Imagine making the commitment to invest hundreds of thousands of dollars in a property that you only had a few minutes to observe from the front yard. You write the check, go inside and see what you’re dealing with…
Recently I’ve been watching a show on Discovery Channel where investors purchase foreclosed properties without actually knowing what issues the property has. There is no formal inspection process, and these buyers are shown driving up to the house just before the auction starts and bidding on the property based upon publicly available research and a first impression. I don’t have the courage.
I asked a friend of mine, David Jolley (Regional Maintenance Manager for a national management company), what he looks for during the due-diligence process before purchasing a property. He says he looks for:
A couple of items that I would add are:
For a maintenance department, taking over a building is interesting. Fortunately, we have more than just a couple of minutes to evaluate the property before purchase.
I like being able to view the situation on TV as a third party. Based upon my first glance, and first impression, of those properties property, I take a guess as to what repairs will be needed inside. And if for no other reason, the show is a lesson on the importance of curb appeal.