What Is Go/No-Go Decision?
Go/no-go = buy or pass. You've run deal-analysis, checked investment-criteria, and stress-tested with sensitivity-analysis. The numbers meet your bar. The worst case is acceptable. You go—make an offer. Or they don't. You no-go—walk. In Cleveland, an investor spent 3 hours on a 4-plex. Cash-on-cash-return 5.2%, below his 6% min. Sensitivity-analysis showed 10% vacancy would push cash-flow negative. No-go. He moved to the next deal. No second-guessing.
The go/no-go decision is the final call on a deal—buy (go) or pass (no-go). It's the output of deal-analysis, investment-criteria, and sensitivity-analysis.
At a Glance
- What it is: Final buy or pass call
- Inputs: Deal-analysis, investment-criteria, sensitivity-analysis
- Why it matters: Closure; prevents analysis-paralysis
- Use it for: Every deal
- Rule: Make it. Then act or move on.
How It Works
The funnel. Deal-flow → criteria filter → full analysis → sensitivity-analysis → go/no-go. Most deals exit at criteria. Few reach analysis. Fewer reach go/no-go.
Go. Numbers meet your bar. Worst case is acceptable. You're ready to act. Make an offer. Negotiate. Close. Don't linger—deals have a shelf life.
No-go. Numbers don't meet your bar. Worst case is unacceptable. Criteria aren't met. Walk. No offer. No "maybe if." Clear no. Frees you for the next deal.
Document it. Note why you went or passed. "No-go: CoC 5.1%, below 6% min. Vacancy sensitivity too tight." Builds pattern recognition. You'll see similar deals faster next time.
Revisit? If the deal changes—price drop, seller concession—you can re-run. But don't re-run the same deal 10 times hoping the math changes. Make the call and move.
Real-World Example
Ava in Memphis. She analyzed a 4-plex. Acquisition-cost $396,200. Total-investment $450,200 with rehab. Base cash-flow $7,800. Cash-on-cash-return 1.7%—terrible for cash-flow. But net-yield was 6.3%. Appreciation play. Her criteria allowed equity plays if dscr > 1.15. DSCR was 1.22. Sensitivity-analysis: 12% vacancy still kept dscr above 1.0. Go. She offered $378,000. Seller countered $382,000. She accepted. Closed in 32 days.
Pros & Cons
- Clear closure
- Prevents analysis-paralysis
- Frees mental bandwidth for next deal
- Wrong call possible—mitigate with solid analysis
- Can feel final—it is. That's the point.
Watch Out
- Emotion: Don't go because you're tired of looking. No-go because you want it. Stick to the numbers and criteria.
- FOMO: Another deal will come. No-go and move on.
- Re-analyzing: One re-run if facts change. Not 5.
Ask an Investor
The Takeaway
Make the go-no-go-decision. Go = act. No-go = walk. Document why. Don't linger. The next deal is waiting.