Exit Strategies and 1031 Exchanges

Equally as important. Doing your due diligence is like oatmeal and eating broccoli. Put in the boring work.

Planning for the long term is crucial. Here are the options you have for exiting a real estate investment strategy.

Holding:

• Make sure you can still run the property when you’re old
• Have a property management company you rely on
• Or own properties that require very little active involvement, like some forms of commercial real estate
• Get in touch with expert asset protection lawyers who can ensure that taxes are minimal or non-existent on the property for your descendants
• Seller financing
• Remember that this is a win-win for both sides, and you can be on the other side of things as well!

When selling with seller financing

• Benefits
• Higher sales price
• Lower tax bill; if you sell the property outright, you pay the tax bill outright, whereas if you sell the property incrementally, you will have to pay a lower tax bill based on the amount of income received that year

Exit the real estate game:

• Hold your money in savings, in the stock market, or some other form of investment
• Become a private lender

More than one option. It’s a big, wide world of real estate, that’s for sure.