ONE OF THE MOST IMPORTANT STRATEGIES that we teach in real estate coaching is to have an exit strategy. This protects the investor by giving them a way of getting out of the contract if information comes about that isn’t favorable.
ANOTHER REASON FOR AN EXIT STRATEGY is that it gives you an opportunity to plan for the future. In other words, before you purchased a piece of real estate you need to decide what you’re going to do with it. Are you going to keep it and rent it or are you going to rehab it and do a quick sell. You will benefit from having an exit plan because unplanned exits are usually a financial and emotional disaster
THIS SAME STRATEGY APPLIES IF YOU OWN A BUSINESS. There will come a day when what you are doing is no longer what you want to be doing. If you own your own business having an exit plan is one of the wisest things you can do. If you have a plan to get out of the business you will know what steps you need to take along the way to make that happen.
ANOTHER EXIT PLAN THAT MANY PEOPLE FAIL TO PUT INTO PLACE is when they invest into the stock market. It’s said that many people by high and sell low. Why? They don’t have an exit plan. They panic when things go down and buy when things are rosy.
If they have purchased a good company’s stock and they have a down turn, hold on to the stock. When stocks go down it’s a great time to buy, not sell. However, when stock is cheap there is usually bad news in the press and it’s harder to buy in this investment climate. This is what’s know as contrary investing and investors who practice this strategy usually make out very well.
A WILL OR A LIVING TRUST IS ALSO AN EXIT PLAN. It’s the ultimate exit plan. However, if you haven’t taken the time to organize your affairs before you pass on it could take your heirs many more hours than it would have taken you to unravel the web of assets that you have left behind.
DO YOU HAVE AN EXIT PLAN? If not, what will it take for you to create one? By having a plan written down on how you plan to leave, you will be able to create more powerful goals for today. Not knowing how you will depart will leave you feeling stuck. Having a plan, even if you never use it, provides an opportunity for creating an exciting possibility for what is next.
QUOTES: "Start with the end in mind." Stephen Covey
"You got to be careful if you don't know where you're going, because you might not get there." Yogi Berra
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125