Exit Strategies Small-Multi-Family Investing

[Devonte Dinkins]

Good Afternoon Everyone,

I will be investing in real estate upon graduation from college in Summer 2015. I have decided that I will be investing in small multi-family apartments in working class neighborhoods.  I tend to think years in advance, and I would like to know some exit strategies for this niche of investing. I have heard that liquidating multi-families is pretty difficult, so I would like to see what the BP community thinks.

[Wade Sikkink]

Long term planning is always a good idea. Here's a couple things to keep in mind when thinking about your real estate future. Real estate makes money in 3 ways. Cash flow, appreciation and mortgage pay down. When considering a property think about how it will add to your wealth from these factors. Not every property has to be the same, which leads to the next point. Think about your properties as a portfolio. They are a group of assets that each have their own charateristics, but as a whole get you to your goals.

Heres one other thing to consider. Warren Buffet is the 2nd richest person in the world. When he buys a company he doesn't have an exit strategy. He plans to hold everything forever.

Good luck.