Every smart real estate investor knows that you make your money when you buy — but you keep your money when you have the right exit strategy. At Real Estate Sales LLC, we teach our students to always have multiple exit plans before they ever sign a contract.
Why Exit Strategies Matter
Markets shift. Renovations run over budget. Buyers disappear. If you only have one plan for a property, you are one bad break away from losing money. Experienced investors always have a Plan B — and sometimes a Plan C. Knowing your exits before you buy is what separates professionals from amateurs.
Fix and Flip
The classic exit strategy: buy a distressed property, renovate it, and sell it at full market value. This is the fastest way to generate a lump sum of cash, but it also carries the most risk if you overpay or underestimate rehab costs. Always run your numbers conservatively and leave room for the unexpected.
Buy and Hold (Rental)
If the flip market softens or your renovated property is not selling, renting it out can turn a potential loss into a long-term win. Monthly rental income covers your holding costs while the property appreciates over time. Many successful investors start with flips and transition to building a rental portfolio.
Wholesale Assignment
If you get a property under contract at a great price but decide you do not want to renovate it, you can assign the contract to another investor for a fee. This is the lowest-risk exit because you never actually close on the property.
Lease Option (Rent to Own)
A lease option lets you rent the property to a tenant who has the option to purchase it at a predetermined price within a set timeframe. You collect monthly rent plus an option fee upfront, and if the tenant exercises their option, you get your full sale price.
Owner Financing
Instead of selling for cash, you become the bank. The buyer makes monthly payments to you with interest. This creates a passive income stream and can attract buyers who cannot qualify for traditional financing — expanding your pool of potential purchasers.
Refinance and Hold (BRRRR)
The BRRRR method — Buy, Rehab, Rent, Refinance, Repeat — lets you pull your investment capital back out of a property through refinancing while keeping it as a rental. This strategy lets you recycle the same capital into deal after deal.
Plan Your Exit Before You Enter
At Real Estate Sales LLC, we drill this principle into every student: never buy a property without at least two viable exit strategies. Our Flip Cheap Houses™ system teaches you how to evaluate every deal with multiple exits in mind.
Visit FlipCheapHouses.com to master your real estate exit strategies!
