Why I’m Glad Our Deal Fell Through.

Deals fall apart. It’s a part of business. While the hype of a new prospective deal under contract can get your emotions in a bunch, the cold hard truth is that often times having that deal fall apart, for whatever reason, can be a blessing in disguise. 

One of our most recent deals was on a Turn-Key property that would have cash flowed well under the terms and conditions that we had agreed upon after several days of negotiation. Before hand we had spoken with several lenders and had selected one due to his extremely low down payment requirements. With this in mind we had made an offer on a property we had been working on for several months. After the fact and after the contracts were signed we were blind sided with different down payment requirements that completely ruined the deal. This in part was due to a lack of clarification on both parts from the get go. 

In the moment, we were extremely upset that a seemingly good deal was about to slip through our fingers, but we were determined to salvage it for the sake of our company. After exhausting all possibilities of salvaging the deal, nothing was able to be done. All of the hard footwork would seem like a complete waste to the untrained eye. To us however we were thankful for the experience. 

What we gained out of this experience was worth more than the cashflow we would have made from this deal many times over. It has led us to extensively grow our network of both lenders and outside investors. It has helped us to further refine and define our investment strategy moving forward and has taught us key points to be aware of in the due diligence phase. It is invaluable the benefit being able to reach out to individuals and companies we other wise would not have known of that have added more than we could expect to our growing business. 

Some people would see this as a failure, but those truly invested in real estate (both metaphorically and physically speaking) see this for what it truly is. An invaluable learning experience. While it did simply suck to not be able to add this property to our company, it is important to realize that this is simply a part of the business we are all in. Deals fall through and sometimes due diligence turns up things that are unfavorable. Things happen, but life and business move on. In the words of Richard Branson “Business opportunities are like busses, there is always another one coming”. 

So next time that you feel down for missing out on a deal for whatever reason, remember that there are many more opportunities. It’s vital to take the time to reflect on what went wrong so that you know moving forward how to make things right. Doing so allows you to be able to take even the worst case scenarios and utilize them as powerful tools to continue growth.