It would not be smart of you to invest in real estate without an exit plan. Now, let’s just get something clear. We Buy Fast Houston Houses is not saying that you need to get into real estate with one foot out. All we’re saying is, you need to have a plan. And that’s especially true if you’re considering working with a private lender for funding.
While trying to figure out an exit strategy, you need to ask yourself a couple of questions. For example, you could ask yourself, Is my home the type of property that you’ll want to fix and flip as soon as possible? Or will you be renting out the property and then refinance it later with a traditional lender? By the way, these are examples of some of the questions that you’ll be asked by your lender, just to find out whether you’re qualified as a borrower or how much they can lend your project.
i. What’s Really An Exit Strategy?
This is how you pay back what you owe (the borrower) at the end of your agreed upon term. In simpler terms, this is how you get out of the debt after investing. So you’ll have to plan how to use the money you’re given to invest, earn your return on investment, and then pay back the loan. right now you might be wondering why all this is important but you should know that without an exit strategy, you won’t be able to prevent losses or minimize them.
ii. The Fix And Flip Exit Strategy
This is actually a fun one. The intent of this strategy is to buy my home in Houston, Texas without repairs, work on the improvements or renovations, and then relist it for a profit. It might be harder than it sounds if you have to experience in the field. And that’s where We Buy Fast Houston Houses comes in. We could coach you through the process. It’s a suitable method for investors looking to make short-term profits and move on to the next project. Remember, selling my home fast is the overall exit strategy.
iii. The Fix And Lease Exit Strategy
The primary purpose of this strategy is to refinance my home with a bank or any other conventional lender, and hold it as a rental. You should also bear in mind that if refinancing my house is the plan, you’ll need an incredible credit score. A score that’s less than stellar won’t cut it. Lenders are only willing to work with investors who have credit scores that are higher than 660 in this case. What We Buy Fast Houston Houses is saying is, if the score can’t help you secure another loan by the time you’re done with your term, you should think of a different exit strategy.
iv. Do Your Homework
It’s wise to know what you’re getting yourself into before you do anything drastic. Understand the real estate market and have a plan of how the property will serve you. If you need help determining what’s best suited for you, We Buy Fast Houston Houses is just a phone call away.