Failing Forward: Part 4…
Failing fast, failing forward, and learning from others failures has been critical to my growth as a business owner and real estate investor. This is part of my series on Failing Forward, and I hope you walk away with some great strategies (or pitfalls to avoid).
If you followed the first parts of this series (Links to PART 1, PART 2, PART 3), you heard how we resolved multiple issues with a suburban shopping center. This story takes on a different topic: Multi-Family Due Diligence.
Over the Years, I have been grateful for Christopher Grimsley on my construction team many times over. Collapsed Sewer lines can be expensive to deal with, and are easily discoverable during due diligence.
Most of the time, the Seller will deal with these repairs prior to closing if discovered. This is particularly important in older neighborhoods or with commercial properties that have grease interceptors and/or high water volume tenants like hair salons. The most extreme example I have come across, though, was a property where the initial plumbing inspection uncovered that some of the sewer lines ran to the front of the property and connected to the city sewer, and some ran to the back – presumably to an old septic system.
Luckily, Christopher got the plumber out there to scope it all the way to the end, and it turns out it was just dumping it straight into the backyard! No Thank You, we passed on this one…