PepsiCo consistently uses the well-known slogan “Do the Dew” to promote their Mountain Dew soft drink. Simple and to the point, it has served as a staple in marketing the product. Carlton Dean, Managing Director and advisor at SVN | SouthLand Commercial in Tallahassee, thought of “Do the Dew” in relation to due diligence in commercial real estate. By definition, due diligence is “the reasonable steps taken by a person in order to satisfy a legal requirement, especially in buying or selling something.” Carlton discusses the importance of buyer and seller due diligence in commercial real estate in his most recent blog post. Using a proven system, knowing your responsibilities and having an advisor with experience during the process are among the strategies he discusses. Read the excerpt below and finish reading the article by clicking the green button at the bottom of the page.
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Do the Dew
Do the Dew and Commercial Real Estate
Proper due diligence is critical to fully understanding what you are purchasing as a buyer. In a real estate context, it refers to a specific number of days in a contract for a buyer to investigate and inspect the property. This process is to ensure that the buyer is satisfied with it before they close on the property. Thorough due diligence will allow you to uncover any negatives and sometimes positives associated with a transaction. These positive and/or negative findings may allow you to improve your negotiations. Due diligence will certainly assist you in your underwriting of the asset PRIOR to purchase. This ensures the investment mirrors your assumptions and analysis as accurately as possible. Surprises are great for birthdays and Valentines day, but are NOT what you want in commercial real estate investments…