April 18, 2024

Jocuri

Mad about real estate

How to Perform Commercial Property Due Diligence in a Down Market (An Investors Guide) Part Four

4.Team

Doctors, like investors, rely on simple formulas to protect their clients.  If a diagnosis is made without consultation it can lead to malpractice. In the same way, a property search during due diligence relies on consultation with others before a buy decision is made.

When performing due diligence, you will not be diagnosing statistics by yourself. You can rely on Field Representatives who look out for your interests in examining a potential acquisition. Your Mortgage Broker, Commercial Real Estate Broker and even your Property Manager can help:

  • Use these members of your team to complete multiple tasks simultaneously.
  • Highly experienced Field Representatives can focus locally on specific Due Diligence tasks.
  • You coordinate their activities, as their Leader.

Remember, your responsibility is to increase return on investment. This property may be performing poorly due to poor management by the Seller and your job is to gather enough information to determine if you can manage the asset more profitably than the Seller, BEFORE YOU BUY. Begin now to make the list of ways you would do a better job of managing the asset. This list will become the source of your Strategy for maximizing the asset’s profitability under your control. ROI begins here, and you can turn this into a high yield, short term investment with the right team.

By the way, do you want to learn more about investing like this? If so, I suggest you check out why this group of Doctors Invest as a Network to increase ROI.  You don’t have to BE a doctor to invest like one.