Are Good Deals Just Harder to See Right Now?

Question

Feels like investors are in a market where deals aren’t really gone… they just don’t look as obvious as they used to.

Stuff that would’ve gotten multiple offers a few years ago is now getting picked apart or passed on.

If I’m being honest, the adjustment is probably just shifting away from waiting on “clean” deals and starting to recalibrate what actually works in today’s numbers.

A lot of it comes down to running more deals, staying closer to active flow, and not judging everything off old expectations.

Feels like what people are calling “no deals” might just be deals that don’t fit the old way of underwriting anymore.

Curious if anyone else is seeing it that way.

Caleb Brown · Answer

I would say deals are tighter now. Deals that have margin and check the boxes do still have a ton of interest. Deals that are overpriced or in rougher areas sit.

G. Brian Davis · Answer

I think there's a lot of truth to that.

As a co-founder of a co-investing club, we review deals from operators across the country, and one thing I've noticed is that many investors are still comparing today's opportunities to what worked a few years ago.

The deals are different now. Financing is different. Seller expectations are different. Investor expectations need to adapt too.That doesn't mean lowering standards. It means underwriting based on today's reality rather than yesterday's market. The investors who seem to be doing the best are the ones staying active, reviewing lots of opportunities, and adjusting their assumptions as conditions change.