Something I’ve been noticing more often lately:
A lot of deals don’t die because the rehab was underestimated or the ARV was wrong.
They die because the deal never matched the buyer’s risk tolerance to begin with.
Same property. Same numbers.
One buyer moves forward without hesitation.
Another walks immediately.
Interior access, occupancy risk, capital structure, timeline sensitivity, exit expectations — those factors seem to matter just as much as the math, but they often don’t get pressure-tested early enough.
I’ve been spending more time asking:
“Who is this deal actually for?”
before worrying about whether it technically pencils.
For those actively closing deals:
At what point do you decide a deal just isn’t the right fit — even if the numbers look workable on paper?
Wholesaler · Portsmouth NH · Member since 2019 · 208 posts · 95 votes
8mo
Hey Robert, at the end of the day, price is what sells the deal. And something to be aware of is that in some cases, the honest answer is that buyers would need to be paid to take the property because it is effectively worth nothing. Now, assuming the property does have value, this is how we handle it on the disposition side. We get at least three real offers from buyers if no buyer is hitting our asking price. For example, if we are asking $100,000 and buyers are consistently coming in between $70,000 and $80,000, we wait until we have at least three offers before going back to the seller to renegotiate. This lets you be confident you're not leaving money on the table and gives you the confidence on what the property is truly worth. Ideally the more offers you get though, the better.