By Lauren Rosin, Founder of The Rosin Team at eXp Realty Real Estate Strategy for Executives
Read Time: 1 Minute
The best exit strategy is planned before the property is purchased.
According to Lauren Rosin, an acquisition should never be evaluated on today's numbers alone. A property's future exit often determines whether the investment truly succeeds.
Start With the End in Mind
Before buying, consider multiple exit scenarios:
- Sell: Capture appreciation and redeploy capital.
- 1031 Exchange: Defer capital gains taxes by reinvesting into another qualifying property.
- Refinance & Hold: Access equity while continuing to own the asset.
- Transfer to Heirs: Preserve long-term wealth through estate planning.
Each strategy creates a different financial outcome, and each should be evaluated before closing.
Why It Matters
Markets change. Interest rates shift. Property values rise and fall.
Modeling multiple exit scenarios helps investors understand how changing conditions could affect returns and provides flexibility when it's time to make the next move.
The goal isn't simply to know how you'll exit.
It's to understand which exit strategy best supports your long-term wealth plan.
Bottom Line
Every acquisition deserves an exit strategy before an offer is written.
The best investments aren't just purchased well—they're planned well from beginning to end.
Sources
NCREIF Property Index, Capitalization Rate Trends IRS Publication 544, Like-Kind (1031) Exchanges