Buying the building is step one.
But the money’s made on the way out.
We’ve walked away from deals with solid numbers, because the exit strategy was vague or unrealistic.
As passive investors, you don’t control when or how a property exits.
But you can (and should) understand the plan.
Here are three things we help our investor group look for:
✅ Defined hold period. Is it 3 years? 7? Indefinite? The timeline affects risk, liquidity, and return.
✅ Exit options. Are they planning to sell, refi, or 1031 into another deal? Bonus points if they’ve done it before.
✅ Market fit. Is there real buyer demand in this submarket at the projected exit cap rate? Or is it wishful thinking?
One of our longtime investors asked us:
“What happens if the market shifts and you can’t exit?”
Fair question.
That’s why we only invest with teams who stress-test multiple exit scenarios, and have backup plans ready.
Because you’re not just investing in the deal.
You’re investing in someone’s ability to see the finish line clearly.
P.S. What would you want to know about an operator’s exit plan before wiring funds?
Ever thought about what you'd do if your rental strategy suddenly went sideways?
I've been hearing from a lot of people facing property losses because they didn’t plan for an exit strategy.
It’s a tough spot to be in, especially when regulations or market conditions suddenly change.
Let’s talk about why having a backup plan from the start is crucial.
We’ll also explore some smart alternatives that can boost your returns and reduce risks.
Here's the scenario: you dive into short-term rentals, inspired by the success stories.
But then—bam!—regulations hit, and suddenly, short-term rentals are a no-go in your market.
I see this far too often.
People are left scrambling, wishing they had planned better.
𝗪𝗵𝘆 𝗘𝘅𝗶𝘁 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 𝗠𝗮𝘁𝘁𝗲𝗿:
👉𝗥𝗶𝘀𝗸 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁:
Influential investors plan for the unexpected. Whether it's stock market crashes or housing bubbles, having a clear exit strategy is essential.
👉𝗠𝗮𝘅𝗶𝗺𝗶𝘇𝗶𝗻𝗴 𝗣𝗿𝗼𝗳𝗶𝘁𝘀:
A solid exit strategy allows you to capitalize on market trends and avoid missed opportunities.
Take it from me: I saw many short-term rental operators struggle during COVID, while my midterm rentals thrived. Why? Because I was prepared and had diversified my approach.
𝗞𝗲𝘆 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 𝘁𝗼 𝗖𝗼𝗻𝘀𝗶𝗱𝗲𝗿:
💡𝗠𝗶𝗱𝘁𝗲𝗿𝗺 𝗥𝗲𝗻𝘁𝗮𝗹𝘀:
Great for stability and steady income, especially when short-term rentals face regulatory challenges.
They offer a more predictable income and fewer headaches.
💡𝗥𝗲𝗻𝘁𝗶𝗻𝗴 𝗯𝘆 𝘁𝗵𝗲 𝗥𝗼𝗼𝗺:
A viable option but can be management-intensive.
It’s effective if you need to fill gaps left by short-term rental bans.
💡𝗧𝘂𝗿𝗻 𝗵𝗼𝗺𝗲𝘀 𝗶𝗻𝘁𝗼 𝘀𝗵𝗮𝗿𝗲𝗱 𝘀𝗽𝗮𝗰𝗲𝘀:
An innovative approach that turns single-family homes into affordable, shared living spaces.
It’s an excellent way to boost income and meet the growing need for affordable housing.
With a high collection rate and minimal vacancy risks, it’s a game-changer.
So, what’s your strategy?
Are you facing challenges with current rental models?
Or maybe you're exploring new ways to maximize your property’s potential?
Share your thoughts and experiences below.
Let’s discuss how to turn obstacles into opportunities.
https://bit.ly/4cbC5q7#RealEstate#Investing#ExitStrategies#PropertyManagement#InvestmentTips#HousingSolutio
Most Investors Buy With No Exit Strategy—Don’t Be One of Them
Imagine you’re at a poker table. You’ve got a solid hand, the stakes are high, and the pot is growing. You have three choices: cash out, go all in, or play it safe and hold your position.
Real estate is no different. Every property you invest in is a hand you’re playing, and the decision to hold, refinance, or sell can make or break your long-term wealth.
But here’s where most investors go wrong…
They focus so much on acquiring properties that they never think about how they’ll exit. They rehab, they rent, and then—they just hold on, hoping for appreciation or better cash flow. No strategy. No plan. Just hoping.
The best investors don’t just buy properties. They buy with the end in mind. Before they even close, they know their options.
1. Holding for cash flow and long-term wealth works if:
-Your cash flow covers expenses with a strong buffer
-The area is appreciating, increasing your equity over time
-You’re in it for passive income, tax benefits, and wealth building
Holding is the foundation of generational wealth, but only if the numbers make sense.
2. Refinancing to keep the asset and recycle capital is a smart move if:
-Your property has significantly increased in value
-You want to pull cash out to reinvest without losing the asset
-You can secure a lower interest rate and reduce debt costs
This is the BRRRR strategy in action—using one property to fund the next without touching your own money.
3. Selling to maximize profits and reinvest elsewhere makes sense if:
-Market conditions are at their peak, maximizing your return
-The property isn’t performing as expected
-You can 1031 exchange into a better, higher-yield investment
Think of selling like trading up. The goal isn’t just to cash out, it’s to move into better opportunities that fit your long-term strategy.
Most investors make emotional decisions. They hold onto properties because they’re attached, refinance without thinking through cash flow, or sell too early because they panic.
The best investors treat real estate like a game of chess, not checkers. Every move is strategic. Every exit is planned.
Look at your portfolio. Do you have a clear exit strategy for each property? If not, it’s time to start thinking like a pro.
Drop a comment below—are you holding, refinancing, or selling right now?
#RealEstateInvesting#RealEstateStrategy#BRRRRMethod#FixAndFlip#1031Exchange