Property appreciation: what is your exit strategy?
It’s amazing to me more so called ‘real estate investors’ don’t consider that when they buy.
Mike, of Bee Home Solutions, is a real estate investor from Charlotte who is actually out there doing what he talks about.
That’s refreshing in and of itself.
He’s got a really good website that breaks down investing planning into bite size bits we can easily chew on.
Choosing your exit strategy is an article he wrote about long term investing, which is what my family has always done.
For example, Mike’s plan is to buy a property each time you have a child.
Why? That property will appreciate over time and may be a major way your child’s college education will be paid for.
Or, you may decide to keep that property for your retirement.
Then there’s the question, what if the property doesn’t appreciate?
What about all those predictions that properties will not appreciate over the next decade like they did in the 90’s?
Those properties were bought too high.
Think of it like retail and wholesale.
You want to buy under the retail. You want to find properties that are foreclosures, pre-foreclosures, rehabs, or the banks are wanting to get rid of.
(As I’ve mentioned before, we can’t rule out the possible wild card of inflation either.)
From visiting my local real estate investing club the other night, those properties are out there, folks.
A lawyer on one of the panels said, ” it will come back.”
So where does that leave us?
Here’s my Dad’s advice that is worth gold because he has put it into practice over the last 50 years…
“Find a property with a little something wrong with it.”