Real estate is a fascinating world, one that promises the allure of high returns and financial freedom. But let’s face it, it’s not all sunshine and rainbows. There are pitfalls, and if you’re not careful, you could get stuck with a property that becomes a financial drain. That’s why you need a game plan.
The Golden Rule: Three Exit Strategies
I have a golden rule when it comes to real estate investing: Never buy a property unless you have at least three exit strategies. Not one, not two, but at least three. This rule is non-negotiable because it’s your safety net.
The Emotional Trap
Imagine showing a property to your spouse and hearing, “Oh, I love this kitchen!” Now you’re emotionally invested. You start thinking about flipping the property and keeping it. But what if the market takes a downturn? What if the renovation costs skyrocket? That’s when you’ll wish you had multiple exit strategies.
The 30-60-90 Plan Revisited
You’ve heard me talk about the 30-60-90 rule before. The first 30 days are for selling the property “as is.” If that doesn’t happen, you move to the 60-day mark, where you consider flipping the property. But here’s the kicker: When you decide to flip, you should already have multiple exit strategies in place. You could sell it on the market, refinance and rent it out, or even sell it as a turnkey property to another investor.
The Power of Options
Having multiple exit strategies gives you options and flexibility. It allows you to adapt to market conditions and make the best decision based on current circumstances. It’s like having multiple roads leading out of a maze; you’re never stuck.
The Real Lesson
The real lesson here is not just about making money; it’s about making smart, calculated decisions that minimize risk and maximize returns. It’s about being prepared for the unexpected and having the flexibility to adapt. So the next time you’re eyeing a property, remember the golden rule: Three exit strategies. It’s your ticket to a more secure and profitable real estate investment journey.
