Austin Due Diligence|
Austin due diligence is an essential step in real estate investment. Due diligence includes the process of reviewing the physical real estate, market conditions, prospective market conditions, financial data, and assumptions regarding the real estate to ensure that assumed and reported information are correct. After selecting the property type and geographic location, the investor needs to ascertain he has accurate information regarding the physical asset, financial performance, tenant base and future prospects for the subject property. Due diligence helps the investor accomplish those tasks.Reduce Risks and Do More Deals
Due diligence can provide in-depth data and insights for these areas and mitigate the risk of a real estate investment. Engaging a third-party due diligence provider allows a real estate investor to review more prospective real estate investments and to more quickly terminate consideration of real estate investments which do not fit his investment criteria. The costs associated with due diligence are minimal compared to the costs of making an imprudent investment decision.Due Diligence Benefits
In addition to investors avoiding unfavorable investments, due diligence can:
The financial costs and time expended by the investor and the opportunity cost (of not pursuing other more attractive investments) related to fully analyzing a real estate investment are substantial. Due diligence helps to reduce these costs. A preliminary due diligence analysis to test the investment hypothesis can lead to terminating review of a potential investment before substantial expenses have been incurred. In most due diligence cases, the business person leading the investment effort has developed an "investment hypothesis". Potential "investment hypotheses" include the following:
Investors can save both time and money by performing an initial review of the investment hypothesis. Most of the due diligence services can be performed by a skilled and experienced real estate appraiser. An investor can leverage his time and focus on more "value added" activities by allowing a skilled appraiser to perform due diligence tasks. In many cases, the investor has too many other time consuming commitments and responsibilities to personally perform an in-depth analysis or to visit the property to confirm the investment hypothesis before proceeding with an acquisition. If it is possible to eliminate investments which do not meet the investor.s criteria before negotiating the contract to purchase the property, the investor can save legal fees related to the contract, time involved in negotiating the contract, time working with the lender, the cost of third-party lender. related records and any additional due diligence the investor would perform.
The list of due diligence tasks which should at least be considered is daunting. However, the time and cost related to properly performing due diligence is insignificant compared to the time and cost to remedy a poor investment.
O'Connor & Associates' staff complement of over 50 real estate professionals can handle any or all of these to due diligence tasks. These professionals are supported by a support staff of over 100 who are accustomed to complex assignments. Our team has experience in all aspects of real estate including acquisitions, due diligence, ownership, appraisal, property tax appeals and dispositions. Reduce your risk and stress by utilizing O'Connor & Associates. breadth and depth of experience to evaluate your real estate investments.
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