The Hidden Superpower of Deferred Payments

Peleg Davidovitz

28 Sep 2025 — 1 min read

Most investors obsess over how much they’re paying for a deal. Fewer ask the smarter question: when they’re paying.

If a deal is “worth” $5M today, many will happily wire the full $5M at signing. Big mistake.

Deferred consideration—whether splitting payments over time or tying them to milestones like entitlements—unlocks massive financial advantages:

💸 Frees up cash flow today.
📈 Boosts IRR by pushing cash outflows later.
🛡 Reduces downside—only what’s paid is at risk if things go sideways.
🔍 Buys time to validate assumptions before committing more capital.
🎯 Lets you secure the deal with a lower effective entry price.
⚖ Helps bridge valuation gaps between buyer and seller.

Bottom line: timing matters as much as price. In the right hands, deferred payments are a financial weapon—not just a footnote in the contract.

👉 For more straight talk on how real value is created in real estate, hit subscribe to Getting Real with Peleg.

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