Due Diligence for Commercial Property
Due Diligence – the Facts
There’s a a huge problem in the commercial real estate business and only a few are talking about – it is DUE DILIGENCE. The vast majority of investors, real estate brokers and commercial real estate professionals barely scratch the surface when conducting their due diligence when purchasing commercial real estate property including investments.
Investors are taking unnecessary risks and throwing money away or making bad investment decisions, by not properly performing due diligence. Brokers / Agents are putting themselves at risk for potential litigation and missing an opportunity to help their clients as an ally without good sound due diligence being undertaken.
What is good due diligence?
Due Diligence, if performed properly and thoroughly, will prevent you from experiencing major setbacks and expenses or keep you from making an investment that you should not. It should never be taken lightly or for granted. Every item should be scrutinised carefully and methodically. Assume nothing. However, if you are to assume anything, assume there are a large amount of problems waiting to be discovered which could save you a ton of money and headaches, if you catch them; because the reality is there are always issues.
You are virtually throwing money away by not performing a thorough due diligence on property you’re looking to purchase.
If you do it or have it done properly, it will pay off greatly and save you countless problems and headaches to deal with later. Remember, a successful due diligence leads to a greater buyer piece of mind and less post settlement surprises. Done properly, it will also save you a ton of money and ensure the correct or proper investment decision is made, to buy or not to buy.
The areas to be considered under each of these broad headings are considered by us and we hold the view that each is an area to be addressed during your review of your subject property. This approach allows you to review the matters most likely to impact on your investment decision and if you purchase, on your bottom line. These need to be taken into consideration during due diligence examinations . Good planning involving such matters will ensure your due diligence leads to your making the appropriate informed decision as smoothly as possible.
As the experts in these matters, we recommend you always consider consulting the people that can help you most by making sure that the process can be beneficial to you. We will quote your needs and issue you with a Letter of Engagement in which will be outlined our role in undertaking these important tasks for you.
The costs to undertake Due Diligence may be the most beneficial cost you might expend in connection with the business or property.
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