10 Exit Strategies to Buy 10 Homes a Week

In my conversation with Rich Lennon, who is a real estate investor that is focused on buy-and-hold, but is also active in a wide range of other investment strategies, he explains how educating himself on all possible exit strategies allows him to purchase 1 property per week. Ultimately, by the end of the year, his goal is to use the strategies to increase his weekly deal acquisitions from 1 to 10.

Rich’s Best Ever advice is to educate yourself on all the possible and different exit strategies. When he first started purchasing homes, he believed there were only a handful of exit strategies. However, as he become more involved in the real estate business, he was able to educate himself on other potential exit strategies. As a result, he discovered 10 different exit strategies that can be applied to any give home. In no particular order, here is a list of exit strategies Rich uses:

1. Flip
   • Acquire the property
   • Perform rehabs
   • Sell on the retail market
2. Rent
   • Acquire the property
   • Rent to a tenant for a specified period of time
3. Seller Financing
   • Acquire the property,
   • “Sell” on the retail market,
   • “Finance” the property for the buyer and essentially become the bank
4. Notes (Top 7 Answers About Real Estate Notes)
   • Create notes,
   • Sell your notes on the secondary market with properties
5. Rent-to-own
   • Same as “Rent”, however, provide the tenant with an option-to-buy
6. Wholesale
   • Get the property under contract,
   • “Sell” the contract to a qualified buyer in one of multiple ways
7. Create mortgage wraps (Wikipedia – Wraparound Mortgage)
   • Form of seller-financing
8. Joint Venture (Nuts and Bolts of Real Estate Joint Venture Partnerships)
   • Acquire the property
   • Fund the deal with a “partner”
9. Entities (Land Trust Traps for the Unwary Investors – Part 1, Part 2)
   • Rich purchases all of his properties in land trusts
10. Tax Advantages
    • Rich tries to keep all of his transactions in tax free environments by using self-directed IRAs, self-directed HSAs, and self-directed coverdells

The main benefit of learning all the different exit strategies is that it gives you the ability to buy more properties. Therefore, you can entertain more deal opportunities instead of just being a cookie cutter investor.

Take the time to follow the links provided above, educate yourself on the different exit strategies, and see which one (or multiples) that you can begun to pursue more aggressively

Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.