Episode 44: The Due Diligence Timeline: 30-60-90 Days Explained

Building Passive Income

00:00 / 00:18:27

Welcome to Building Passive Income with CREI Collin

Due diligence is not something you can wing. You need a clear plan.

In this tactical episode, CREI Collin walks you through a step-by-step real estate due diligence timeline so you know exactly what to do and when.

Learn what to focus on in the first week, how to structure your deep dive, when to order third-party reports, and how to make a confident final decision before your deadlines expire.

If you have ever wondered how the due diligence timeline actually works in a real deal, this episode gives you a practical framework you can follow.

In This Episode, You’ll Learn:

• Why due diligence periods are typically 30 days—and when you may need 60 or 90 days

• A clear week-by-week breakdown of the real estate due diligence timeline

• What to do in Week 1: initial review and document collection

• How to review the Purchase and Sale Agreement (PSA) for key terms and contingencies

• The core due diligence document request list

• When to order third-party reports like PCA, Phase I, and appraisal

• What to do in Week 2: inspections and deep analysis

• How to conduct a property visit and what to look for

• How to perform a financial deep dive and lease audit

• What to do in Week 3: review reports and finalize financing

• How to interpret PCA, Phase I, and appraisal results

• What to do in Week 4: compile findings and make your final decision

• The three options: move forward, renegotiate, or walk away

• How to request an extension if you need more time

Key Topics Covered:

[00:00] Introduction – The Due Diligence Timeline Framework

[02:15] How Long Does Due Diligence Take? – 30, 60, or 90 days

[04:00] Week 1: Initial Review and Document Collection

[04:30] Day 1-2: Review the PSA – Contingencies and timelines

[05:15] Day 1-3: Request Documents from the Seller

[06:30] Day 3-5: Initial Financial Review – Identify deal-breakers early

[07:45] Day 5-7: Order Third-Party Reports and Schedule Property Visit

[09:00] Week 2: Deep Dive and Inspections

[09:30] Day 8-10: Conduct Property Visit – Review a meaningful sample of units

[11:00] Day 8-14: Financial Deep Dive – Verify income against deposits

[12:15] Day 10-14: Lease Audit – Review concessions and delinquency patterns

[13:30] Day 10-14: Title and Survey Review

[14:00] Week 3: Third-Party Reports and Analysis

[14:30] Day 15-21: Review PCA – Repairs and capital expenditures

[15:45] Day 15-21: Review Phase I Environmental – RECs and risks

[16:30] Day 15-21: Review Appraisal – Impact on financing

[16:45] Day 15-21: Finalize Financing

[17:30] Week 4: Final Review and Decision

[18:00] Day 22-25: Compile Findings and Quantify Leverage

[19:15] Day 25-28: Make Your Decision – Move forward, renegotiate, or walk away

[20:30] Day 28-30: Remove Contingencies or Terminate

[21:15] What If You Need More Time? – Requesting extensions early

[22:00] Recap and Next Episode Preview

Key Takeaways: Real Estate Due Diligence Timeline

Week 1: Initial Review and Document Collection

✅ Day 1-2: Review the PSA immediately—confirm terms, contingencies, and deadlines

✅ Day 1-3: Request all documents from the seller—do not delay this step

✅ Day 3-5: Conduct an initial financial review—identify deal-breakers early

✅ Day 5-7: Order third-party reports (PCA, Phase I, appraisal)—these take time

✅ Day 5-7: Schedule your property visit

Week 2: Deep Dive and Inspections

✅ Day 8-10: Conduct property visit—review 10-20% of units and document findings

✅ Day 8-14: Perform a financial deep dive—verify actual income vs reported numbers

✅ Day 10-14: Complete lease audit—identify concessions and risks

✅ Day 10-14: Review title and survey—check for legal issues

Week 3: Third-Party Reports and Analysis

✅ Day 15-21: Review PCA—understand repairs and long-term capital needs

✅ Day 15-21: Review Phase I—identify environmental risks

✅ Day 15-21: Review appraisal—confirm value supports financing

✅ Day 15-21: Finalize financing—align lender with findings

Week 4: Final Review and Decision

✅ Day 22-25: Compile findings—quantify risks and negotiation leverage

✅ Day 25-28: Make your decision—move forward, renegotiate, or walk away

✅ Day 28-30: Remove contingencies or terminate before deadlines

✅ If needed, request extensions early and proactively

The goal is not just to complete due diligence.
The goal is to make a confident decision before your options disappear.

Resources Mentioned:

• Purchase and Sale Agreement (PSA) – Contract outlining deal terms

• Property Condition Assessment (PCA) – Third-party inspection report

• Phase I Environmental Report – Environmental risk review

• Phase II Environmental Report – Follow-up testing if needed

• Appraisal – Independent valuation

• Title Commitment and Survey – Ownership and legal verification

• CREI Partners: https://www.creipartners.com/

• Schedule a Free 30-Minute Consultation: https://calendly.com/shelbi-creipartners/30min

• Passive Investor Coaching: https://passiveinvestorcoaching.com/

Ready to Build Your Diversified Passive Income Portfolio?

Let’s create your personalized portfolio strategy together.
Schedule your free 30-minute consultation:
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Disclaimer:

This podcast is for educational purposes only and does not constitute legal, tax, or investment advice. Always consult with qualified professionals before making investment decisions.