Not all buyers of real estate are in it to find a new home or find a location for a business. Some are in it for investing purposes. Over the last decade or so most people have probably seen television shows about “flippers,” people who buy old houses and buildings to renovate them and put them back on the market to try to turn a profit. Real estate can be a lucrative area for investment, but there are always legal concerns in any real estate transaction, no matter the motive for the purchase.
A recent article noted that there are pitfalls that real estate investors need to avoid if they are going to maximize their investments. One of the biggest pitfalls to avoid is failing to do “due diligence” before the real estate transaction is completed. The term due diligence can encompass a variety of tasks, depending on the real estate in question, but, in general, this task is primarily focused on attempting to ensure that there are no unseen issues or problems with the real estate, which could significantly impact the investor’s ability to make a profit.
For example, real estate with title issues can present a problem because those title issues will need to be addressed before the investor can purchase the property. Or, some problems that can be revealed by a good, professional inspection of the real estate may go undetected if an investor opts for a cash purchase and skips the inspection.
Any real estate transaction has the potential to cause problems for both buyers and sellers. Getting the right information is crucial, so it is important to contact an attorney who practices real estate law if you have questions.