How Long Do You Typically Hold a Note Before Considering an Exit?

Question

Some investors plan exits early, others wait for performance changes or market shifts.

What’s worked best in your strategy?

Ebonie Beaco · Answer

In my experience working with real estate investors as a mortgage broker, the ones who perform the best over time are usually the ones who decide on their exit strategy before they buy the property. Having a clear exit upfront makes it easier to analyze the deal correctly, choose the right loan program, and avoid surprises later.

A lot of my investor clients go into a deal already knowing whether their goal is to:
– flip the property
– BRRRR and refinance
– move into a DSCR loan
– or hold long-term for cash flow

That clarity allows them to approach the deal with confidence.

Other investors prefer to wait and see how the property performs or how the market shifts before choosing their exit. That can work too — especially when values climb or rents rise faster than expected. But even then, they still benefit from having a backup plan.

In my professional opinion, the most effective approach is:

1. Choose your main exit strategy before closing.
It gives you direction and helps you avoid buying a deal that doesn’t fit your goals.

2. Always have a secondary exit option.
The market can change quickly, and flexibility protects your capital.

3. Align your financing with your exit plan.
For example, some investors start with a bridge loan and refinance into a DSCR once the property is stabilized, while others go straight into long-term financing because the plan is to hold for years.

Simply put:
Plan your exit early, and stay flexible enough to pivot if the numbers or the market shift.