If I had to provide one thing critical to the success of the most successful real estate investors in America, I could sum it up with one word: Options.
To be successful in real estate investing, you must have options…or in real estate investor lingo, have multiple “Exit Strategies”. The most common exit strategies are Retailing (buying, fixing the house up, and reselling), Wholesaling and Assigning (generally doing nothing to the property, and simply selling it on to another investor), or keeping houses as rentals.
Successful real estate investors realize that they’re in the “opportunity” business. Give me an opportunity, and I’ll find an exit strategy that works and will allow me to make money on the deal. If you’re comfortable using all your ‘tools’, you’ll be able to take on various deals, and make money doing it.
You’ll be a more confident buyer, as you know you have multiple exits. You can turn deals you’d otherwise pass on into profit.
If you’re blessed to buy houses at very deep discounts, you have several different exit strategies you can consider on a single house! Talk about peace of mind! Options of what to do with a deal once you get it are a real estate investors best friend!
If you’re not comfortable with different exit strategies common in your market (rentals aren’t great in some areas of the country), find others that are successfully using that strategy to make money…and learn from them. Or, find a mentor that knows what they’re doing!
Watch this video to learn much more about the importance of exit strategies in real estate investing.
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