
Episode #651
SS286: When to Walk Away from a Deal
What if the best real estate deal you ever make is the one you walk away from? In this Strategy Saturday episode, Charles Carillo explains when multifamily real estate investors should stop trying to make a deal work and walk away instead. A bad deal doesn’t become a good deal just because you’ve already invested time, money, and energy into it. And when a property only works under perfect assumptions, small changes in expenses, financing, vacancies, or repairs can quickly destroy your projected returns. In this episode, Charles covers the major warning signs investors should watch for during underwriting and due diligence, including: • When the numbers simply don’t work • Why tight cash-on-cash margins leave little room for mistakes • Debt service coverage ratio concerns • Overreliance on aggressive rent growth • Inconsistencies between financial statements and bank records • Missing management fees, reserves, or vacancy assumptions • Hidden deferred maintenance and major repair costs • Problem tenants and property-level issues • Why investors should verify information before submitting an offer • When best-case underwriting assumptions are a signal to walk away Successful real estate investing isn’t just about knowing which properties to buy. It’s also about developing the discipline to recognize when the risk no longer justifies the potential return. Links Referenced in Episode: - SS134: What is Debt Service Coverage Ratio (DSCR) - https://youtu.be/W6eB7NjThiY Connect with the Global Investors Show, Charles Carillo and Harborside Partners: ◾ Setup a FREE 30 Minute Strategy Call with Charles: http://ScheduleCharles.com ◾ Learn How To Invest In Real Estate: https://www.SyndicationSuperstars.com/ ◾ FREE Passive Investing Guide: http://www.HSPguide.com ◾ Join Our Weekly Email Newsletter: http://www.HSPsignup.com ◾ Passively Invest in Real Estate: http://www.InvestHSP.com ◾ Global Investors Web Page: http://GlobalInvestorsPodcast.com/






