If you’re a money partner or wanting to be a money partner, there is some due-diligence you need to do before you lend your money.
1. mentored. Ask to see proof of previous projects or what program they are apart of.
2. You need to be confident in the funding proposal you’ve received, check it’s accurate, no mistakes of things missing.
3. Check the feasibility, do the numbers look accurate? Is there a contingency?
4. Does the schedule & timeframe look accurate? What timeframe are they proposing they will have this completed by?
5. What are the market conditions in the suburb/ town of the deal? What are the days on market?
6. Check the Current Market Analysis, will they sell it for what they are proposing? How do the current listings compare?
7. What security is being offered to protect your interest in the property?
There is risk in all business, but you want the risk to be a calculated risk, therefore it is your responsibility to ensure the deals stacks up.
