Definition

The period where you pretend to be a detective, an engineer, and an accountant all at once to figure out if a property is a goldmine or a money pit. Spoiler: it's usually somewhere between "fine" and "oh no."

Example Usage

"I did my due diligence. I Googled the address, checked if it was haunted, and asked my uncle who once watched an episode of This Old House." - A very thorough buyer

Related Terms

Advanced

warrants

Options for investors to purchase additional equity at a predetermined price, typically sweetening deals when a startup is desperate or when investors have serious FOMO about missing upside. The financial equivalent of a rain check.

🚀 Startup / VC
Beginner

warm intro

An introduction to an investor or customer through a mutual connection, vastly more effective than cold outreach. The difference between your email being read and being instantly deleted by an EA.

🚀 Startup / VC
Advanced

non-participating preferred

Preferred stock that must choose between taking its liquidation preference OR converting to common and sharing the remaining proceeds—can't do both. The slightly-less-greedy version of investor terms.

🚀 Startup / VC
Intermediate

zoning variance

Official permission to violate local zoning laws for your specific property, obtained by convincing bureaucrats that your unique situation justifies breaking the rules. It's a get-out-of-zoning-jail card that requires political finesse and often attorney fees.

🏠 Real Estate
Intermediate

Bidding War

An auction-style feeding frenzy where buyers throw increasingly insane amounts of money at a house until only one financially reckless person remains standing. The winner gets the house. Everyone else gets therapy.

🏠 Real Estate
Intermediate

goodwill

The intangible asset representing the premium paid during an acquisition over the fair market value of tangible assets—essentially the accountant's way of saying 'we overpaid, but let's call it strategic value.' It sits on the balance sheet until reality sets in and it gets impaired.

đź’° Finance / Accounting

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See “Due Diligence” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

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Intermediate

level set

To ensure everyone has the same (usually minimal) understanding of a situation before proceeding, often because previous...