Exit strategies or exit triggers?

Question

A lot of advice on BP says to create an exit strategy before diving in deep. When I look for resources on this it's all different forms of how to get rid of the properties. To me, that's less important than knowing when to exit. I'm more thinking about it as exit triggers instead of exit strategies. I'm thinking it could be something like "sell the property if I'm not able to have break even cash flow".

Does anyone have any advice on when you should plan on exiting (other than death or retirement)? Are there any resources on BP that I'm not finding? How important is it to define this before diving in?

Does anyone have any advice on when you should plan on exiting (other than death or retirement)? Are there any resources on BP that I'm not finding? How important is it to define this before diving in?

Lelith Walker · Answer

All of these may not be triggers for you and me but it may be triggers for other investors.

• The strategy you had in place is not working -trigger
• There were additional costs that the previous owner did not reveal to you -trigger
• If you got ripped off by people -trigger
• If you partnered with someone and you do not get along or can't agree on nothing - trigger
• One of the big employers in the area filed bankruptcy -trigger
• One of the big employers in the area decides to move to another city or state -trigger
• home owners association is similar to Hitler's gestapo -trigger
• tenants association is unreasonable and troublesome
• If you see another deal that you like better -trigger
• you feel the market is going to change -trigger
• If the weather changes and suddenly you find that your area is not the same ie drought or flood or mud slide -trigger 
• Insurance increases because of weather change -trigger
• found out that the land is contaminated - trigger
• you are tired of dealing with the property -trigger
• tenants not paying rent -trigger
• you took on more than you can handle -trigger
• property taxes went up -trigger
• gangs in the neighborhood -trigger
• family issues change your priority and you simply cant handle it no more -trigger
• your tax abatement has expired - trigger
• transportation has discontinued in the area -trigger
• legislation to put in a new transportation station has been vetoed or approved -trigger
• the team (ex contractors, project managers, etc) you tried to put together doesn't work out- trigger
• illegal activity found on the premises -trigger
• tenants tell you place is haunted and you know someone died on property -trigger
• demonic neighbors
• abundance of pests -trigger
• sink hole formed - trigger
• cess pool discovered -trigger
• water contamination
• population change
• schools accredation changes
• schools shut down
• tenants or their family starts shooting at each other or you
• wrong type of business sets up shop near your property, or they are too close or your comfort. ie gas station or drug dealer or prostitution or cemetery or factory
• whatever does not float your boat -trigger