How Much Due Diligence Should I Do Before Writing An Offer?

Hi Steve,

I have gone through your course and have a question. At what point do I need to complete a rent and sale comparable study if I am looking to invest in an apartment building? Your course makes a lot of sense and it breaks everything down but I am confused about how much time to spend working on that information before I write an offer. It seems like I would spend a ton of time doing that with no time to do anything else. Do I need to do it all before writing an offer?--Brian J******, Louisville, KY

Brian,

When I work with coaching students I have them complete a rent and sale comparable analysis using the Apartment Evaluator just to get use to doing it. Yes, you need to understand sale comparables somewhat before writing an offer and, by default, you’ll learn a little bit about the rental market. How do you do that? More than a half dozen agents in any given region will be more than happy to get some information to you in hope that you’ll eventually do business with them. You don’t need to do a full analysis initially. Begin by locating motivated sellers who own properties that are within your price range. When you find a property and qualify it as worthy of your time get it under contract and then get more specific during due diligence. That's when you'll make the most money. For more information, check out How to Turn Due Diligence Into BIG PROFITS!

Thanks for the question.

Do you have a question for Steve? Email him at steve@stevesteadele.com.

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