Question #21
Reading: Reading 33 Real Estate Investments
PDF File: Reading 33 Real Estate Investments.pdf
Page: 10
Status: Unattempted
Correct Answer: B
Question
Appropriate due diligence in a private real estate investment is most likely to:
Answer Choices:
A. mitigate unforeseen potential problems
B. lower existing operating costs
C. review lease and rental history
Explanation
Due diligence can be very costly but it can potentially lower risk of unexpected legal and
physical real estate problems. Due diligence will usually increase current operating costs.
A review of lease and rental history is one example of due diligence not a possible result of
due diligence.