3 Exit Strategies + 3 Steps To Crushing...

exit Have you ever heard that you need to know your exit strategy before you get into any deal?

Well, it’s super important that you do.

Hey Moguls, Matt Andrews here to share with you the exit strategies AND how to be successful in those strategies.

So, there are really 3 main exit strategies:

Wholesale
Flip
Buy & Hold

Let’s look at each one of these before diving into the ‘how to’ part…

The Exit Is This Way

Wholesale:

This is the strategy that takes the least amount of money and the least amount of experience. And, it’s a quicker transaction. Many times, you can wholesale a property in a few days or just a couple of weeks.

You’d find a property from a distressed/motivated homeowner, control it by getting it under contract at a deeply discounted price, and then quickly market it to another cash buyer who will likely flip it or buy & hold.

The price difference between what you got it under contract for and what your cash buyer is buying it for is your profit. For example, you get it under contract for $25,000, cash buyer pays $35,000, you make an easy $10k.

The idea with wholesaling is that you can start this strategy with very little capital. Once you start wholesaling properties, you’ll be able to build up more capital so you can move on to flips and make more money.

Flip:

So, as you probably guessed, this strategy takes a little bit more money, more experience and more resources. Of course, it takes longer, too, since you’re buying a property, fixing it up and then reselling it.

Also called rehabbing, you can get bigger profits… by scooping up a property way below market value and then hiring someone else to do the repairs and then using an investor-friendly Realtor to sell it for big bucks on the retail market.

You do have to consider how you’d finance these types of deals, of course, like with a private lender, for example.

Again, the plan would be to start with wholesaling to gain experience and capital, then start flipping properties to make more money by “retailing” them.

Once you’ve wholesaled and flipped, you could move on to buy & hold… and from everything I’ve heard in the business, that’s where all investors want to end up.

Why?

Who doesn’t want to be a passive investor making money while you sleep with buy & hold properties?

Yep, rest my case on that one.

Buy & Hold:

This is also referred to as buy, fix & hold or simply ‘renting’. This strategy creates cash flow over time because you’re renting the space out to tenants who pay rent. And you keep making that passive money until you cash out or sell the property.

With this strategy, you build long-term wealth.

Crush It!

Okay, now that we've covered these 3 main exit strategies, what does it take to actually be a successful investor and make these strategies work?

crushingit Well, it's actually quite simple... just follow these 3 steps to investing success...

Step 1. Set Goals

Step 2. Make a Plan

Step 3. Action

While these steps are really pretty simple, I know that what it takes to put these steps together and make things happen is kind of a different story. I’m not trying to fool myself or you… if it was easy, everyone would do it. But that’s why you have people like me and Mogul to help you through.

So, people get caught up at all different points in this process…

They may not set goals correctly.
They don’t make a plan.
And then they wonder why they’re afraid to take action.

Well, allow me to lay some truth out there – you’re always going to be afraid to take action if you don’t make a plan and set goals.

Now do you see what I mean about this actually being a simple thing?

Taking action is easy if you have done steps 1 and 2 right.

Most people try to take action without a plan and/or without knowing what their goals are – and it’s never going to work like that. Failure every time.

You have to do these steps in order – and that’s exactly what successful investors – like me – do.

Now it’s your turn.

Your Tips

Got any tips for crushing it with these exit strategies? Share below!

Know which exit strategy makes sense before you jump into a deal: wholesale, flip/rehab, buy & hold

Set the right goals – those that are achievable within the right timeframe

Make a plan – consult mentors and fellow investors to help you get off on the right foot and heading in the right direction for success

Take action – at some point, you’ll have to stop all the reading and webinars and courses and pull the trigger – with the right goals, plan and exit strategy, you should be good to go