Ask Me Anything - Saying No To Deals

The Real Estate Espresso Podcast

Ask Me Anything – Saying No To Deals

Spotify Google Podcast Apple Podcast Subscribe via RSS Leave a Review

AMA – Saying No To Deals

This blog covers another AMA episode where I take time to answer your pressing questions. One such intriguing question recently posed by Chris pertains to the difficulties of saying no to a seemingly attractive project.

The Art of Saying No to Deals

While an appealing location and attractive purchase terms have a certain allure, it’s crucial to remain objective and consider the possible risk associated with the investment. This means maintaining a clear understanding of our criteria and acknowledging that some issues may indeed be deal-breakers. Such issues may arise in the course of the due diligence process. The essence of the matter here is to underline the importance of the discipline and psychology encapsulated in investing. An appreciation of these elements ensures that desperation doesn’t cloud judgement or blur the lines of reality.

Surmounting the Emotional Hurdle

It’s important to note that emotions can color the decision-making process, and while attaching unquestionable sentiments to a deal may be tempting, it’s best avoided. An essential way to counterbalance such biases includes involving an emotionally detached team member during the due diligence process. This objective stance will permit the accurate evaluation of possible risks, regardless of how unlikely they may seem. For effective risk assessment, it’s crucial to unbuckle the emotional ties and view these potential risks as impact and likelihood.

Risk	Impact	Likelihood
Risk 1	…	…
Risk 2	…	…
Risk 3	…	…

When we incorporate these foreseeable risks into the plan and treat them as certainties, the project starts making sense even with these embedded risks. It produces a more balanced economic model rather than an overly optimistic one. Accepting the possibility of unexpected factors and surprises ensures that we remain emotionally disconnected until the project is committed. At that point – having invested ample time and resources – emotional attachment is permissible and even encouraged given our commitment to ensuring the project’s success.

Opportunities Abound

To Chris and anyone else struggling to say no to enticing projects, know that opportunities in real estate are abundant. The key to unlocking these deals involves proper market positioning. When you’re well positioned, deals will gravitate towards you. Therefore, it’s crucial to focus on your market positioning as this will influence the quantity and quality of opportunities that cross your path.

Thank you, Chris, for your fantastic question. For everyone at home, have an awesome rest of your day and go make some great things happen. We’ll connect again tomorrow.

Stay connected and discover more about my work in real estate by visiting and following me on various platforms: