Top Exit Strategies You Should Consider Adding To Your InvestorToolbox

What makes an investor successful? You might suggest a bunch of different reasons but I think one of the key reasons that an investor is successful is that they have multiple exit strategies in their investor toolbox.

Exit strategies gives you OPTIONS. With only one exit strategy at your disposal, you can only take on certain kinds of deals and close them in certain ways. But with multiple exit strategies, you can take on more deals because you have a lot more flexibility in how you profit from them.

In this blog post, I want to share a number of top exit strategies with you. Not all of these will be ideal for every investor but the more you have, better. (And just a reminder: exit strategies do not have to mean you sell the property… you’re just exiting your own financial capital from the deal through a return).

Exit Strategies

Wholesaling: You put a low-priced property under contract and sell that contract to another investor, adding a fee for finding the property and negotiating with the seller.

Turnkey wholesaling: You acquire a low-priced property, fix it up, put a tenant in it, put a management company in place, and then you sell it to a cash flow investor who wants the rental income without the hassle of fixing a property or finding a tenant.

Rent: You acquire a property, fix it up if necessary, and rent it to a tenant.

Rent-To-Own: You acquire a property, fix up if necessary, and rent it to a tenant who pays you rental income until they are ready to buy the property, and then they pay you a pre-agreed purchase price.

Rehabber/Flipper: You acquire a property, fix it up, and sell it at market price (i.e. probably to a retail buyer).

I’ve Only Scratched The Surface

I’ve just listed a few of the top exit strategies – ones I like and/or have done myself. There are variations on these that I haven’t listed, and there are others as well, but these are a good solid start for you.

Let me illustrate how to use these: So let’s say you start as a wholesaler. You put the property under contract and you want to sell it. You offer it to your cash buyers list but no one is taking it. You know it’s a good deal and you don’t want to lose it so instead of letting the contract expire, you acquire the property yourself and you fix it up. You put it on the market to sell retail but it takes too long to sell. So you take it off the market and rent it out.

See what happened there? You had a plan but you weren’t stuck to it. When the first plan didn’t work out, you went to plan B (selling it). When that didn’t work out, you went to plan C (renting it). You can always switch plans again in the future if you don’t want to hold the property any longer.