If you’ve never been to a note investing workshop, you may not know where to begin. One thing you always have to remember is once you make an offer and it’s accepted, it’s important to do due diligence. Due diligence, simply put, is making sure you’re getting what you’re paying for. You get as much information as you can about the property and fully investigate it for potential issues, including getting your eyes out there and doing a site inspection. Learn the three-part process of due diligence as Scott breaks down basic due diligence on your deals before and after you bid on an asset.
"We often get a lot of people asking questions about due diligence. We had a few more of the normal questions. I was like, “I’m going to go ahead and do a webinar on this to go through some of the basic stuff that you need to know for it.” It’s all about Due Diligence for Dummies. You are in the right spot hopefully forWeCloseNotes.com. We have a big goal. I always like to start the show off here with what our goal is. Five-year goal to help educate and create 10,000 note investors and we’re well on our way to do that, especially close to hitting year one’s goals for the most part and we’re still over halfway, which is phenomenal. We’re here. We cannot do it without you here, so looking forward to that.
Everybody is always wondering who is on Note Night in America with us. There are a variety of people on with us. Real estate investors, note investors, people looking to get into notes. Please do me a favor. Go to Apple podcast, look forNote Night In America. I would love it if you left a review there. Along with that,Note CAMP 5.0is also on iTunes as its own podcast. We went over the 5,000-download mark. We celebrate our 300th episode of The Note Closers Show. It’s hard to believe that 150th podcast episode. We had 150 just pure Facebook Live stream episodes before we went to the podcast. The next one marks the 300th episode. It’s mind-boggling to me. When we started, I didn’t know if we’d get to 300 but we did and we’re going to keep rock and rolling. Thank you to all of you that listen, share it, download it, comment and we would not do the show without you. Thank you so much for being a big part of that."
Listen to the full podcast episode here: http://weclosenotes.com/ep-nna-16-due-diligence-for-dummies/
FAQs
Due diligence is a process or effort to collect and analyze information before making a decision or conducting a transaction so a party is not held legally liable for any loss or damage. The term applies to many situations but most notably to business transactions.
What are the 3 examples of due diligence? ›
There are many possible examples of due diligence. Some common examples include investigating the financials of a company before making an investment, researching a person's background before hiring them, or reviewing environmental impact reports before committing to a construction project.
What is enough due diligence? ›
Due diligence is defined as an investigation of a potential investment (such as a stock) or product to confirm all facts. These facts can include such items as reviewing all financial records, past company performance, plus anything else deemed material.
What is simplified due diligence? ›
Simplified due diligence (SDD) is exactly what it sounds like: A simplified, more streamlined form of due diligence that financial institutions, law firms, and other industries can leverage when the risk of money laundering, terrorist financing, and other financial crimes is deemed to be low.
What best describes due diligence? ›
Due diligence is defined by the Cambridge Dictionary as an “action that is considered reasonable for people to be expected to take in order to keep themselves or others and their property safe”.
What are the 4 P's of due diligence? ›
The 4 P's of due diligence are People, Performance, Philosophy, and Process. These key elements form the foundation of a thorough due diligence process, covering aspects related to the team involved, performance metrics, investment philosophy, and the overall process followed.
How do you demonstrate due diligence? ›
Due diligence
- Be aware. Ignorance is no defence, so know your legal obligations under the Workers Compensation Act and the Occupational Health and Safety Regulation, your health and safety responsibilities, and best practices for your industry.
- Be objective. ...
- Be proactive. ...
- Be vigilant. ...
- Be on record.
A due diligence checklist is a way to analyze a company that you are acquiring through a sale or merger. In the context of an M&A transaction, “due diligence” describes a thorough and methodical investigation and assessment.
What is a better way to say due diligence? ›
Due Diligence Synonyms
Analysis, assessment, audit, examination, review, survey, verification, investigation.
What is a good due diligence? ›
Due diligence is the steps an organization takes to thoroughly investigate and verify an entity before initiating a business arrangement, whether that's with a vendor, a third party or a client. In the general business sense, due diligence means vetting issues that affect the business thoughtfully and carefully.
Standard due diligence requires you to identify your customer and verify their identity. There is also a requirement to gather information to enable you to understand the nature of the business relationship.
What is due diligence for dummies? ›
Due diligence is everything that happens in between going into contract and finishing the close. Due diligence broadly falls into the realms of the physical, financial, and legal. Don't skip any of the steps. Doing so could cost you.
What are the three principles of due diligence? ›
Below, we take a closer look at the three elements that comprise human rights due diligence – identify and assess, prevent and mitigate and account –, quoting from the Guiding Principles.
What are the two main types of due diligence? ›
We uncover 11 key types of due diligence in M&A and look at examples of how they are used, and provide practical due diligence checklists.
- Financial due diligence.
- Legal due diligence.
- Tax due diligence.
- Operational due diligence.
- IP due diligence.
- Commercial due diligence.
- IT due diligence.
- HR due diligence.
Due Diligence Synonyms
Analysis, assessment, audit, examination, review, survey, verification, investigation.
How do you explain diligence to a child? ›
It means doing hard things with an attitude of goodwill, and can stimulate a feeling of being trusted and responsible. It emphasizes the quality of taking care. Doing things with love, care and precision often leads to a very special kind of personal satisfaction that is the reward for diligence.
What is due diligence in everyday life? ›
It's equally important in everyday life, whether you're picking out an app, determining the best use of your money, or even deciding where to dine next Saturday. Due diligence is about being informed, prepared, and forward-looking in all your decisions. It's the art and science of mitigating risk.
