Due Diligence (Property Research) is one of the, if not THE most important things that you as an investor can do that decides whether a deal goes North or South.
Traditionally, you hire a title company to do a title search on a property that you are interested in purchasing and have put an offer on. The issue is, this can be a considerable expense and if the title comes back with issues that are too costly or too clouded to make the deal worth while, you have lost that expense and time.
That is one reason to do your research prior to putting a property under contract.
Often, it is not as expensive to do a due diligence search as it is to do a complete title company search but can uncover many issues a title company may find for far less cost.
While these type of searches do not go quite as in-depth as a traditional title search, it can give you a pretty good idea of the status of the property.
These types of searches can uncover things like property boundary issues, liens, outstanding mortgages, clouded titles and many other skeletons that may be hidden in the closet.
What do these types of searches consist of? Well, it depends on who you ask. they can be as simple as a quick check of the property record or they can be much more in-depth.
As for us, and for our clients, we do a complete search of the property records, probate search including liens and mortgages, do a site visit with pictures, look at land lines and do a will/trust search.
While this is much deeper than most investors have time for, it is crucial to eliminating what could be a major problem later down the line without spending larger amounts of money to find out the same information.
Do your homework. Make sure you have covered as many bases as possible to save time, money and aggravation on all of your investment deals.
Feel free to contact us, we would be happy to work with you and help make your future deals as seamless as possible.
J&R Development
(205) 697-5183