This is a very good quote from the New York Times on buying foreclosures. If you are good at it and do your due diligence there are great profits to be made. But if you are an amateur or just throwing money at properties without understanding the history and condition of each property there are many problems that can befall you.
Pitfalls vary. There are buyers who bid too much in an auction frenzy. There are buyers who cannot inspect the property beforehand and find out later that it is missing items like copper wiring, toilets and cabinets. Or, a property may have a cloudy title, which may leave the buyers responsible for thousands of dollars in unexpected debts, say real estate agents, foreclosure investors, mortgage bankers and lawyers. “There is danger in today’s market because people who are thinking they are going to steal a foreclosure property and flip it for a profit are making the same error that caused half of the foreclosures taking place in the country,” said Wayne Palmer, who owns National Note of Utah, a money management firm in Salt Lake City. via the New York Times.
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Hi
'Due diligence' most debatable topic. what are the possible mistakes (overlooked)by management in due diligence investigation (in merger and acqusition)?
Please give me your feedback.
Thank you
sravan
Great Article! If you want to learn more about due diligence you should read Due Diligence for the Financial Professional by L. Burke Files. It is a well written guide to the thought process and not just another book of mindless check lists.
http://www.amazon.com/Diligence-Financial-Profess…