Most people who have lost money in real
estate did not do as much due diligence as they should do. Never wave your due
diligence. Don’t ever think that you can wish it away. No matter who may be
introducing the investment to you, regardless of the respect you have for the
person.
If you adhere to this particular instruction,
you will save yourself a lot of headache in real estate. There are some people
who bought properties, and do not even know the location of the property. When
you ask them, they tell you ‘my good friend introduced it to me’. Such deals
could be highly risky. Some people have bought into real estate investments
without even visiting the company involved or finding out about them. They wake
up years later to realise that their money has gone down the drain. Their
refusal to do due diligence has cost them the money. When investing, you must
have something at the back of your mind.
People selling are usually in about two
categories, they are either positive or negative people. Your fate is sealed
when you fall into the hands of negative people, because they usually set out
to defraud you. Even at that, dealing with positive people does not safeguard
your money. Your money can still go down the drain with people who are positive
in the business, sometimes with their own money too.
By doing due diligence, you will not only be
saving yourself a lot of trouble, you will also be saving people you are
trusting, or people who have trusted you (as the case may be) a lot of trouble.
The people that are most interesting to sell to are those who ask lots of
questions. Don’t go into business with sentiments. People who say ‘I don’t need
to ask too many questions, after all we are friends, he can’t dupe me’ are
people who are not ready to take responsibility.
No comments:
Post a Comment