---
title: Five Deal Killers We See Every Month (And How to Avoid Them)
description: Low appraisals, budget surprises, title issues, cash shortfalls, and weak exits. The five problems that stall deals and how to prevent each one.
---

![](https://referralprogram.pkcapital.com/hubfs/raw_assets/public/@marketplace/kalungicom/atlas-theme/images/Logoipsum.svg)

- [PRODUCT](https://referralprogram.pkcapital.com/product)
- [PRICING](https://referralprogram.pkcapital.com/pricing)
- [RESOURCES](https://referralprogram.pkcapital.com/resources)
- [BLOG](https://referralprogram.pkcapital.com/blog)
- [ABOUT](https://referralprogram.pkcapital.com/about)

SIGN IN GET A DEMO

# Five Deal Killers We See Every Month (And How to Avoid Them)

Low appraisals, budget surprises, title issues, cash shortfalls, and weak exits. The five problems that stall deals and how to prevent each one.

[Christian Groomes](https://referralprogram.pkcapital.com/pk-capital-solutions-llc-blog/author/christian-groomes)

 Sep 30, 2026

---

We see a lot of deals. Most close without a problem. The ones that stall or fall apart usually fail for one of the same five reasons, and almost all of them can be spotted before you sign a contract.

Start 2027 by building these checks into every deal.

## 1. The appraisal comes in low

You underwrote the deal at a $350,000 ARV. The appraisal says $315,000. Your loan shrinks, your cash to close goes up, and your profit shrinks with it.

**How to avoid it:**

- Use comps that are recent, close by, and similar in size, age, and finish.
- Underwrite to the middle of your comp range, not the top.
- Give your lender your comps and a detailed scope of work so the appraiser has the full picture of the finished product.
- Keep enough cash on hand to cover a modest appraisal gap.

## 2. The budget blows up

Walls come down and you find rotten framing, an old sewer line, or wiring that has to be replaced. Your budget jumps 25% and your draws no longer cover the work.

**How to avoid it:**

- Inspect before you close, including a sewer scope on older homes.
- Walk the property with your contractor before finalizing the bid.
- Carry a contingency in the budget.
- Tell your lender early when you find a problem. Reallocating budget lines is much easier before the next draw than after.

## 3. Title or entity problems

An old lien that was never released. A seller going through probate. An LLC whose name does not match the contract. Any one of these can push a closing by weeks.

**How to avoid it:**

- Order title as soon as you are under contract.
- Keep entity documents current and in one folder.
- Make sure the buyer name on the contract matches the borrowing entity exactly.

## 4. The cash is not there

The borrower has enough for the down payment but not closing costs, the first phase of work, and reserves. Or funds arrive in the account the week before closing and cannot be sourced.

**How to avoid it:**

- Budget for all of it: down payment, closing costs, points, the first phase of rehab, carrying costs, and a cushion.
- Keep funds in your account for at least two months before closing, or be ready to document where large deposits came from.
- If you are using a partner's capital, have the agreement in writing and the funds in the entity's account early.

## 5. The exit does not hold up

The flip sits on the market for months. The rent comes in lower than expected and the DSCR refinance does not work. The loan matures before the project is done.

**How to avoid it:**

- Check days on market for your comps, not just sale prices.
- Run the DSCR numbers on day one if a refinance is your exit or your backup.
- Pick a loan term with room for delays, and know what an extension costs.
- Always have a second exit.

## The common thread

Every one of these shows up in the numbers or the paperwork before you close. The investors who avoid them are not luckier. They check the same things on every deal, and they bring their lender in early.

Keep a short checklist of these five items and run it before you sign every purchase contract. It takes less than an hour, and it catches most of the problems that cost investors time and money after closing.

## Get a second set of eyes

If you have a deal you are unsure about, send it over before you commit. We will tell you where we see risk and how to structure around it.

## Similar posts

### Get notified on new marketing insights

Be the first to know about new B2B SaaS Marketing insights to build or refine your marketing function with the tools and knowledge of today’s industry.

![](https://referralprogram.pkcapital.com/hubfs/raw_assets/public/@marketplace/kalungicom/atlas-theme/images/Logo-White.svg)

Company  
1234 5th AVE N.  
Seattle, WA 98101

### Product

- Login
- Overview
- Another one
- Meetings
- Action Items

### Solutions

- Team meetings
- Remote meetings
- Another one
- Functional
- Executive

### Resources

- Blog
- Podcast
- Templates
- Newsletter
- Help center

### Company

- Blog
- Podcast
- Templates
- Newsletter
- Help center

© 2020 Company All rights reserved Privacy Policy

[Powered by Atlas - a B2B SaaS HubSpot theme](https://www.kalungi.com/atlas-hubspot-theme-for-b2b-saas-software)

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Christian Groomes",
    "url" : "https://referralprogram.pkcapital.com/pk-capital-solutions-llc-blog/author/christian-groomes"
  },
  "dateModified" : "2026-09-30T14:38:24.298Z",
  "datePublished" : "2026-09-30T14:38:24.000Z",
  "headline" : "Five Deal Killers We See Every Month (And How to Avoid Them)",
  "mainEntityOfPage" : {
    "@id" : "https://referralprogram.pkcapital.com/pk-capital-solutions-llc-blog/five-deal-killers-we-see-every-month-and-how-to-avoid-them",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : "https://referralprogram.pkcapital.com/hubfs/PKFinalFiles-03.png"
    }
  }
}
```