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Part 4: Quick-Start Guide to Investing – Exit Strategies and Mastering Your Craft

Post It Note to Improve Skill

We’ve been outlining the 8 Steps you need to take as a beginner to get your real estate investing business off to the quickest start possible:

  1. Understanding Real Estate Cycles
  2. Identifying the Key Indicators in Your Market
  3. Building Your Power Team
  4. Making Offers
  5. Finding Financing Sources for Your Deals
  6. Implementing Finding Strategies
  7. Understanding Exit Strategies
  8. Constantly Learning and Mastering Your Craft

In this final installment, we’ll be looking at Steps 7 and 8.

Step 7 – Understanding Exit Strategies

To effectively get started in the investing business, you must understand exit strategies and how to use them to get into and out of deals profitably.

Every property that you encounter is a different situation. Each one has a different need, a different financing challenge and one or more appropriate exit strategies. The more exit strategies you know and master, the greater your chances of success as an investor!

For starters, make sure that you have a sound understanding of wholesaling, lease options, seller financing, rental properties, and rehabbing. These exit strategies will provide you with a solid foundation to be able to put together deals that are profitable for you and helpful for sellers. (Rich Dad Education’s Elite Training courses are designed to give you detailed instruction in each of these areas.)

Step 8 – Constantly Learning and Mastering Your Craft

Like most things in life, learning is a journey and not a destination. Truly savvy investors realize that they must remain in constant search of new ideas and information if they want to stay one step ahead of their competition.

Rich Dad Education offers classes, a Mentor Program, and personal coaching that are designed to help you realize your full potential as an investor and entrepreneur. We also encourage you to utilize many of the resources you have, from your local library to the Internet, to stay up-to-date on current market conditions and strategies.

As you continue on your path to financial freedom, get help as you need it.

By Mark Justice

Rich Dad® Education Elite Training Mentor

Real Estate Investing Strategies

Real Estate Investing

Real Estate Investing Strategies: Which Strategy to Choose?

Rich Dad Education’s elite trainings cover numerous real estate investing strategies.  The course material covered in these elite trainings prepare Rich Dad Education students to enter the world of real estate investing from the first day they leave the elite training. Each of the strategies taught in these elite trainings can be used to help students pursue their goal of obtaining financial freedom and escaping the Rat Race. Some real estate investors choose to use multiple strategies in their day-to-day real estate dealings, while other investors focus on one or two strategies that work well within specific real estate markets.

Identifying and understanding the nuances of your targeted real estate market is an important first step in determining which strategies to initially learn and master. Identifying the markets that you may want to invest in can give you a sense of what Rich Dad Education elite trainings may work best for you. Your knowledge of the real estate market goes far beyond simply helping you select which Rich Dad Education elite training is optimal. Understanding the dynamics of your targeted market will give you valuable information and data to help determine revenue projections, estimate rental figures, and calculate expenses. There are far too many advantages to not take the time to understand the specific market you are going to invest in.

Choosing Your Initial Strategy

Ideally you want to have numerous real estate investing strategies at your disposal. This will give you tremendous flexibility when approaching potential deals, as you attempt to find solutions that work for all parties involved. It will also allow you to maximize the return on your investment. For example, you might find a distressed property owned by a motivated seller that has fallen behind on their payments. You may be able to work out a short sale with the owner and their bank, use your knowledge of rehabbing to fix up the property, and then use your knowledge of lease options as an exit strategy. The only downside to learning multiple strategies is the time it takes to study and learn them. The upside offered makes this investment of time well worth the effort.

Understanding how multiple investing strategies work should be one of your educational goals. However, if you are new to real estate investing, or are thinking about pursuing a real estate investing career, this might feel like an overwhelming task. If this is the case, then initially focus on a strategy or two that is both appealing to you and one that you feel will work well in the market you have chosen to invest in. If the market you are considering currently has a very high foreclosure rate, then it might behoove you to investigate that particular strategy. If there are a high percentage of renters in that market, and becoming a landlord is appealing to you, then investigating property management might be a good place to start. If rehabbing has always sparked your interest, and there are numerous distressed properties in your targeted market, then it may be wise to start there.

As time goes on you can, and should, add to your real estate investing playbook by increasing your knowledge in various real estate investing strategies and techniques. Even if you find a go to strategy that you enjoy and are successful at, being diversified in your real estate investing approach can help you finalize deals that you might not be able to do otherwise.  If you feel overwhelmed as a new real estate investor, then take a moment to realize that all successful real estate investors had a beginning point. If you take the time to investing potential markets and identify strategies that will work in those areas, this simple step can catapult you from your beginning point into a successful real estate investing career.

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