Skip to main content

Knowing When to Walk Away From a Real Estate Investment

By October 21, 2018June 29th, 2023Blog, Hard Money Lenders
hard money loan in San Francisco

One of the most powerful advantages of leveraging the skill set and expertise of a hard money lender is having a team of proven experts on your side. Lenders from traditional banks have a well-earned reputation of letting their clients fend for themselves –after taking three months or more to release the necessary capital.
In this issue, the professional hard money lenders at the PB Financial Group will discuss when it’s wise to walk away from a real estate investment deal.

When to Walk Away From a Deal

Don’t get us wrong: we want your real estate investment to work out just as much as you do, and our primary goal is to make it happen. The fact of the matter, however, is that we are experts at what we do, and we realize there are times when it makes better financial sense to walk away from one deal and move on to the next opportunity.

This approach – coupled with our knowledge and experience – can guide us away from an investment that can put one in a financial hole, and toward one that is a far more profitable opportunity.

When Vacancies and Turnover are High

In many instances, a negative cash flow – income generated by renters – can make a seller eager to sell. It pays, however, to look in-depth at the causes of a negative cash flow. If units are sitting empty for an extended period of time, it may be a sign of a bigger issue.

Uncertainty of Income Flow

Few deals are perfect, but the best ones produce a steady income flow almost immediately. If a large payoff is “promised at some point down the road,” the deal is probably not a good one.

Examine the Local Pool of Potential Tenants

The expert hard money lenders know how to obtain and analyze data and carefully examine the local tenant pool which is a vital part of your due diligence. Things to pay attention to include the economic conditions of the neighborhood (which affects a tenant’s ability to pay) and the number of police complaints near the property.

The highly experienced and reputable professionals at PB Financial Group provide the opportunity of cashing in on your potential investment property. We know that time is of the essence; especially in real estate, hence make it possible via a hard money loan in San Francisco to achieve your goal. For further information or to schedule a consultation please contact PB Financial Group at 877.700.3703 or visit to learn more.

PB Financial NMLS #357614/CalBre #01522495

Leave a Reply

Close Menu