Whether it’s commercial or residential real estate, purchasing real property is a large investment-one you don’t want to take lightly. Ultimately, you hope to turn a profit from the property, but whether you will actually do so, how much it will be, and whether you might inherit legal problems with the land are matters you’ll need to take into account. Adequate research—or due diligence-is key to making a wise real estate investment.
Preliminary Due Diligence
Before you even begin discussing a purchase contract, you will be best served with some preliminary research. If you can access title and current owner information early, that will help you in the long run. Once the due diligence process actually starts-i.e. when the contract is signed-you will be pressed for time. Therefore, learning as much as you can about the nature and profitability of the property beforehand will help everything go much more smoothly.