What is due diligence in real estate investing?

@jamir 

Due diligence in real estate investing refers to the comprehensive investigation and analysis conducted by investors before purchasing a property. It involves researching and evaluating various aspects of the property, including its physical condition, financial performance, legal status, and market factors, to ensure that the investment is sound and meets the investor's objectives. This process aims to identify potential risks, uncover any hidden issues or liabilities, and verify the accuracy of the seller's claims. Due diligence typically involves reviewing property documents, conducting inspections, analyzing financial statements and rental agreements, assessing market trends, and consulting with professionals such as attorneys, appraisers, and surveyors. The information gathered during due diligence helps investors make informed decisions and negotiate favorable terms during the purchase transaction.