Not Creating an Exit Strategy for Your Real Estate Business
Posted by at November 10, 2012 in Business | Exit Strategy | Management | Real Estate
It’s easier to get into real estate than to get out of it. A real estate investing business plan for most people goes like this: “I’m going to get some property, and something good is going to happen.” Thirty years later, they have 38 rental properties.
Managing them is driving them nuts, and they want to retire. They can’t sell them, because they’d have to pay too much in taxes. Their kids don’t want to own or operate the properties, and they simply don’t know what to do because they didn’t put an exit strategy in place.
SUCCESSFUL REAL ESTATE INVESTING 36 Every time you buy a property, write down your plan for it, and keep that plan in that property’s file folder. For example, my Plan A for one house worth $120,000 is to wholesale it. I buy it for $80,000 and flip it to someone for $90,000, so I’ll make $10,000.
Plan B: If I can’t wholesale it quickly enough, I’ll find a hard moneylender who’ll lend me the $80,000 to buy it. Then I’ll have more time to sell it, because I know I can make money on it. Plan C: If I can’t wholesale it or borrow hard money, I have a friend with great credit who wants to get into real estate.
Related posts:
You can follow any responses to this entry through the RSS 2.0 You can leave a response, or trackback.