How to Save Your Real Estate Deal

Reviving a Dying Deal

Real estate investing can be an incredibly rewarding venture. In fact, it’s birthed more millionaires than any other industry. That being said, it’s not without its challenges. Along your journey, you will have deals that seem solid at first but can sometimes teeter on the brink of collapse due to unforeseen obstacles.

Knowing why deals fall apart and how to overcome obstacles is a crucial skill. In this post we’ll explore several ways to do so, including how The Hard Money Co can assist when needed.

Why Deals Flounder: Most Common Obstacles

1. Financing Issues
   One of the most common reasons deals fall apart is trouble with financing. Traditional lenders often have stringent requirements, and last-minute loan denials or delays can derail a deal entirely. This is especially true for investors who require quick access to capital to close on distressed or undervalued properties.
2. Inspection Problems
   Unexpected issues uncovered during the property inspection can scare off buyers or lead to renegotiations. Structural problems, pest infestations, or code violations are just a few examples that can halt progress.
3. Title Issues
   Discovering liens, unpaid taxes, or other title defects can complicate the transaction and delay or prevent closing.
4. Appraisal Discrepancies
   If the property appraises for less than the agreed-upon purchase price, it can create financing challenges, especially with conventional lenders who rely on appraisals to determine loan amounts.
5. Seller or Buyer Backing Out
   Emotional decisions, buyer’s remorse, or unforeseen circumstances can cause either party to walk away from the deal.

How The Hard Money Co Can Help

Well, simply put: we close deals. At The Hard Money Co, we specialize in providing flexible, fast solutions for real estate investors facing challenges like those listed above.

1. Quick and Flexible Financing

The Hard Money Co offers speed and flexibility that traditional banks cannot match. If your conventional financing falls through, we can provide the capital you need to close quickly. Since our loans are asset-based, approval is primarily based on the value of the property rather than the borrower’s credit score or income.

2. Funding for Repairs and Renovations

If inspection issues are threatening the deal, we can include funds for necessary repairs. This allows you to address problems proactively and preserve the value of the property, making it easier to resell or refinance later.

3. Flexibility with Appraisals

The Hard Money Co has an appraisal team in-house, decreasing turnaround time for approvals. Again, we base our loan amounts primarily on the after-repair value (ARV) of the property, giving you more flexibility when discrepancies arise.

4. Keeping the Deal Moving

We understand the time-sensitive nature of real estate deals. Our streamlined processes and focus on the property’s value rather than the borrower’s financial history can keep deals from falling apart, even under tight deadlines.