One of the most common mistakes investors make is attempting to reduce costs during due diligence.
The cost of comprehensive property due diligence is minimal compared to the potential financial impact of undiscovered risks.
Issues such as:
- Planning restrictions
- Infrastructure charges
- Tenant solvency concerns
- Environmental risks
The above can result in tens or even hundreds of thousands of dollars in unexpected costs if not identified early.As a guiding principle, thorough legal work is not an expense, it is an investment in protecting the asset.
Watch the Due Diligence episode here:
