Deciding what you are going to do with a property before investing in it needs to hold just as much priority as getting the lowest price and negotiating the deal.
Think about it, you can invest in a desirable property, but unless you know how you are going to turn your investment into a profit, or what we call your ‘exit’ strategy, you may end up holding onto a property for longer than intended. Choosing the right exit strategy can speed up the exit process, meaning you can close quicker, and in turn, get paid faster. Who doesn’t want that?
We will cover the basic exit strategies here, but to learn more in-depth ways to invest in and close properties fast, you can check out our online courses like the Unlimited Funding Program where you can learn the strategies that we have mastered directly from the source.
So, what are the different exit strategies, and what does each entail?
Sell Outright
This is the method that usually comes to mind when you think about a traditional real estate transaction, and is the one you will probably use the most, especially when first starting out.
When selling outright, you find a conventional buyer, and they either get a loan or pay you cash for the home. There are many benefits to this method, including the fact that you can usually cash out of the deal quickly. On the flip side, it can be a long process if you are dealing with a buyer that is getting a mortgage. It can also be costly to market a home traditionally, with the marketing and open house costs, among others.
Round-Robin
A round-robin auction is the fastest way to cash out of a deal. It entails creating a sense of urgency by listing the property “auction” style. You market the property and hold an open house, ultimately selling to the highest bidder. Having only a short period where you accept offers, this is a much quicker option than the other methods. However, this only works in certain markets, and on properties that meet specific criteria, and we would recommend studying our methods in detail before attempting a round-robin exit strategy.
Lease
While this is the exit strategy with the highest chance for profit, we suggest waiting for this option until you have several deals under your belt. A lease exit strategy is when you don’t sell the property right away; you lease it out and give the renter an option to buy. The downsides to this method are the fact that there may be downturns in the market, meaning you may not be able to rent it for as much as you initially thought, or you may end up having to sell at a discount.
There are many other factors to explore when choosing an exit strategy, but at the end of the day, if you have an exit strategy in place before you invest in a property, you are much more likely to turn a profit more quickly than if you are underprepared.
Request FREE Funding Kit and Discover How To Legally Bypass Banks And Gain Direct Access To "No-Credit-Required" Funding You Can Use To Achieve Your Financial Freedom... Start Now!
