We’ve previously discussed due diligence; today we’re going to add some more information on that. Thanks for checking out the Real Estate Today podcast.
I’m Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments. I’m Marcia Edwards, Residential Broker with Windermere Real Estate.
Marcia Edwards: We’ve been talking about the strategy of successfully procuring real estate in a seller’s market, and some of the opportunities out there. It’s fun for me to talk with Bob because the strategy, and investment commercial may be something that’s coming towards us in residential so I get to see it as a forecast. But, also some things that we use in the good real estate one on one transactions are still relevant in this kind of market.
Bob Nelson: Well, again I start with a process of understanding my client who are they, what are they trying to do, where are they trying to go with the next holding period, or ownership period? Then identify, break that down into a series of benefits. What are we really after? We’re not after a blue hotel, or three green, I’ve got that backwards. I guess I didn’t play enough Monopoly as a kid, I’m playing it now.
Marcia Edwards: Classic. The red hotels, and three.
Bob Nelson: Yeah, whatever it is. Anyway, the long, and the short of it, it is an interesting process of identifying what strategy am I going to use to go after the property that delivers those benefits. I’m very aware of all kinds of income producing properties. I shop the Oregon, Washington, Idaho, and Arizona market. I’m very current on what’s happening in those zones.
Where am I going to be able to get the best series of benefits for the lowest reasonable price? I’m finding it’s not necessarily Oregon at the moment. It may be Idaho, maybe Arizona. It’s an interesting thing, but I have the capacity to move around to satisfy those things. Once I see it though I’ve have to nail it down quickly because others are doing the same thing as I’m doing.
Marcia Edwards: What I’m learning in this arena is the due diligence process is significant. That’s a period of time when you understand what as is, is, you understand the condition of the property you’re about to purchase, and you make sure it’s aligned with what your expectations were when you wrote the original offer.
Bob Nelson: Exactly. It’s a process that is very scientific almost an art form. Marcia, you’ve got the expertise to do that, to be able to pull that off, and not miss situations that others may in fact overlook. There’s some really important things to do in the due diligence process. It’s a real scientific approach.
Marcia Edwards: We’ll talk more about due diligence in the next program. I’m Marcia Edwards, Windermere Real Estate.
Bob Nelson: I’m Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments.
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