Due Diligence

The investigation window after a contract is signed — verifying condition, title, numbers, and risks before the deal becomes binding.

Due diligence is the period after going under contract when a buyer confirms the deal is what they think it is: inspecting the property, verifying repair estimates, checking title and liens, confirming comps and ARV, and reviewing any leases or violations. Contingencies in the contract usually let the buyer renegotiate or walk if something material turns up.

For wholesalers, the due-diligence window doubles as the time to find and assign the deal to an end-buyer, so the inspection period and the dispositions clock often run together. Skipping real diligence to move faster is how investors inherit problems — undisclosed damage, a clouded title — that erase the margin entirely.

Related terms

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