David Hill

Right now, there’s little doubt that it's a buyers market for real estate. Regardless of how you buy your investment property, most experienced investors agree that you should consider several viable exit strategies for what you plan to do with the property after purchase. Here are a few suggestions of exit strategies:

Buy and Hold

This should certainly be a strong consideration in today’s market. If you plan to hold, then you need to be aware of market rents for the area the property is located. Be prepared to manage the property yourself, or factor in the cost of having a management company do it for you. Your monthly expenses (Principal, Interest Taxes, Insurance and any Homeowners Association Dues) and vacancy factor should be covered by reasonable market rent. If not, then the property is priced too high for this to be a viable strategy.

Fix and Flip

Buying a house that needs some repairs can be an excellent strategy if you do your homework. Make sure you consider all of the potential costs involved downstream when determining your purchase price. Don't over-do the rehab. You want your property to be one of the best on the block, but not out of place in a particular neighborhood. Don't forget to factor in a conservative hold time – that’s the time it takes to make repairs to the property, advertise to find a buyer and close the sale.

Buy and Flip

This is a very similar process as the previous example. In this case the property is bought at deep discount needing no (or minimal) repairs therefore there is no fixing or very minimal fixing to do before flipping to the new buyer.

Wholesale

Basically, this involves getting a property under contract and selling the property to buyer. You need to be aware of market values for the properties you’re finding. There must be enough room in your negotiated purchase price to attract the interest of your buyer.

Planned flexibility

Be prepared to buy and hold a property that you originally intended to fix & flip. Even fix and flip a house you had hoped to wholesale. The bottom line is that you should consider various scenarios as you figure out your purchase price and be prepared to change exit strategies should your initially preferred plan not pan out.

There are many more creative exit strategies than just these few suggestions. If you’d like to get started investing in real estate or even if you’re already experienced, we can help you buy, sell or manage your investment properties. Visit us on the web at Midwest Premier Realty.

Year-to-date, there are 104 residential properties in Round Lake Beach, IL in either Pre-foreclosure, Auction Pending or REO status.

If you are looking to buy an investment property now is the best time! Contact Midwest Premier Realty to find the best opportunities in the Round Lake Beach, IL area. We are HUD certified and can help you find your next investment property.

Year-to-date, there are 56 residential properties in North Chicago, IL in either Pre-foreclosure, Auction Pending or REO status.

If you are looking to buy an investment property now is the best time! Contact Midwest Premier Realty to find the best opportunities in the North Chicago, IL area. We are HUD certified and can help you find your next investment property.

Year-to-date, there are 14 residential properties in Hainesville, IL in either Pre-foreclosure, Auction Pending or REO status.

If you are looking to buy an investment property now is the best time! Contact Midwest Premier Realty to find the best opportunities in the Hainesville, IL area. We are HUD certified and can help you find your next investment property.

Year-to-date, there are 35 residential properties in Barrington, IL in either Pre-foreclosure, Auction Pending or REO status.

If you are looking to buy an investment property now is the best time! Contact Midwest Premier Realty to find the best opportunities in the Barrington, IL area. We are also HUD certified and can help you find your next investment property.