Buy & Hold Exit Strategy

April 9, 2024

 

Buy & Hold Exit Strategy

The Buy & Hold Exit Strategy is a long term strategy for investors looking to build wealth through real estate. Real estate investors count on a turn in the market or plan to add value to the home in another way. It’s also a plan investors use when they want to rent the home, while waiting for the right time to sell it.

The Exit Strategy

An exit strategy is what you use when you need to get out of a real estate deal before your anticipated date. It’s basically a plan on what to do with the property if you need to sell sooner than you wanted to sell. Your exit strategy may also simply be how you plan to make your money from your investment. It’s best to have multiple exit strategies when you’re using this strategy.

Turning Buy & Hold into Your Exit Strategy

Maybe you purchased a property with the intent of renovating and selling it fast or flipping the property. While in the renovation process, you found more issues than you budgeted for. This could cause the deal to leave you with a loss or barely breaking even. In this case, using the buy and hold strategy may be the best exit strategy. You can rent the home and recoup some of the money you invested over the long term. This may also allow you to buy some time until the home is worth more and you can sell it for a larger profit.

 

For professional advice on all aspects of buying or selling real estate in Miami, please contact me at aross@miamirealestate.com or (305) 661.4003, or come see me at the Compass office located at 4699 Ponce de Leon Blvd, in Coral Gables.