Performing Incomplete Diligence
This involves buyers essentially cutting the process short due to time or other constraints, according to Occhiogrossi. Other mistakes related to this part of the investment process include performing “inadequate level of due diligence to evaluate existing collateral” and “waiving rights to perform due diligence of vertical components, particularly in portfolio situations.”
“This is ultimately a business risk and investment risk decision,” Occhiogrossi notes.
Assuming a Recently Constructed Building Has No Problems
This is especially true when the market gets revved up and builders rush to complete developments or hire less than qualified workers, often leading to construction defects. Buyer beware.
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