Experienced real estate investors know doing their homework pays, understanding that thoroughly checking off the list all of the details means avoiding nightmares that cost time and money. Moreover, these investors realize it all counts towards bringing the best possible return on their investment dollars.
Of course, skipping ahead to the ending of a book might be worth ruining the story for a reader, but neglecting to perform due diligence isn’t an option for savvy Chicago real estate investors. So you will want to pay attention to these five things you need to check first before purchasing an investment property.
Before ever looking at an investment property, the numbers should add up. Due diligence for Chicago real estate investors means checking the numbers twice, backward and forwards. When you invest in real estate, while it is a bonus if you particularly like a property, you should be much more excited about the numbers. Once you have performed your due diligence tasks, you should carefully examine any numbers that do not match the original reports.
Walk the Property
The next thing you need to check in the performance of your due diligence for Chicago real estate investors is the property itself, walking physically around the entire property. Remember you are also buying the sights, sounds, and smells surrounding you, so you should pay attention to neighboring properties before signing on the dotted line. Unless you are an experienced investor, it is prudent to ask for input from a trusted investor, likely to spot red flags an inexperienced eye may miss, like the experts at WeBuyChicagoHouses.com.
Flipping or Holding Costs
Due diligence for Chicago real estate investors should provide you with realistic estimates of any rehabbing costs, along with the costs to hold the property. Suppose you will be holding the property over the long term. In that case, it is essential to have an accurate accounting of annual expenses, such as hiring a professional property management company, any mortgage, taxes, maintenance, repairs, and even vacancies. If you are flipping properties, you should calculate an estimate of the time to repair and maintain the property until sold. Working with WeBuyChicagoHouses.com means working with an entire team, swiftly providing you with reliable numbers.
Review Legal Documents
Due diligence also requires Chicago real estate investors to complete a thorough review of all available information and any legal documents associated with the property. For example, a title search will identify problems, known as clouds on the title, with any liens against the property for debt. In addition, title searches may reveal breaks that require correction and could be something as simple as the misspelling of a name. They may also disclose possible fraudulent ownership or serve to clear the chain of title or history of ownership of the property.
Last but not least, as with every investment you make, due diligence for Chicago real estate investors should include planning your exit strategy. The real estate market does experience fluctuations, so you should begin with plans to remove yourself from this investment, remaining flexible and timely. As a business practice, professional investors like those at WeBuyChicagoHouses.com continually monitor changes in the current Chicago real estate market. These trends and other outside influences help provide Chicago real estate investors an educated estimation of the just when to sell the investment property.
The experienced investors at WeBuyChicagoHouses.com help Chicago real estate investors every day in the performance of due diligence. So why not turn to the professionals at WeBuyChicagoHouses.com to help you mark off all the boxes on your checklist. Call WeBuyChicagoHouses.com at (312) 757-7669 or send us a message today!