Due Diligence Helps Manage Risk

What is due diligence? 

(1) The care that a reasonable person exercises to avoid harm to their person, finances or that of another person. [1]

(2) The process of obtaining and evaluating details about the subject, entity, or investment opportunity before making a business or investment decision.

(3) It is reasonable steps taken by a person in order to satisfy a legal requirement especially in buying and selling real or personal property.

Due diligence is easier now than ever before because Google, Bing, and other search engines increase access to public records and other relevant information about a subject, an entity or an investment opportunity. Although ubiquitous, these resources do not replace the value of gut instinct and recommendations of a friend or associate when making major decisions.

Some people are blessed with sufficient income to make investments in excess of six figures. With that much money at stake it is wise to hire a professional investigator who is trained and experienced in locating the information necessary to make investment decisions. “The best predictor of future behavior is past behavior” applies in most cases.  The best way to avoid loss of money is to proactively identify potential problems, and the best way to do that is to obtain and evaluate background information on the seller, promoter or initiator, and other entities involved.

A review of history suggests that the “Oil Boom” occurring in certain states in our country will cause unscrupulous individuals to surface and propose limited partnerships or other fraudulent investment schemes. These individuals will be armed with attractive, professional looking prospectus and presentations designed to entice prospective buyers, investors, and customers. Some of them will use religion as common ground for developing a relationship with the prospect, and others will seek to impress with an invitation to a dinner presentation at an expensive restaurant. Don’t be fooled. These activities are carefully crafted to qualify you as a target and gain your trust and access to your money. How will you avoid the trickery?

Before you make any major investment decisions, hire an investigative expert to thoroughly look into the individuals and the entities involved. The cost of the research is minimal compared to the money it can save you for a better, more secure investment. It can also spare you years of headaches and the cost of lawyers to sue for the return of your money from a fraudulent investment. Just as important is the fact that law enforcement in most states are overwhelmed by property crimes and fraud in their jurisdictions. Law enforcement investigations and prosecutions are very selective and only a few prosecutors can handle fraud cases. Therefore, it is incumbent on you, the individual investor to protect yourself. Sage Investigations can help.

When you need to ensure your investment is a sound investment call Sage Investigations at (512) 659-3179 to conduct a professional due diligent investigation.



1.    Merriam Webster Dictionary