What is Your Best Real Estate Exit Strategy?
What is the best real estate exit strategy? Of course this is different for differentpeople but it all starts with “actually having one” and having it written down. Exit strategies sound so simply and yet most fail to actually have one in place. Most simply buy and investment and hope and pray they make money on it. HOPE IS NOT A STRATEGY.
Write down your strategy and share it with everyone on your real estate power team, your realtor, your property manager, and your trade professionals. The more people that are working toward the same and common goal the more likely you are to have all elements of the investment working toward the same end result.
My example of a great exit strategy:
“To sell the property for top (retail dollar) to the end user who will pay me retail”
How to accomplish this:
• Invest in a property that will sell retail. Commercial and multifamily properties are purchased by sophisticated investors looking for high returns so I want a residential single family property that will sell retail.
• The Value Play: Buying the worst home in the best neighborhoods and rehabbing the property, usually requiring only cosmetic type of fixes will generate a great deal of increased value as you bring the property into the condition of the surrounding neighborhoods.
• Get great tenants: Tenants who will take care of a place are people who want to live in nice areas. They will be willing to pay for a nice home in a nice area which gives you sustained cash flow.
Thinking of the exit strategy and backing into the outcome helps you to be a more purposeful investor.