, the consequences could be severe. As basic as it sounds, it is important to always keep the flow of profits moving in the right direction. Making a small profit on a deal is always better than taking a loss. The most common cause for getting involved in a bad deal is often sloppy due diligence.
Due diligence must be considered a necessary evil. You need to have the same systems and routine on every deal you look at. The minute you become lazy, or sloppy, you increase the chances of overlooking a glaring item that could end up making the difference between success and disappointment. Never get involved in a bad property simply because you didn’t put the work in. Here are five due diligence areas you should review before your next prospective deal.
By treating every prospective deal and property the same you reduce the chances of something slipping through the cracks. At a minimum, always review these five areas before getting involved with your next property.