Invest Success Mentor Class – Exit Strategies

This class teaches students how to plan and execute the most profitable and practical ways to exit a real estate investment. Whether selling, renting, or using creative strategies like rent-to-own or owner financing, you’ll learn to align your exit with your goals, the property type, and current market conditions.

What You’ll Learn:

• Exit Strategy Options:

  • Fix & Flip – Renovate and sell retail

  • Buy & Hold – Keep and rent for monthly cash flow

  • Rent to Own (Lease Option) – Collect upfront and monthly payments with a future sale

  • Owner Carry – Become the lender and finance the buyer yourself

FLIP: Selling the Property

• FSBO (For Sale By Owner): Simple but limited exposure

• MLS with a Broker/Realtor: Greater visibility and professional support; typical commission 5–6%

• Pricing Strategy: Price to sell, not to recoup mistakes; rely on current comps and market trends

• Staging & Curb Appeal:

  • Use furniture, décor, and feature cards to influence buyers and appraisers

  • Focus on cleanliness, lighting, and emotional appeal

  • Light staging tips provided to increase perceived value

FILL: Renting the Property

• Rental Analysis: Use comps, Rentometer, Craigslist, and management insights to determine rent

• Section 8 Rentals:

  • Pros: Steady government payments, long-term tenants

  • Cons: Extra inspections, wear & tear, slower response to maintenance issues

• Rental Agreements & Tenant Screening:

  • Include addendums (pets, mold, radon, etc.)

  • Screen for income, references, and creditworthiness

• Property Managers:

  • Fees range from 8–12% + tenant placement costs

  • Choose carefully—good PMs make rentals passive

Creative Exit Strategies

• Lease Option / Rent to Own:

  • Combines lease with an option to purchase

  • Collect option fee + monthly cash flow + profit at closing

  • Avoid granting equitable interest; use clear contracts

• Owner Carry (Seller Financing):

  • Great if property is owned free & clear

  • You become the bank with fixed income, less responsibility

  • Hire a loan servicer to manage payments and compliance

Other Exit Options Include:

• VRBO / Airbnb

• Mid-term rentals (e.g. traveling nurses)

• Group homes or assisted living

• Zoning changes for higher value

• Mobile homes or mobile home parks

• Multi-family or commercial conversions

Tax Benefits (Consult a Pro!):

• 1031 Exchange: Defer capital gains by rolling profits into another investment

• Capital Gains Exclusion: Up to $250K (or $500K for married couples) on personal residences

Key Takeaways:

• Always know your exit strategy before buying

• Have a backup plan—markets shift!

• Match your strategy to your goals, lifestyle, and risk tolerance

• Real profit comes from smart, timely exits—not just the purchase