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Warning: Lost $3,200 on a strip mall due diligence report that was mostly copy paste
I put an offer on a small strip center in Toledo last fall and paid a consulting firm $3,200 to review the leases and the roof before I closed. What I got back was maybe 6 pages of stuff I could have read myself, plus two paragraphs that were word for word from a report they did on a different property in another state. The one real issue they did flag was a tenant with a co-tenancy clause, and even that write-up was two sentences with no numbers in it. I walked away from the deal after my lender caught the same problem and asked why my guys missed it. If you are paying for due diligence, ask to see a sample of their actual work first and get a flat scope in writing. Anyone have a person in Ohio they trust for lease reviews who does not just spit out a template?
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the_nancy4d ago
Word for word copied from another state? That's wild.
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