What's one deal you passed on that you still think about?

Question

Something I've been thinking about lately is how investors decide when to walk away from a deal.

Sometimes the numbers look good, the location makes sense, and there's real potential. But something just doesn't feel right.

Maybe the inspection revealed more than expected, the seller wouldn't negotiate, the financing didn't line up, or the timeline was too tight.

And then there are those properties you pass on, only to see someone else buy them and make the deal work.

I think knowing when to walk away is just as important as knowing when to make an offer.

Curious to hear from investors who've been doing this for a while.

What's a deal you walked away from, and looking back, are you glad you did or do you wish you'd taken the risk?

David Krulac · Answer

@Frankie Vozzi I never lose sleep on the deals I didn't do. The reason... Deals are like buses, you miss one another one comes by soon enough and if you wait long enough the same deals comes back!

Joe Villeneuve · Answer

None. That's not to say that I might have passed on a deal that I could have made money on. I just don't look back. I see know point. If I passed on a deal that would have worked and someone else made it work,...good for them. There are a lot of deals out there, and a lot of REI looking for them. I don't worry or even think back on any deals I might have missed since I'm only working forward.

Matthew Morrow · Answer

@Frankie Vozzi I don't lose much sleep over the ones I passed on. Sometimes the best deal is the one you walk away from. The ones I'd worry about are the deals where you get attached and stretch the numbers to make it work. If you passed because it didn't pencil at a conservative value, that's usually the right call, even if someone else makes it look good later.

Frankie Vozzi · Answer

Jimmy, haha, I bet those 2008 prices are hard to forget! Looking back, there were some incredible opportunities for anyone who had cash ready. Were you actively investing back then, or is that something you wish you'd gotten into sooner?

Jimmy Rojas · Answer

Many cash deals on the 2008 financial crisis 🤣

Frankie Vozzi · Answer

Matthew, exactly. Getting emotionally attached to a property is probably one of the easiest ways to turn a good opportunity into a bad investment. If you have to keep adjusting the numbers just to justify buying it, that's usually your answer right there. Appreciate you jumping into another discussion!

David Krulac · Answer

@Frankie Vozzi There was a property that was right next to one I already owned. Three times I tried to buy it, the first 2 somebody else bought it, the third time I bought it for a price I was comfortable with. And I was som comfortable that at the same time I bought the property on the other side, so that I had 3 properties in a row.

Joe Villeneuve · Answer

"...the same deal comes back"

I had to laugh at that one...it's so true. Sometimes, when you don't negotiate against yourself, you win when you let the sellers negotiate against them selves.

Frankie Vozzi · Answer

That's a good point, Joe. Sometimes being willing to walk away is what gives you the strongest negotiating position. Especially when the seller realizes you're not going to chase the deal at any price.

Frankie Vozzi · Answer

David, I like the bus analogy, especially the part about the same deal coming back around. Sometimes a seller needs a little time to realize where the market actually is. Have you had a deal come back to you months later at a better price than your original offer?

What's one deal you passed on that you still think about?

What's one deal you passed on that you still think about?

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