When to Let Go of a Deal

[Richard Panier]

Hi everyone,

I've been investing in real estate for about 3 years now and have acquired 15 units by 25. Yet, I currently don't have a property to call my own (I've been living with family.) In December I went into contract for a property in downtown Atlanta, placed a $3,500 EMD. However, closing wasn't until June to allow the seller's daughter to stay in the property until she finished her school semester. Now that I'm near closing seems like issues won't stop arising:

• My debt to Income ratio too high - had the loan put in a friend's name (Quit Claim Deed at closing)
• Found out last minute that friend has a lien due to a car accident (no car insurance)
• Lien ($6,300) needs to be paid off in order for the underwriters to approve the loan

Should I give the loan to the friend to then be able to close the loan or consider it a dead deal (losing my EMD). Not sure if I'm going through loss aversion.