Due diligence is the process of double checking everything before finalizing a purchase. Proper due diligence is an absolutely crucial part of every profitable Kalamazoo real estate investor's success.

 In this article, I'll talk about the best ways to do your due diligence based on my experience in Kalamazoo MI real estate.


Due diligence should start with the proper verification of the books. You should check all the rental agreements and double check all rental histories.  Review at least the last two year's financial statements and see if there's anything unusual that raises a red flag.

Double check the actual rental income with the amount of rental income the building should be receiving based on the lease agreements.  These numbers will often not match up.  As the building's future owner, you should know why.

Check all the utility bills.  Make sure there are receipts for every payment.  If there isn't one, contact the city or the utility company to get a copy of the receipt.

Look into how old the building is.  If it's old, look into what the building codes were when the house was constructed.  Will there be costly renovations you'd have to make to bring the property into compliance with current building codes?

If the building is new, does it have a home owner's warranty?  Look carefully over this contract so you know what it covers.

Walk around the building and do an inspection by hand.  Look at the conditions of the walls and watch for fire or water damage.  Check the electrical and plumbing systems.  Make an educated guess on how long the roof will last before it needs repairs.  Get a home inspection!

Remember that everything you find during the due diligence process is "ammunition" you can use to negotiate a better deal with the seller. The seller wants to make the deal happen as much as you do, but there's no reason for you to pay for more than the property is really worth based on its condition.

Even if the property is one of the Kalamazoo MI foreclosures, the seller wants it sold.  Kalamazoo foreclosures often sell quickly because many times they are priced at what appears to be below market value.  Many times they are bargain priced, but make sure you're really getting a great bargain.  Go through your process of due diligence and gather the information.

Begin your due diligence process as early as possible.  Start your inspections before you make an offer.  Even after you've made an offer, make sure that you have clauses in the contract that allow you to inspect the property and the necessary documents.

When making offers on Kalamazoo foreclosures, you will have to decide whether or not to include an inspection period in your offer.  If you've found the property early enough, it's best to do your inspections prior to making offers on Kalamazoo MI foreclosures.

There is a lot of free information available to you about buying, selling or investing in Kalamazoo real estate.  For complete information about the Kalamazoo MI real estate market including Kalamazoo homes for sale, property values and more, please visit the most complete website dedicated to everything Kalamazoo real estate.

For a FREE Weekly List of Kalamazoo MI foreclosures and forclosed homes in the surrounding areas, you may fill in the form below and we will compile a list from our three wholesale databases and send them to you right away.

Just fill in the form below with your correct name and e-mail address and we will e-mail you the list.

You may specify in the comments box if you have a particular interest in Kalamazoo foreclosures, or Kalamazoo HUD homes for sale. 

To learn more about Kalamazoo foreclsoures, including HUD homes for sale Kalamazoo MI, visit our website dedicated to finding the best deals on Kalamazoo foreclosed houses, visit http://EasyHUDHomes.com

If you or someone you know are in need of a competent and caring Kalamazoo real estate professional in or near Kalamazoo MI, I hope you will contact me.

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 Tags: Kalamazoo Real Estate, kalamazoo mi real estate, kalamazoo foreclosures, kalamazoo mi foreclosures, kalamazoo foreclosed houses

Article's Author

Joel Nelson
Keller Williams Realty - Kalamazoo
Kalamazoo, MI

Contact Joel Nelson