| The sales strategy of your real estate investment | | | | the question is going to be, are you going to sell it |
| business plan is another big section. You really need to | | | | yourself? Are you going to be hiring professionals to |
| focus on that. Ultimately, you have got to be able to | | | | sell it on your behalf, including realtors and going |
| sell your properties at a profit. This is your business. | | | | through that process? |
| You're going to be buying, maybe holding for awhile, | | | | You need to make those decisions. You need to think |
| but ultimately have to be able to sell or provide some | | | | that through as to whether you want to sell it through |
| sort of exit strategy that makes sense. | | | | that mechanism or you're going to try to sell it yourself. |
| Buying vs. Flipping | | | | Decide on a Selling Price |
| Now if you're going to be buying a property and | | | | You need to understand how you're going to price the |
| holding it, for the most part it's a strategy that I think | | | | property. Are you going to price it real aggressive to |
| makes more sense. Certainly in this economic | | | | sell quickly, thereby foregoing some potential profit but |
| environment I think it makes a lot more sense. Then | | | | trying to sell the property relatively quickly? In this |
| your private lenders can hang in there with you for a | | | | environment, that may be your only option, but |
| couple of years for the most part, and you'd allow | | | | hopefully as the real estate market quiets down and |
| them to just get payments over time. | | | | kind of gets back to normal you would have some |
| Then somewhere down the road, 3, 4, 5, even 10 | | | | options and you could sometimes price it a little bit |
| years down the road, you'd sell the property and you'd | | | | more aggressively. You need to think those things |
| pay off your private investor. So part of the sales | | | | through. |
| strategy is how are you going to execute that? Are | | | | Then you need to think through, again, I think we've |
| you going to be buying and holding or are you going to | | | | talked about this once, which is the lease option. Are |
| be buying and flipping? You've got to be able to lay | | | | you going to sell it through a lease option, meaning you |
| that out for the investor. | | | | would offer the tenants or the prospective buyers the |
| What is Your Selling Strategy? | | | | option to rent the property for a year or two or three, |
| Are you going to be doing the selling? I would assume | | | | but ultimately give them the right to purchase the |
| that most of the people on this call are not realtors, so | | | | property at some point down the road? |