What is Due Diligence in Real Estate?

Real estate Due Diligence refers to the process of evaluating a potential real estate investment or transaction in order to determine its potential risks and benefits. It involves a comprehensive examination of the property, including its physical condition, zoning and land use restrictions, environmental liabilities, and other relevant factors. The due diligence process also involves reviewing financial documents, such as tax records and rent rolls, as well as any relevant legal documents, such as contracts and lease agreements. The goal of real estate due diligence is to provide the investor with a comprehensive understanding of the property and its potential risks and rewards, allowing them to make informed decisions about the investment.