I’ve been thinking a lot about my due diligence processes lately, as I near the completion of my online due diligence training course. Right now I have a handful of people beta testing it for me, and I’ve been receiving a lot of excellent feedback. I’m incorporating some changes and brushing it up, and plan to have it generally available before the end of the year. If there are any particular areas of the due diligence process you are struggling with, please reach out and I’ll see if I can address it in the course.
This is still a work in progress, but I have information on it posted here, and the course curriculm is here.
My due diligence process is broken into sections:
1) Determine Your Strategy
You need to figure out what your note investing strategy is going to be. This could be performing notes, non-performing notes you want to get to reperform, or non-performing notes with a plan to aquire the property. This will drive how you filter for assets when going through a tape.
2) Pre-Bid Process
When I receive a tape I need to filter it to decide which assets (if any) fit my strategy and that I want to bid on. Some of these steps can be done quickly. Others require manually pulling data from online, which can take a little more time. Most bids don’t get accepted, so I try to minimize how much manual work I have to do in this phase.
3) Post-Bid Process
After the bid is accepted is when things because more time consuming. I’ll get on the phone with the city or county, and start pulling BPO and O&E reports, and have an attorney review the docs. This phase is obviously the most critical since you need to determine whether you will be able to close on the asset.
While the general steps are fairly straightforward, the devil is in the details. If there are any particular areas of the due diligence process you are struggling with, please reach out and I’ll see if I can address it in the course. I haven’t seen them all, but I think this may be the most detailed and complete course on due diligence anyone has put together. I plan to add to it and improve it over time, so I’ll always be looking for new things to include and I appreciate all input.
The Note Investor Podcast Episode 15 – Fusion Income Fund Webinar
In this week’s podcast episode I posted the replay of my recent webinar on the Fusion Income Fund. I talk about the details of the fund, and discuss my view of the current note market and the strategy I will be pursuing.
You can listen to the episode on iTunes here or watch it on YouTube: