Today we’re going to talk about the importance of having more than one exit strategy. It’s more important for new investors, and new investors rarely do this well.
You need more than one exit strategy in case something outside of your control changes after you buy the house or if you simply realize you screwed something up. Listen to the full episode for an example of how this might happen, especially to an inexperienced investor. If you’re stuck with a house you won’t be able to make a profit from, you have a few options. Often investors end up renting a property instead of flipping it because that requires less rehab.
As a new investor, be careful and conservative. Run deals past more experienced investors in your community. Still, you must make sure you have alternative strategies in case something happens. Think about whether you can rent instead of flipping, or find backup financing, or just wholesale it. A bad deal happens to the best of us, just make sure that, every time you purchase a property, you have a way out.