What does Due Diligence mean?
A quick search finds: "Reasonable steps taken by a person in order to satisfy a legal requirement, esp. in buying or selling something."
So there's a legal component, ok, got it.
Wikipedia says "an investigation of a business or person prior to signing a contract, or an act with a certain standard of care."
There's likely a person or persons involved. Noted.
Wikipedia also mentions audits, esp. with regard to acquiring a company.
Ok, for any investment property, there definitely is:
- a legal name
- a title
- a history of ownership
- a retail value
- an assessed value
- land and/or building(s)
- a location
- a degree of repair
- a history of repair
- a reputation
- neighbours
- an owners value
- a membership in a local or larger economy
If I can do an audit on all the above, then a decision to buy becomes self-evident.
Assuming I know what I want!
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