Hello and welcome. My name is Gino Barbera, one of the co-founders of Jake and Gino. And in this how-to

lesson, I'm going to be discussing the three phases of due diligence. So if you're looking to get

into your first deal or your next deal, do you have a checklist as far as due diligence requirements?

What are you looking for in the deal? If you don't have one or if you want to have one

that's really complete, I want you to listen on. Now, one of my biggest mistakes when I started

out investing years ago, it was due diligence. That was, how can I describe it? Maybe a linchpin.

I thought I, you know, just buy a deal, take it over,

not worry about it. Well, due diligence are probably two of the most important words in investing.

Trust, but verify. So important, but due diligence. What do you need to be looking for?

Now, let's break due diligence down into three steps.

So it's a lot easier for you to understand and what parts to tackle first and which one should you really focus on.

There's three aspects.

I want you to write these three down.

The first one is financial due diligence.

The second one is the physical due diligence. And the third one is the legal due diligence. I actually had a conversation with someone on bigger pockets

the other day and I had a post on due diligence. And the gentleman reached out to me and said,

you know, I don't really want to sweat the small stuff. With that kind of attitude, very similar

to what I had, the small stuff. With that kind of attitude, very similar to what I had,

the small stuff can be really big stuff. And what's for you to say what's small versus what's big

when you're starting out? Is legal more important than physical? Is financial more important than

legal? Take them all in their totality and make them equals and understand.

Now, once you create this checklist, it's so easy because you can follow the yellow brick road.

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