Andy Werner talks about the perils of not doing proper due diligence before you purchase a property and demonstrates the devastating consequences
PHOENIX, AZ / ACCESSWIRE / September 4, 2015 / Before investors enter into real estate deals, a proper amount of due diligence must be executed. Quality work makes for a successful transaction.
"There is no skipping steps for successful investors," says real estate investment trainer Andy Werner. "Missing even one important detail can cost thousands of dollars in profits lost."
Investors who make hurried decisions about purchasing property without putting together a complete picture, not only set themselves back financially but can also keep their businesses from moving forward by tying up assets.
"It begins with knowing what you're after in the first place," Werner cautions hasty investors. "Identifying the target market and being familiar with it will help vet the properties that don't match investor's goals. From there, information can be gathered about the property; including codes, zoning, and rehab requirements. All of these help investors come up with resale value; vital to the profit margin when the property is sold."
On April 30, 2015 Investmentnews.com published an article about the importance of performing meaningful due diligence in the technology industry. It seems much of what Werner teaches investors is also valid among tech advisors.
Author Neal Quon cites "identifying things that you specifically want" as one of 3 steps that help avoid costly mistakes. "Do not neglect to bring in your team…," is another of Quon's suggestions and one that mirrors Werner's guidance for investors.
"Always ask questions as you're learning the investment ropes. Eventually you'll learn how to analyze properties and estimate values, but until you do, rely on your team to help. This is why choosing the right team members as you're building your business is so important."
In every industry, rules and regulations change. In the real estate industry, there are different rules from county to county, state to state. Performing due diligence requires staying on top of what's current. It will save you from making costly mistakes and prevent you from wasting precious time. Know what is expected of you and required for resale of your investment property.
Santa Clarita, CA was the site of a VERY costly error with a commercial property. Investors pooled their money and spent half a million-dollars renovating a banquet room in a slightly distressed building. The venue accommodated 500 plus people - with two bars, a kitchen and a dance floor.
After holding a special event to show the property off to the business community, event reservations began pouring in. That is, until it was discovered the building was not up to code. The kibosh was then put on the venture and the ballroom with its crystal chandelier was forced to close its doors for good.
Expensive mistake? Worse. More like an irreversible blunder: the expensive upgrades were completed for nothing. The building could not be resold because of the vast number of code violations.
Performing due diligence can be tedious - okay, BORING. But the value of taking your time and doing it right the first time cannot be emphasized enough. Learn more about Andy Werner and real estate investing by visiting http://www.streetwisepropertyinvesting.com/.
Streetwise Property Investing
Phoenix, Arizona
United States
(800) 792-5078
[email protected]
SOURCE: Streetwise Property Investing