EXIT STRATEGIES; ALWAYS BEGIN WITH THE END IN MIND SHARON VORNHOLT
ne of the concepts that a lot of real estate investors have a hard time grasping, especially when
they are first starting out, is the concept that you need to know the day you buy a property what you
plan to do with it; or your “exit strategy” as it is commonly called. You will find that experienced real
estate investors almost always have more than one exit strategy. This is known as “Plan B” or your
“back-up plan”.
Having more than one exit strategy gives you options if things don’t work out as planned. As the saying goes,
“You make your money the day you buy the property”. If an investor pays too much for the property initially, it is
generally going to be pretty hard to make money on it when he sells it. So knowing what you plan to do with the
property right from the beginning is extremely important.