A Real Estate Due Diligence SYSTEM

Last time I wrote about a way to make sure you stay in control of the deals that hold promise.

Take that property under contract as soon as it looks "meaty"
and THEN do your thorough due diligence.

Don't wait ... lock it up.

When you develop this habit, you will be much less likely to lose a deal AND you will need to be quick and efficient in your information gathering before the close.

The key is a Due Diligence System.
The emphasis here is on the word SYSTEM.

---

The System is the Solution

Check the boxes before your money goes hard

---

Here is the definition of a "System" I learned a long time ago.

A System allows even ordinary people
to attain extraordinary results PREDICTABLY.

Without a System, even extraordinary people cannot attain even ordinary results PREDICTABLY.


Collecting all the information you need to make the best decision on a large piece of real estate can be a daunting task. There are so many pieces of paper to gather and people to talk to and only a limited amount of time.

It can be very easy to find your earnest money about to go hard and you still don't have all the data you need to feel comfortable going ahead.

I know you have been there ... I can see you smiling.


The Checklist IS the System

There is nothing that ensures excellence in Due Diligence more than a well thought out Checklist.

Write down all the tasks and information needed in the order you need them and let the Checklist be your System.

I always find it is best to start by building my checklist as comprehensively as possible - make a list of ALL the possible things I would need to know about a property - and then tailor the comprehensive "reference" list to the specific property in question.

Where can you find a Comprehensive - Real Estate Specific - Due Diligence Checklist ?

I have collected three of them from legal websites (you can always count on attorneys to be as thorough as possible since they bill by the hour) All three are downloadable from my website at this link:

Due Diligence Checklist Collection

---

Three Steps To Your Own Due Diligence System

1) Read all of the checklists at my site (link above)to get three different viewpoints on the definition of comprehensive Due Diligence.

2) Pick the one that you find most matches your temperament and use it as your Due Diligence Reference Checklist - everything you could possibly want to know about a property.

3) Use it to create the actual Working Due Diligence Checklist for that specific property. Read through your Due Diligence Reference Checklist every time you have a deal under contract and create a customized "Working Checklist" for that one property. Then get all the boxes checked.

---

Here's the best part about a Checklist ...
You Can Delegate It !

You systemize for two reasons

1) To ensure an excellent result - in this case a high Quality "Pass or Play" decision

2) To be able to delegate the actual on-the- ground work to a team member without a drop off in quality

Due Diligence is just one of the activities you can systemize in your business.

A Due Diligence System allows you to accelerate by taking multiple properties under contract at the same time. With the system in place you know that the information you need to make a high quality decision will be there when you need it. AND you can build a team and delegate with confidence.