How to carry out due diligence into property investment deals

CEO of QB Investing, Lizzie Frazer, often finds that investors rarely do enough due diligence on their property development investments. It’s normally down to lack of time, lack of expertise or not enough information. When parting with large sums of money, it’s important that you know the risks involved.

QB Investing prides itself on the amount of quality due diligence that we carry out on our property development deals. We focus on the investor’s point of view with a major emphasis on risk mitigation.

Tune in below for 5 of the considerations that we concentrate on when assessing investments.

 

In summary:

  • Is there a sufficient profit margin?

  • What is the exit strategy? Does it work and do you have a backup?

  • Is the deal over leveraged?

  • Have you seen sufficient evidence to back up the developer’s assumptions?

  • What are the ongoing monitoring provisions?

This list is of course not exhaustive but gives an indication of things to watch out for.  What other factors do you concentrate on when it comes to deal analysis?

 
 

Want to know more? Send us an email on info@qbinvesting.com or fill out the form below.

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