Real estate exit strategies are something that you need to
make sure that you have when you’re doing investment. It’s important that you
make money when you buy something, not when you sell it. If you need to, make
sure you have an exit strategy before you begin, so that when you buy the
property you have a backup plan. If you don’t have this, this often causes a
lot of trouble, and you’ll find yourself in a huge pickle.
Now, remember that time is money, and if you have an asset
of any kind, you’re strapped for cash because the capital is located there. If
you think about it, if you’re not quickly turning over houses and making sure
that you’re doing something with the property, you’re losing something, maybe
not money but also opportunity costs, and that is something many people like to
forget.
However, there are three that stand out above the rest, and
this article will discuss the top three exit strategies that you need.
The first, you want to sell the property as a homeowner, and
you should make sure that you do make sure have diligence in this area. If
you’re an investor and selling it to a homeowner, you need to make sure that
there are homeowners in the area, and a lot of activity there. You should also
look at how fat the properties are selling, in that it’s happening at a super
quick pace. If you want to renovate the property at the same standard or even a
similar sale, and price it slightly lower, you’ll get a quicker sale. It’s a
good strategy, and if you sell it a bit lower, it’ll go fast.
Now, if you sell it as an investor, you should have a
different sort of mindset. You’re probably wondering how you can find an area
and sell it to both a homeowner and an investor. Well, look at the rate of the
home sales. See if they’re home owned or investor owned, and you should make
sure that it’s kind of a balance, since it can help support both investor and
homeowner demand. There are many areas that are out there that you can sell in
either or, and if you’re considering investing, you should look into it with
the idea of maybe selling it to either one of these, so that you’re not missing
out on a sale.
Finally, consider refinancing, and this is an exit strategy
you need to look into. This is mostly looking at how you screwed up, what
you’re doing wrong, and if you aren’t able to really do anything with it, you
got to refinance. You should check to see if you can get your financing in
check, get a loan, or refinance the property. Now, there is a lot of money out
there, and if you do refinance, you need to make sure that the rent on this is
also covering the expense that you have monthly. If you underestimate the
income and overshoot the expenses when you’re doing projections, you should be
able to have a better idea of what you will need to refinance and that does
help. You should be able to refinance a purchase in many cases, but you should
make sure that everything is in order before you do that, otherwise it can
definitely be a huge problem.
Now, if you can’t do any of these exit strategies, that’s
something that you should look at when you’re looking at your financial
picture. If you can’t do any of these three, you should not be buying
properties. This is a huge sign of it, and something that you should consider.
If you’re realizing that it’s not possible, then it’s time for you to sit back,
get your life together and your finances, and then try again. This is
definitely a huge part of it.
These three exit strategies are something that you need as a
homeowner. By making sure that you’re able to do all three of these, you’ll be
heavily protecting yourself from anything that could go amiss in terms of the
financing and getting out of investments.
