Building a business plan - Exit Strategies
Newbie question
I've finally made the commitment this year to build my real estate business. I'm dedicating the first quarter of 2015 to literally finishing up my education (not that I've learned everything, just need to pick a time to be in action and not just thinking), building a written business plan, organizing myself (tools, resources, etc) so I am ready to get into action the 2nd quarter of the year.
So reading the chapter in Ultimate Beginner's guide to REI for building a business plan, there is a section for exit strategies. Wondering for those in the buy and hold arena, if anyone has considered, is planning to or is using the strategy of holding the note and selling properties at a certain time?
Let me give an example in case I'm not clear.
So say my business plan was to buy and hold for cash flow for X number of years.
At the end of X years, then I want to sell the SFR. But I want to hold the note upon sale. (not saying I wouldn't accept cash) but the goal would be to find someone wanting to use me as their lender, maybe to get an extra few years of cash flow from that same property. I like the idea of whatever tenant moves in near the X year, you offer to do a form of a lease to own option (increase rent for down payment) then convert it into a loan at a certain date.
Opinions?