Rushing into deals.

[Anthony Vespa]

Me and my brothers have decided it was time to sell a three family property we had in Brooklyn (no mortgage) and expand our real estate holdings into five multi family buildings in florida. The building was sold in four weeks. (hot Brooklyn market) so now we wait and wait for closing and Requests from the buyer and time passes. In the meantime we are anxious about buying our first 1031 exchange deal and we are searching the net and found a property. We found a good deal (not great) but good enough to net around 6 to 7 %. So we made an offer and it was accepted after some negotiations. This is why I titled this rushing into a deal. Instead of selling this property in Brooklyn we should of taken all the cash out first and began buying our investments first then sold the building off if we wanted too. In the meantime here we have our first deal which because of timing the seller is not willing to wait for a 1031 exchange so forced us to apply for funding. I am in a panic now because of timing. Our closing date with the seller is may 31st. I am hoping to get an extension. Long short of this, it would of been a lot easier to leverage out something we had right under our noses and use that to purchase this property. Think before you act. I am a big believer in that and here I am rushing into a deal without thinking it through.