What is the biggest hesitancy with investing?

[Ellison Frick]

I've noticed a lot of investors will pass on a deal they want strictly because their "numbers don't work." When you ask them rehab cost, ARV, etc., they don't really seem to have any response.

Would love to hear about the real hesitancy behind pursing an investment.

[Jimmy Lieu]

Quote from @Ellison Frick:

I've noticed a lot of investors will pass on a deal they want strictly because their "numbers don't work." When you ask them rehab cost, ARV, etc., they don't really seem to have any response.

Would love to hear about the real hesitancy behind pursing an investment.

So glad you posted this! I think a lot of the time "the numbers don't work" is just shorthand for "I don't have enough confidence in my assumptions." If you're unsure about rehab costs, ARV, rents, or the exit strategy, it's a lot easier to walk away than risk making an expensive mistake. Early on, I passed on a few deals simply because I didn't trust my underwriting yet, not because they were actually bad deals. Experience helps, but so does reviewing a lot of deals and comparing your estimates to what actually happens after closing. At the end of the day, I'd rather pass on a good deal than force a bad one because I was overly optimistic with my numbers. Happy to connect and answer any questions you have!