Commercial Real Estate Due Diligence Explained

What Is Due Diligence In Real Estate Investing? // Before you acquire a real estate deal, you NEED to know what you’re getting yourself into. So how do you double (and triple) check that everything on the property is as advertised before you transfer money in escrow? Enter, real estate due diligence. The due diligence process in real estate investing is a critical part of making sure you’re investing in profitable real estate deals. But what is due diligence? And what does the due diligence process actually look like?

In this video, we’ll explain what actually goes into commercial real estate due diligence, and what you need to look out for as a real estate investor.

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[GarthWilliams-xjjm]

Good information on CRE due diligence-thank you for taking the time...

[spring]

This guy is so inclusive these methods are universal across the world !!

[cynthiaruizrealtor]

I am a buyer's agent on a new investment deal. I usually sell residential, I have a lot to learn. Ready to enroll and get the most out of your videos. Thank you.

[EntrepreneurDrive]

Thank you for this very clear and thorough presentation. Saving it to my playlist to rewatch later👍

[yanceymcdonald]

As a general contractor that’s looking at getting into real estate investing. I would like to say great video! I would just like to point out one thing that I noticed. When you speak about asbestos surveys, it’s important to note that although there were laws passed in the 70s banning asbestos in construction materials. In the 90s that decision was struck down by the Supreme Court. So you should do asbestos surveys on every commercial property if you plan on renovating it or demolishing it. It should also be noted that it is required by DEP for asbestos surveys to be done on all commercial properties prior to renovations or demolitions. Anyone who tells you otherwise, is lying to you. I hate seeing investors and other people that I’ve worked with be blindsided by this. Because for an investor, it could completely ruin a deal and we’re all here to make money.

[mrubio]

Love the pic in the background... have one like that but of Chicago, not sure if it's the same artist and thank you so much for this video by the way.

[AngelaPrice-vt]

Just a slight clarification. A Phase I ESA is more than just a desktop review as the standard and All Appropriate Inquiry requires an on-site walk through of each building and across the entire Subject Property. While it is non-destructive (no sampling or groundbreaking) it is very critical to visit the property.

[buddyindian]

You are sharing so much resources and knowledge on commercial real estate aspects on YouTube. I thank from my bottom of heart ❤️ .The more you give the more you get from universe😀 keep giving more and more !!!

[nikojohn]

Could I give you a recommendation? I think you should zoom out the camera a bit to show your body language. I feel like you could keep people's attention for longer. But man, I love these videos. There's no one else on Youtube making as thorough and specific CRE videos as you are. Keep up the good work

[jaredstanfield]

Great video. Would love to see a video on entitlements, zoning, and permitting as it relates to development deals. Appreciate your content!

[jchan]

Hey Justin, after doing a property condition report on a shopping center, is it normal to ask seller for credits if roof and HVAC systems have less than 3 years of life left?

[tcpa]

Doesn’t due diligence begin after a contract of sale is executed between buyer and seller and completed before closing? In your video, you said that due diligence is performed “before you put the property under contract.” (0:57) It sounds like you’re saying that due diligence is completed before a contract of sale is executed. Would you mind clarifying what you mean. Thanks.

[LivinginArlingtonTexas]

Thank you your voice is really good for the videos by the way

[RyanEck]

Do you your paid courses qualify for continuing education in any states?

[FlipWithRick]

Hey! Liked and Subbed for more of that great real estate content. I love seeing those great little nuggets.

[nate]

Loved the video. Do you have a course in Hotel due diligence?

[bonafide]

Hi Justin. I have found an older building (2 floors) with residential (2 units upstairs) and two commercial units downstairs. My ground level unit is rent ready as I plan to put my barbershop in there. But the building had dead Bugs laying around and just really old and dirty building. So I asked my lawyer to give me a month’s time after the start of the lease contract to begin the commencement of base rent payments and he declined. My question to you or my concern is that if I sign the contract and the city does not deem this property suitable for occupation (certificate of occupancy) I will lose out. The landlord also said that in the case that happens, to just give him 3 months of base rent and the issue is handled. What can I do to make sure I will 100 percent have this building suitable to occupy my barbershop in before signing the contract? For instance, do I ffill out an occupancy application and have the city come in and inspect the premises and depending on what they say, let’s say I do all of the requirements, and once I get the occupancy permit, then will I be safe in signing the contract.
Also what other things could you suggest I do? Thanks Justin.

[Alex-gxmb]

Do you put due diligence money down on commercial property?