Cash Flow Friday Tip #4: Real estate is easy to get into, but hard to get out of…
February 6, 2015
This week’s Cash Flow Friday tip is based on a profound statement I like to use when speaking to both new and ultram 100 mg order experienced RE investors about their investment strategy and the saying is “Real Estate is easy to get into, but hard to get out of.
Let them tell you what this statement means to me by breaking it down into two separate parts with the first part being– the getting into real estate and the second part getting out of real estate a.k.a. your exit strategy.
Getting into real estate is easy
- Many different strategies to make money in RE, some of which you can do with almost a zero budget (wholesaling)
- Multiple different educational options to learn the business (books, bootcamps, coaches, podcasts, etc)
- Great financing options even for people with bad credit (hard or private money and even creative financing)
Bottom line, if you put your mind to it you can buy an investment property, BUT just because you buy something doesn’t mean it’s a worthwhile property that will meet your goals – both short and long term. In addition, it’s imperative that you fully understand your exit strategy and have both a plan A, B, and C before ever getting into it because as the saying goes, getting into RE is easy but getting out can be a much greater challenge, one that if you don’t do your homework and have a plan in place can leave you in financial ruins.
Possible exit plans
- Adding value and selling for short term capital gains
- Holding for long term cash flow
- Adding value and refinancing to pull your capital back out
- Fire sale – worst case scenario
- Selling on creative terms
Thanks for listening in to the Cash Flow Friday Tip and until we meet again next week, Get out there and make some cash flow happen.
- Yours Truly