How do you determine your exit strategy?

[Cordero Abdullah]

As I'm learning and building my multi family operator experience, I'm curious to know how experienced investors/operators detemine their exit strategy for a property?

If your exit strategy is to refinance after 3 or 5 years, what do you do if this isn't a viable option? 

Interetsed Interested in hearing how seasoned investors have weathered the storm and navigated difficulty exiting a deal. 

Thanks! 

[G. Brian Davis]

Hey @Cordero Abdullah, great question. The best operators don’t just have one exit strategy, they have several. A refinance or sale in year 3-5 is nice if the market cooperates, but you have to ask what happens if rates stay high, cap rates expand, or lenders pull back? I meet with operators regularly to vet deals, and this is one of the biggest things I press on. I want to know whether the deal can survive being held longer than planned, whether the debt gives enough runway, and whether the property can still cash flow if the exit gets delayed.