Topic 5.1: Define an Exit Strategy
When it comes to looking at deals, most investors figure out their purchase price based on a cap rate. However, the best investors determine their purchase price based on the exit strategy. By understanding your exit strategy, you will be able to win more deals and get higher returns for yourself and investors. It means properly planning for the long term and executing on the strategy you are developing upfront. Maybe it’s a flip. Perhaps it’s a short term hold. Maybe you have investors with 1031 money. The point is, you need to determine this up front and make the strategy an integral part of your acquisition plan. The strategy is centered around these 3 principles. Adhering to these principles will give you an advantage over competitive offers and get you the deal.