"Due diligence is the process of 'doing your homework' on the property that you want to buy as an investment" says Ateeya Manzoor a Skilled Strategic and Risk Manager. It is the process of checking and double-checking any important information that was used to determine whether the property is a good, average or bad deal.
Property due diligence takes persistence and weeks to accomplish. Remember, that due diligence isn't used as an excuse to back out of a deal; it’s primarily a means to protect you financially and legally. There is usually no charge for you to perform due diligence and it uncovers any potential problems with the property. Potential problems can be costly and quickly turn a good deal into a bad one. Any experienced real estate investor knows and understands the importance of completing due diligence tasks.
Unfortunately there is no consistency between councils on how they deal with developers. Each council has its own rules and regulations so it is up to you to understand and know the local regulations to ensure that your development meets all the guidelines the first time.
MAKE SURE YOU KNOW YOUR BREAK-EVEN POINT
One of the main things you need to know before jumping into a deal is how much income you need to bring in each month to at least break even in cash flow. It is stressful owning and managing negative cash-flow properties, so the question is, where do you need to be occupancy-wise to at least break even? You want to get to this position as soon as possible. Getting to the break-even point allows you to predictably turn the corner to positive cash flow and profitability.
Rental property is only a vehicle to get you where you want to go in life. Collect as much information as you can to get behind the wheel of your financial vehicle. Only YOU can turn the key to start. As you learn the corners and improve your handling, your financial vehicle will speed up. You may occasionally take the wrong turn but you can back on track again with persistence, focus, determination and a belief in yourself. Remember that action overcomes fear and creates energy.
Keep focused on your goal, overcome your problems and never sell unless absolutely necessary!
Timing in the market is difficult to predict. Timing can multiply your gains in the short term but in the long term make little difference. The main thing is to ACT. When the market is booming some people will say that the prices are too high and when the market is dead they will say that there is no future in real estate. To buy in a 'dead market' means that you are not following the herd like a lemming.
Ateeya Manzoor is the Managing Director of Mayfair Management Group and a skilled strategic and risk manager with over 20 years of experience, 12 of which have been at the executive level. Through her 20+ year career spanning Bay Street and Main Street, she has worked on projects in the technology, legal, hospitality, property development, engineering, oil and gas and professional development industries.
Clients value her vision and unrelenting commitment to delivering tangible results.
For more details, please visit here: http://ateeyamanzoorpost.simplesite.com