Hi Folks,
I’m after a little help with Due Diligence.
Due Diligence is something I’m still not sure about. I am going to do some initial cosmetic renos then resell them to build my capital. I know I need to research the costs for various renovation tasks, the likely sell price for the end result, and any purchase, holding, and selling costs I will incur.
Are there any other aspects of the deal that I need to research to increase the likely hood of a successful outcome.Thanks
MikeL1. Try to make sure you buy below market value … or at least at or just below median price of the area….
2. Look at current market and assess your position as to what he market is doing currently (Rising, Flattened or soft).
3. Assess your costs and realisitic realisation of your renovatoins in capital gain?
4. Work out your holding time and how much cash you need to inject into the project before you are likely to get a return.
5. Look at How much cash you will need and whether you can get all the renovations done prior to settling and perhaps even have it remarketed and resold before your loan is actually drwn down. – get an extended settlement with early access to complete renaovation and to market the property agreed to in your contract of sale with the vendor.Then consider:
– How much Cash in
– How long in for
– For what return
– assess risks
– Compare to other deal you have assessed
– take action – Walk or take the deal!
Just my opinions… take it or leave it … after all its FREE!
Cheers
KiwiBut Most of all…… HAVE AN EXIT PLAN BELFORE YOU BUY!
Cheers
Kiwi
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