The Deal That Almost Broke: Lessons from Corbett Street

When two lenders pulled out and the numbers looked impossible, we learned the most valuable lesson about systematic risk management.

Some lessons can only be learned through failure. Or in this case, near-failure. The 19 Corbett Street project taught us more about systematic risk management than any successful deal ever could.

What should have been a straightforward 6-week refurbishment became a masterclass in why having robust systems matters more than finding the perfect deal.

The Initial Opportunity

On paper, 19 Corbett Street looked perfect. A Victorian terrace in B66, purchased at auction for £89,000. The numbers were compelling:

  • Purchase price: £89,000
  • Estimated renovation: £15,000
  • Projected rental: £625/month
  • Expected yield: 7.2%

We had financing arranged, contractors lined up, and a clear 6-week timeline. What could go wrong?

When Everything Falls Apart

Three days after winning the auction, our first lender pulled out. Market conditions had changed, they said. New lending criteria. We had 25 days to complete.

No problem – we had a backup lender. Except they pulled out too, citing concerns about the property's structural integrity based on their surveyor's report.

The Moment of Truth

With 18 days left, we had a choice: walk away and lose the deposit, or find a solution. The systematic approach we'd developed was about to face its ultimate test.

The Unexpected Result

Despite the increased costs and complications, the project delivered better results than originally projected. The key was having systems in place to handle the unexpected.