Searchfunder member
In self-funded searches, broken deal costs can quickly add up. For those who have faced this challenge, what strategies have worked best for you to reduce these costs? How do you approach due diligence and negotiations to minimize risks without cutting corners? Practical tips on handling these expenses would be greatly appreciated.
Amazing question. My number 1 advice is not to invest in due diligence before you have signed a bidding loi with a penalty clause for seller if they decide not to close (is basically a deferred payment in 90 days). In the Bidding LOI you should write a clause that allow you not to buy. If new pieces of info are discovered in due diligence and the seller intentionally didn't share them before, the penalty will also apply.
Last year I spend around 20k in due diligence in failing deals (fuck haha) and this year i have a full time team ready to deliver so, if you are a self funded searcher and you want our support for free, just join our private community and lets talk (since we are actively investing):
https://www.skool.com/selffunded-room-5168/about
#selffunded #gettingstarted
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