The third step on your path to a successful real estate investment is determining which exit strategy to use that will personally earn you a profit.
If you followed steps one and two of the most important things to do in order to make money as a real estate investor, you’ve generated motivated seller leads and gone on appointments with a seller. You’ve built a rapport with them, and now they want to work with you.
The only thing left to figure out is how you will personally make money on that deal. There are 4 ways to do so:
1. Fix and flip: Fixing and flipping a property generally provides the highest profit of all four exit strategies. You’ll want to cherry pick which deals you want to do and which deals you don’t want to do.
2. Wholesale: These will be the deals that, for whatever reason, you don’t want to fix and flip. There’s never been a better market than today to wholesale a property. Investors are out there fighting amongst themselves and competing over deals with each other. One of the best methods to wholesale is to go to your local auction with a flyer of the property you’re trying to sell and hand it out. Anyone attending an auction is highly motivated to buy a property, and this is one of the best ways to build a cash buyer list.
The only thing left to figure out is how you will personally make money on the deal.
4. List the property: If you’re a licensed agent, you can do this yourself. If not, you can reach out to another agent. Why would I recommend that someone list their property? Let’s say you have a property worth $200,000 in its current condition, the seller for it owes $180,000, and your investment offer was $150,000. This deal fits into the niche of not being a good enough price to be an acquisition and not being a short sale option because the seller has equity built into it. At the end of the day, it can only be a listing deal.
If you have any questions about these exit strategies or how to perform whichever one you think is best for you, visit my best training at www.realestateinvestingiseasy.com. If you have any other questions, feel free to give me a call or send me an email. I’d be happy to help!
