3 Reasons Why You Should Walk Away From A Deal

As an investor, it's important to remove emotions from the deal-making process. Knowing when to walk away from a deal is an important skill to have to be able to scale your portfolio effectively. In this episode, we give you 3 reasons to stop negotiations to save yourself from future headaches - even if it means absorbing sunk costs.  --- Transcripts   Emil: Hey everybody, welcome back to another episode of The Remote Real Estate Investor. My name is Emil Shour and my co hosts today are,   Tom: Tom Schneider   Michael: and Michael Albaum.   Emil: And in today's episode we're going to be talking about deals that we've walked away from. So we've gotten into contract on a property but something came up during inspections or during escrow and we decided to walk away from the deal so we're gonna review what happened, the lessons learned and some insights that you can take away and use in your deals. So let's get into this episode.   Alright guys what's going on anything new in your personal real estate investing careers?   Tom: Yeah, I'll go first. So not a lot on the investing front just quite a bit of home renovation stuff so working on the homestead but you know, still using some of the fun mechanics or fun tools of the real estate investing trade like pulling money with a HELOC, but right now more just investing in myself investing in my personal house working on a kitchen remodel and some structural foundation stuff and busy on that front not a lot of the remote investing side right now.   Michael: What are you doing on the structural foundation stuff that sounds heavy?   Tom; Yeah, right. This is like one of my like, pieces of advice I give to people in the academy is like you know, stay away from foundation stuff, you know, it's a big red flag. Well fortunately, I am family friends with a concrete contractor, really reputable guy in the local area that I live in. So I just one of the corners of the houses started sinking a little bit I live in the hills, suburbs around San Francisco and one of the corner of the house dropped like two inches down. So when I'm like kicking a soccer ball with my son, you know, the ball just starts running down to the corner of the house and it's kind of thinking this is kind of an issue and we're planning to stay here for a little bit longer. So let's address that stuff.   So it's crazy they did these like 1415 foot holes in the ground to get to the bedrock and they fill it with concrete jack the house up a little bit left the house up a little bit and they are in the process of pouring the concrete into these gigantic holes that are the new piers that will be supporting the house.   Emil: I've never seen this process and this videos   Tom: Yeah, I mean just like you think of like piers you know, we're like going over a lake like these long metal you know, whatever piers it's like the same thing with the house they did they just jacket right into the bedrock like I was thinking they were gonna have to do all these like retaining walls and stuff like that along the side of the hill, but nope, just piers, giant holes in the ground, filling them up and jacking the house up. Yeah, I'll share some some videos in the show notes.   Michael: You should put a time capsule into the concrete so that way, when in 150 years, when it's to race, someone will find it.   Tom: That's a great idea. There's probably some time right now.   Michael: Yeah. So my friends were remodeling their bathroom and they took out down to the studs, and they found a beer can from 19 like 52. With that someone had put in the stud in the wall. I was like, Oh, you guys gotta leave something from 2020 now.   Tom: Yeah. I love it. Love it. Love it. Love it. So that's what I'm doing not real estate related, or investment related. I'm going to pass the hot potato off Emil. Go ahead. What's going on?   Emil: What is going on with me, I think I've been talking about property management changes. Luckily, those are both done. So