250: Case Study: $1M Short on Closing Day with Josh Cantwell
If you've been a real estate investor for any length of time, you probably know that every deal doesn't always go according to plan. Problems can arise at any point in the process, but with the right team and the proper mindset, you'll find a way out to make it work and get the deal done. And that’s what today’s episode is all about.
In November of last year, we bought and closed a 50 unit property in Lakewood, Ohio, and another 170 unit property in Cleveland. We called the deal 220 Brookside Shady. We agreed to purchase it for no more than $14.85 million and raised the money with the intention of closing on December 30th.
On December 29th, at 9:16am, we found out that due to a change in the appraisal value, we were going to be short by $933,000. This meant that we had one day to raise an extra million dollars to save $200,000–and the deal. No problem, right?
In this episode, I will break down exactly what we did to avoid missing out or overpaying on this deal. I'll also share what we learned from this real-life case study to help you apply them as you work through the challenges, setbacks, and inconveniences you face as you close your own deals.
Key Takeaways with Josh Cantwell
- Why it was important to close the deal by December 31st.
- How the appraised value came up $933,000 less than anticipated, and the steps we took to cover the difference.
- Why appraisals typically come in short and how you can prepare for this.
- The value and peace of mind that comes with raising more than what you need for your deals.
- How we increase our credibility with brokers and real estate agents by closing deals quickly.
- A reminder that the relationships you build with private investors can help you out of tough situations.
Want the Full Show Notes?
To get access to the full show notes, including audio, transcripts, and links to all the resources mentioned, visit https://acceleratedinvestorpodcast.com/250
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