New investors often ask the wrong question when evaluating a deal.
They ask, "Is this a good deal?"
Experienced investors ask something more strategic: "Does this deal fit my strategy, risk tolerance, and exit options?"
At Mac Does REI, we look beyond price, comps, and surface-level numbers. A deal only works if the structure, cash flow, and downside protection align. This post walks through how seasoned investors actually decide whether a deal is worth pursuing.
The first filter is control.
A deal does not need to be owned free and clear to be valuable. It needs to be controlled with favorable terms.
We prioritize deals where we can:
Control the property with minimal capital
Lock in long-term fixed payments
Create flexibility in exit strategy
Reduce exposure to market swings
This is why subject-to, seller financing, and wrap structures consistently outperform traditional leveraged purchases.
If a deal does not cash flow, it must have a compelling alternative reason to exist.
Our minimum cash flow thresholds are intentional because:
Cash flow absorbs mistakes
Cash flow protects during vacancies
Cash flow funds future acquisitions
Cash flow reduces emotional decision-making
If a deal cannot realistically produce consistent monthly income, we usually pass—even if the equity looks attractive.
Every deal must have multiple exits.
Before closing, we identify:
Primary exit
Secondary backup exit
Worst-case liquidation scenario
Examples include:
Wrap resale
Rental hold
Refinance
Note sale
Assignment or wholesale fallback
If a deal only works one way, it is fragile. Experienced investors avoid fragile deals.
Price matters less than motivation.
Sellers dealing with:
Foreclosure pressure
Relocation
Inherited property
Tenant fatigue
Financial distress
Are far more open to creative terms than price reductions.
Understanding the seller’s problem allows investors to design solutions that create profit without forcing discounts.
Experienced investors do not chase upside without understanding downside.
We assess:
Payment obligations
Insurance coverage
Title position
Due-on-sale exposure
Market liquidity
End buyer demand
If the downside is survivable, the deal moves forward. If not, we pass regardless of upside.
Holding time affects returns.
Long rehab timelines, extended listings, or uncertain buyer pools reduce deal quality. We prefer deals that:
Close quickly
Resell efficiently
Produce income immediately
Avoid heavy renovation when possible
Speed reduces risk.
A recent DFW opportunity offered strong equity but required extensive rehab and a long resale window.
Instead, we passed and acquired a subject-to deal with minimal equity but:
Locked in a low-interest loan
Created immediate cash flow
Generated a strong down payment on resale
Maintained multiple exit options
The second deal outperformed the first without relying on appreciation.
New investors often:
Overestimate appreciation
Underestimate holding costs
Ignore exit risk
Focus on price instead of structure
Assume best-case scenarios
Experience teaches discipline. Structure creates consistency.
A good deal is not defined by how cheap it is.
A good deal:
Protects downside
Produces income
Offers flexibility
Aligns with long-term goals
At Mac Does REI, we pass on far more deals than we accept. That discipline is what keeps our portfolio stable and scalable.
If you want to learn how to analyze deals the way experienced investors do, connect with Mac Does REI. We are always open to reviewing opportunities, sharing strategy, and partnering on well-structured investments.