After 25 years of experience and over half a billion dollars of multi-family properties sold that the biggest mistake real estate investors make is they fail to plan their exit strategy before buying, and therefore, over pay for a property. They may start out with the intention of improving the cash on cash return by improving the units and raising the rents, but the biggest mistake they make is planning what the value of the property will be in 3-5 years and what will be necessary to achieve it. I use a proven system that analyzes each line item of income and expenses and then adjust each accordingly, annually based on projections, to determine what the property will be worth, as well as what the potential tax exposure will be if a sale is contemplated. My system determines the Internal Rates of Return, both before and after tax, to give you the road map necessary to achieve your objectives.
Planning your exit strategy is crucially important in the current Covid world because a mistake in planning may be devastating financially!
