Exit strategies

[William Yamada]

Hello BP community. I've been doing a lot of reading and listening to the BP podcasts. I plan on getting started with wholesaling. Im still working full-time, but I want to get moving. I'm working on my business plan and feel like I'm taking my first steps. My knees are wobbly and I'm holding on to the couch. I was looking to get some help with exit strategies. I would love to hear about some different scenarios and what exit strategy you chose. I want to understand what my options might be.

[Manny Cirino]

Hi William,

I could start you off with a few just to get a good concept of what you can do. You have assignment of contract, double closing & lease options.

Assignments are the simplest were you lock in a deal under a purchase and sale agreement then simple assign your rights to buy over to a buyer you find for a fee. They agree to the fee on an assignment of contract and the title company continues the sale between your buyer and seller.

Double closing- on this strategy you actualy close on the house on or around the same date. You sign a purchase and sale agreement and actually buy the house using borrowed cash such as transactional funding and at the same time you sell to a buy you find. This is used usually when you want to conceal your profit on the flip from the buyer. This is good when you have a large profit.

Lease option- this is good when you want to reduce risk and are concerned about exiting a contract or backing out of it. Here you simply lock a property under a lease to rent with an option to purchase find a buyer and assign them the rights to the lease option of a fee. This can be as a rent-to-own transaction or an actual purchase. It a bit more to it but just to get the thoughts flowing.

It is good that you are learning multiple strategies now rather than later as most people do and realize how many leads they have thrown out for not knowing alternative solutions.