What Is The Best Exit Strategy: Long Term vs. Short Term - Real Estate Investing

http://www.JoeCrump.com/youtube You should never close a real estate deal without knowing your exit strategy options. You need to know both best and worst case exit scenarios. In this video, I'm going to discuss Long vs. Short term investments and why you should be doing both types in order to have a balanced, profitable business. If you don't do these things, you will be leaving a ton of money on the table. Six Month Mentor Program http://www.ZeroDownInvesting.com Joe Crump's website: http://JoeCrump.com Read Joe Crump's Blog: http://JoeCrumpBlog.com/ Read the Transcript: Having an exit strategy and knowing whether your exit strategy is going to be long term or short term is very important as you're analyzing deals. Here's how to analyze deals and figure out what your exit strategy should be. Joe: You have to figure out why you're analyzing the deal; what is your exit strategy going to be? How are you going to make money on the deal? And this video is going to be about long term versus short term investments. Is this going to be a long term investment for you? Are you going to keep it for a long time? Or is it going to be short term? Do you need cash now? Do you need to flip that property? If you're going to have a real estate investing business, you're going to need both. Joe: The first thing you need in any real estate investing business is cash flow. So you need to do short term investing to start with so that you have money coming in. No business is viable without cash flow --without money coming into you every single day. Joe: What you have to do first is create a stream of deals that are coming in constantly (and we do this using the Push Button Method techniques I teach). If you create a stream of deals coming in all the time, and do short term flip deals, you're going to have chunks of cash. It's good to have income coming in all the time for the long term investments where you're making a few hundred dollars a month from every deal that you're doing, but you need to make $1,000 to $10,000 deals instead and do quick flips and make them happen quickly, without having to use your money and without having to use your credit. These are the things that I teach in my training programs; how to do that and make it happen quickly. Joe: If you're analyzing a deal, you need to look at it and say 'How am I going to get rid of this property? Do I have to sell it for cash or am I going to be able to sell it on terms?' If you can sell it on terms, it's always going to sell faster than if you could have sold it for cash, even if you lower the price. Even if you sell it on terms and raise the price, you're going to be able to sell it faster because it's on terms -- there's a lot more people that can buy a property if they don't need much cash and they don't need much credit. Joe: These days, loans have become every very difficult to get, so I don't do much at all where it requires my buyers and my end users to go out and get loans. It takes too long to sell those properties. I want properties that I can sell quickly. Joe: There are two types of deals that I'm looking for. One, the short term flips that I can sell to an end user on terms and make a chunk of money, like we do with the "For Rent Method". We'll take a property, get it under contract from another owner to where we have an option to buy it on a lease option, and then we sell our right to buy it on a lease option to another lease option buyer. That lease option buyer pays a lease option fee to us and we keep the lease option fee. The first month's rent goes to the seller, and the seller gets full price for the property. Joe: So it's a win-win-win deal. Somebody who could not have bought a property gets to buy a property -- their credit might be bad or they may have some issues with their other income but they have enough to make their payments. They get a property they couldn't have bought otherwise. The seller, who may have had a hard time selling that property, is able to sell that property and get somebody in it that's making their payments for them, and help stop the bleeding of that mortgage payment going out every month. And, we make money because we just got the lease option fee. We'll make $2,000 to $10,000 on a quick flip like that. It may only take us two weeks to put together and 8 to 10 hours of actual work to do. That's how the "For Rent Method" works. Those are very short term, quick deals. Joe: The other type of deal that we're doing is taking them subject to the existing loan. I talked about that earlier on deal structures in one of the earlier videos.... To read the rest of the transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/what-is-the-best-exit-strategy-long-term-vs-short-term-video-7/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube1300808

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