Episode Description
In this episode of Building Passive Income, CREI Collin breaks down the go no-go decision and how it impacts your real estate investment.
The go no-go decision is the point where you evaluate all due diligence findings and determine whether a deal still meets your investment criteria.
Learn how to apply a structured framework, assess risk, and decide when to proceed, renegotiate, or walk away.
What You’ll Learn
What the go no-go decision is and when it happens
How to apply a structured decision framework
How to consolidate due diligence findings
How to re-underwrite a deal using verified data
How to evaluate deals against your investment criteria
How to assess and categorize risk
When to proceed, renegotiate, or walk away
Common mistakes investors make in decision-making
Key Takeaways
What is the Go No-Go Decision in Real Estate?
The go no-go decision is the final evaluation before moving forward with a real estate acquisition.
It is based on verified data, updated underwriting, and alignment with your investment criteria.
The Five-Step Decision Framework
Consolidate all due diligence findings
Re-underwrite the deal based on verified data
Evaluate the deal against your investment criteria
Assess and categorize the risks
Determine your path forward
This framework helps ensure that decisions are structured and consistent.
Your Three Options
Proceed to closing if the deal meets your criteria and risks are acceptable
Renegotiate if updated findings change the economics or risk profile
Walk away if the deal no longer meets your criteria or cannot be improved
Avoid Common Mistakes
Do not rely on initial assumptions instead of updated data
Do not ignore new risks identified during due diligence
Do not allow time or money already spent to influence your decision
Stay focused on current information and future outcomes
Why Discipline Matters
The go no-go decision requires separating past effort from future performance.
Discipline in evaluating deals helps protect capital and improve long-term results.
At CREI Partners, decisions are based on verified information and defined criteria.
How This Impacts Your Investment
This decision determines whether a deal moves forward or stops.
A disciplined process helps ensure that only investments aligned with your strategy and risk tolerance are pursued.
Episode Highlights
[00:00] Introduction to the go no-go decision
[01:00] When the decision happens
[02:00] Step 1: Consolidate findings
[03:00] Step 2: Re-underwrite the deal
[04:15] Step 3: Evaluate against criteria
[05:30] Step 4: Assess risk
[06:45] Step 5: Determine next steps
[07:30] When to proceed
[08:15] When to renegotiate
[08:45] When to walk away
[09:30] Common mistakes
[10:30] Improving decision-making
Resources Mentioned
Investment criteria framework
Cash-on-cash return calculations
Internal rate of return (IRR)
Equity multiple
Net present value (NPV)
Risk assessment matrix
Due diligence summary template
Master due diligence checklist
Let’s Talk
If you are evaluating a deal and want help making a go no-go decision, let’s talk.
Schedule a call with our team:
https://calendly.com/shelbi-creipartners/30min
Subscribe & Review
If you’re enjoying Building Passive Income, subscribe and leave a review. It helps more investors find the show and make better decisions.
Next Episode
Episode 64: Renegotiating Deals – How to Adjust Terms Based on Findings
Disclaimer
This podcast is for informational purposes only and should not be considered legal, tax, or investment advice. Always consult with qualified professionals before making investment decisions.
Keywords
go no go decision real estate, real estate deal decision, due diligence decision framework, real estate underwriting, investment decision real estate, risk assessment real estate, when to walk away from a deal
Subscribe to our newsletter so you never miss out on new investment opportunities, podcasts, blogs, news and events.