Have You Ever Had to Pass on a Good Deal Because Your Money Was Tied Up?

Question

One thing I’ve noticed when talking with real estate investors is that sometimes the biggest challenge isn’t finding a profitable deal. It’s having access to capital when the opportunity comes along.

You might have money tied up in a renovation, waiting on a property to sell, or already committed to another project.

Meanwhile, another good deal comes across your desk.

This is why I believe having multiple funding options available before you need them can make a big difference.

Whether it’s a business line of credit, 0% APR business credit cards with introductory periods of 6–12 months, or other business financing, having access to additional capital can help investors manage eligible project expenses without tying up all their available cash.

Of course, the right funding depends on the deal, the cost of capital, and your financial situation.

I’m curious how other investors handle this.

Have you ever passed on a profitable deal because your capital was tied up in another property? Or do you already have a strategy in place to handle multiple deals at once?

Mark Updegraff · Answer

@Nicholas Floyd , I’d look at capacity alongside the money. If the first renovation runs long, who handles the second one—same contractor, same crew, same person making every decision? Additional funding doesn’t remove those conflicts. I’d want a realistic schedule and someone accountable for each project before treating access to more capital as the answer. Passing can be the sensible move when the next deal depends on everything already underway finishing perfectly.

James Jones · Answer

Honest answer: capital is not my bottleneck, deal flow is. I run BRRRR on single-family in Memphis. Buy under $100K, rehab it — a lot of mine are conversions, 2/1 to 3/1 or 3/1 to 4/2 — rent it, then refinance on a DSCR loan at 70 to 80 percent LTV on a 30-year amortization. The refi pulls most of the cash back out, so the same dollars can work on the next house. That only works because the buy is strict: ARV $180K to $265K and rent that clears the 1% rule, $1,395 to $1,950 on Section 8 for 3BR+. At 236 properties, I pass on deals every week. Not because the money is tied up — because the deal doesn't fit the box. If the numbers don't work at the low end, I let somebody else have it.

Have You Ever Had to Pass on a Good Deal Because Your Money Was Tied Up?

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