If you’re an investor or borrower, you’ve probably been there—when a deal that seemed smooth suddenly hits a snag right before closing. I just had one of those days myself, and several of our borrowers experienced the same. When things start going sideways, the natural reaction is often to freeze, panic, or make rash decisions. But here’s the truth: staying calm can save your deal.
A Real-Life Example
One of our borrowers was closing on a house that was supposed to be delivered vacant. Funds were already wired, and everyone thought it was a done deal. But during the final walkthrough, they found the seller had left a ton of stuff inside the unit, in common areas, and even in the backyard.
The initial reaction? Panic. Thoughts of backing out flooded the conversation. After all, no one wants to inherit a property with leftover tenants—or worse, a cluttered mess from the old owner.
How We Turned It Around
Instead of rushing to a decision, we took a deep breath and strategized. The sellers just needed a little more time. So we negotiated a holdback—a portion of the funds would be withheld until the sellers cleared the property. They also signed a release stating that anything left behind after a certain date would be considered trash.
This solution turned a potentially lost deal into a win-win:
- Our borrower got clear possession.
- The sellers got a little extra time.
- Everyone walked away with a plan instead of panic.
Key Takeaways for Investors
When deals start to go wrong, here’s what to do:
- Don’t panic. This is easier said than done, but it’s critical.
- Call your trusted advisers: lenders, realtors, mentors—anyone you trust to help you see the bigger picture.
- Take a deep breath and step back. Sometimes a night’s sleep or a little distance can help you think more clearly.
- Get creative with solutions. Negotiations like holdbacks or possession releases can salvage deals that seem doomed.
Final Thoughts
Real estate investing isn’t always smooth sailing. When the unexpected happens, the worst thing you can do is panic. Calm, clear-headed problem-solving is what turns tough deals into success stories.
If you ever need advice or want to talk through a deal, don’t hesitate to reach out. We’re here to help you keep moving forward.