What Are Good Exit Strategy Ideas

[Alexander Forrester]

Quick question here! If I am trying to build a Commercial Real Estate Empire, would it be better for me to 1031 my properties into a larger complex, or refi the properties and use the cash to purchase a new property?

[Andrew Johnson]

Alexander Forrester There's no easy answer on this one and there will be a ton of "it's property dependent" answers. I'm personally a fan of the "single larger property" idea. It's one property manager, one area to know, one asset to maintain, etc. It does narrow future exit plans, as the price goes up the buyer pool generally narrows. And you don't get to diversify asset types or geography. But if the eventual goal is "passive" income I'd go for a single commercial asset.