The due diligence period during a real estate deal is the time for the buyer to fully investigate the property to decide whether or not it is a viable deal. Knowing how to invest in means knowing where to go to find the information that will help you complete the due diligence process.

Home Inspector

A local home or building inspector is the first place you want to start in this process. Your main goal is to make sure that the property is up to code and to identify any problems that you may want the seller to address before closing.

New real estate investors who do not know how to invest in foreclosures or other distressed properties should seek the advice of a licensed inspector during the due diligence period. Your home inspector will know what to look for during the inspection and will give you peace of mind that you’re buying a quality property.

Public Records

Before you buy a financially distressed property, do a thorough title search. Check federal court records and state controllers for tax liens or other claims against the property, district court for unreleased abstracts about bankruptcy.  And ask the neighbors!  Sometimes they’ll be able to tell you all you want to know and more.

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