It’s normal for real estate investors to have a preferred exit strategy that they typically go to. It’s their first calculation to determine whether it will be a good deal or not, except it’s important to have other exit strategies that allow your buy box to open up a bit.
Especially when you’re still on the newer side of real estate investing, it’s not a bad idea to utilize the same exit strategy over multiple deals as you’re gaining confidence and knowledge. You get better at running comps, estimating repairs, talking to the seller, and getting the deal closed.
As you grow in experience, it can be favorable to add in another exit strategy so if a particular deal doesn’t fit inside your normal parameters, you’re able to provide the seller with another option that might allow you to offer them terms that work better for them. Rentals and creative finance deals are great for allowing you to open your buy box up more.
By doing this, you’re getting more juice from the fruit.
With leads, there’s always going to be a good chunk of them that aren’t qualified. Of those that could be potential deals, you’re able to get more deals from the same amount of marketing, purely by knowing how to work the deal with the best exit strategy. Instead of passing it off to another investor, you’re able to get more deals because you aren’t disqualifying them so quickly.
Listen to the seller and figure out what their pain points are and what they need in order to be able to sell to you. Sometimes it’s a payoff, while other times it’s a certain amount of money so they can start fresh. Listen to their needs and build your offer around this.
You can create a win-win situation on deals you used to toss away. If you’re going to be spending the money on marketing, get creative on your follow up and when you’re talking with a seller, explain to them what options you’re able to provide them. Give them transparency and allow them to pick what works best in their situation.
With knowledge and confidence comes power.