The Book On Investing - Invest in Real Estate to Create the Life Of Your Dreams

What Do You Want To Be?

Facebook Twitter Google Linkedin Stumbleupon Pinterest “What do you want to be when you grow up?” is a question that you become accustomed to hearing as a child from adults. Many of us were annoyed by that question, but we admit that we have asked many children that question ourselves. Today, let’s focus on you!

What is an Exit Strategy?

To begin our discussion, first we will discuss “what is an exit strategy.” An exit strategy is essentially the way that you plan to dispose of the property that you are considering buying. To be successful in real estate investing, you must know your exit strategy when you purchase the property. The goal in real estate investing should be building wealth for you and your family, period.

Why is it important to have an exit strategy?

Many people believe that real estate investing is about buying a piece of property just to possess it. Or, they call themselves “Real Estate Investors”, when they purchase real estate at a specified price and “hope” that that price will increase over time. These types of “investors” are often disillusioned when the cost of maintaining a property becomes prohibitive or the value of the property decreases significantly.

What would happen if you had an exit strategy?

If you had an exit strategy, you would have a better understanding of the maximum amount of money to spend on your deal. If the market is good and I know that the property will command premium rents or a long- term lease, then I might use a buy and hold strategy to hold on to the property for long term wealth creation and positive cash flow.