We recently walked away from a deal — and there was nothing wrong with it.
Financing was lined up.
The equity raise went smoothly.
Investors were excited.
The park was in a strong location with value-add upside we’ve executed on many times before.
So why didn’t we close?
Because of me.
I’ve been burned badly by an older, non-conforming septic system in the past — and I’m still dealing with the consequences today. That experience changes how you underwrite risk.
This property’s system was functioning today, but the configuration of the site meant that if a failure occurred in the future, there may be no viable path to replacement or compliance.
That’s not a value-add challenge.
That’s unmanageable risk.
The hardest part of this business isn’t finding upside — it’s knowing when the downside is unacceptable, even when everything else looks perfect.
Discipline means saying no, even to good deals.