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

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