It is never too late to gain quality information from a DDA (Dead Deal Autopsy). However, somewhere between two-thirds and three-fourths of all deals are done after the original offer is turned down. Hence, resubmitting offers on a regular basis is great strategy to prevent a Dead Deal in the first place.
Gathering information about what could lead to future done deals or gaining a clearer understanding of why a deal was lost may be the “secret sauce” to success in real estate investing.
Obviously, when a deal is lost it can be invaluable to determine who got the deal, at what price and why. In almost every case, it is easy to find out who got the deal. Stopping by the property on lost rehab deals shortly after losing the deal could afford an opportunity to find out who now owns the property and just what kind of rehab they are doing. Getting business cards from contractors and sub-contractors is usually a snap, and the quality and speed of their work may be why you were outbid.
A little investigation could also uncover how the purchaser presented a higher bid but still made money. Maybe they saw how to open a kitchen, add a bathroom, or dynamically enhance the curb appeal.
Once you get in contact with the new owner, talk to them and see if they will share critical information on how they are able make a profit bidding higher than you. It is amazing the information people will share if asked.
On rental units, the concept is the same. Skilled investors will often show you how slight improvements to the rental units can make a large increase in the value of a property. For example, if rent can be increased by $100.00 a month, the property value goes up $10,000.00.
What you learn may not be what you want to hear but it will be what you need to know. If you do enough DDAs you will find there were cases in which you never had a chance. Your offer was only there to keep their favorite buyer honest. Wholesalers can lose deals to someone who just waits for your contract to expire.
In summary, mastering thorough DDAs will open doors to success. You will, one, meet the key people who can help you in the future and, two, understand how to correct your mistakes so you can win the next deal and make money on it.