This is the first and most basic step in the due diligence process. Understanding the investment strategy involves identifying whether the investment opportunity aligns with your personal financial goals, risk appetite, and long-term investment plan.
In this stage, you should identify the type of real estate property in which you plan to invest, understand the geographic location of the property, and analyze the projected returns and associated risks. This will help you determine whether the opportunity meets your financial expectations and requirements.
If it doesn't align with your objectives, then it might not be worth exploring further. Always remember that the real estate market is vast, and there are countless opportunities available, so don't hesitate to move on to the next one if necessary.