Exit strategy

Can you elaborate on the particular situation?

There’s lots of options but at the same time if you’re “exiting” you will no doubt be selling the place…

Agreed this can be interpreted several ways.
1 – exit deposit capital, this can be done via refinance after equity game.
2 – exit profit – via cashflow to live on (rent) or LOE
3 – exit profit final – ie selling
4 – exit the game – retirement if you really plan on doing nothing.

Personally I don’t see the point of “retirement” when it comes to investing, I think the reality for most people is far more fluid, and they remain engaged in the investing side of things (sometimes moreso than when working ft) after finishing working ft

If you are talking about selling, my experience has been fun 4 from 4 times, all very profitable exits. My advice is to give the market what it wants, ie finished cosmetically beautiful properties ready for families, couples etc. In smaller markets (like mining towns) you want to sell into the rise, because the risk after a downturn is that you won’t be able to sell out at all.

In larger markets, you can probably hold on a little longer as the market may be a bit more forgiving for selling out just after a peak (depends on other economic shocks etc though)

If you meant number 1 refinancing, then I call this “deposit recycling” and it works well when your serviceability is strong, so as soon as you have growth in a property you should access it, refinance, store the extra funds in an offset somewhere for a rainy day then when you have enough, go shopping for more property. This is a good way to expand a portfolio, but not technically exit, just exit of your input cash for that particular investment

• This reply was modified 8 years, 11 months ago by  BuyersAgent.