Tommy DobczykOpportunity Zone Advisor, OZ Wizard · Director of Development | Certified Opportunity Zone Advisor

Failed Deals: Why Investors Walked Away From Millions #shorts

30 May 2026 · 1 min

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In this short conversation, Tommy Dobczyk reviews two previously failed industrial land deals—CRG, which spent $2 million in due‑diligence before walking away, and Placo, which was in escrow for $15 million and also walked. The failures are attributed to unrealistic cost‑plus‑interest‑plus‑rent assumptions. Dobczyk argues that the seller’s narrative does not reflect reality and that the current risk structure is unbalanced: the seller wants zero risk while the buyer would be taking all of it. He asserts that the buyer’s negotiating position is strong, proposes a revised offer of about $5 million (based on a market benchmark of roughly $1 million per acre for industrial land), and suggests inviting other offers rather than accepting the current terms. The dialogue emphasizes the importance of proper risk allocation, realistic valuation, and a disciplined negotiation posture before committing to the deal.

Are you in the deal room?
This has already failed twice. From your conversation of due diligence, CRG spent $2 million and walked. Placo was in escrow for $15 million and walked. Why? Cost plus interest plus rent assumptions didn't work. So this isn't— it's still industrial land today, and it probably could stay that way. The seller's story is not reality, right? So what this means for your negotiation. You're taking all the risk. Seller wants zero risk. And so our position is now very strong. Now the upgrade to the email is going to say what you have below right there.
Right. Do you want me to read it or it's too long?
I think, I think it just, I think it just, it does, it does a good job of explaining all this stuff. Right. Okay. Now, as long as it's explaining that we're not interested in taking on all the risk. Then they— then we should invite them to take other offers. Okay. Right. Because again, we're like, if we're going to— if we're going to be serious about it, it's only worth $5 million right now. Yeah. The properties down there are only going for $1 million an acre at most. Okay. So, so yeah, it's not a fair deal.
Not a balanced risk structure. Now we need to only do it if it makes sense.