The following Q&A was completed as part of our conversational Commercial Real Estate FAQ Interview Series, we hope you find it helpful.
Your due diligence timeline may vary when investing in multi-family properties. Typically, you’ll make an offer with a 30 day due diligence period so you have just enough time to conduct all of the components of due diligence you need. At an absolute minimum, you may have a 21 day period, and in some instances you’ll be just under 30 to keep your offer competitive for your investment.
Richard Wilson: What is a typical timeline for multi-family investment due diligence?
Brian Burke: The timeline varies by property to a certain degree. Typically when you’re making an offer you’re going to make that offer with a 30 day due diligence period. That 30 day due diligence period is going to give you time to conduct a variety of components of due diligence. 21 days is probably about the absolute minimum. We just entered in on a contract on a property here last week and we had a 25 day due diligence which was a good compromise between 21 and 30 and we knew we had to be competitive but we also wanted to make sure we had enough time.
Richard: Right, right, okay.