REI Wealth Magazine Featuring Kaaren Hall with uDirect IRA Services | Page 69
W
hat About
Enhanced
Diligence?
In the beginning,
commercial real estate
investor owns it. This is gas line routing, electrical
why Enhanced Diligence is wiring and service upgrades,
so important. It has got to and moving “loadbearing”
be done! walls. So what? Turnkey
Exterior Issues
operators will say that their
repairs were “done with
permits”, but this doesn’t say
brokers invented the term
“due diligence”. Lacking a Common sense suggests everything. A turnkey
specific definition, it purchasing a property with operator might “pull permits”
basically means, “Check it a hardy exterior, especially for some repairs, but not
out”, when making a real in areas with harsh winters others, usually in order to
estate purchase. Nowadays, or hot, dry temperatures. save costs. Or, they might
the term has received wider Basically, this means the purchase permits at the
use in home purchasing, less wood, the better. Think Building Department, but not
turnkeys, syndications, and of tile or concrete roofs, call for the required
more, but its application still brick/block/stone/vinyl inspections, and not have
has no formula. This article exterior walls, and vinyl the permit “finaled” (i.e., all
aims to correct that for windows. Arrange these for signed off). For example,
turnkey investing with what your purchase as best you paying a $22.00/hour
can be called Enhanced can. “handyman” to reroute a gas
Diligence.
line is much cheaper than
Initial Philosophy Repairs “Done
With Permits” When an investor Most turnkey projects with people could get hurt by
purchases a turnkey substantial rehab work will improper work, and
property in a distant location involve the need for building insurance claims will be
from a rehabber who installs permits. Common examples justifiably denied if this is
a tenant and arranges for include roof replacement, discovered.
paying a $60.00+/hour
licensed plumber to do the
job. This matters because
property management, the
investor is buying a
property. The rehabber
might move on, or go bust.
The manager might prove
ineffective. The tenant might
move out. What is surely
left is the property. The
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