Exit strategy has to do with what you intend to do with a building you purchase. For example; you may wish to own the building for 5 years and sell it when the market recovers. This is "one" exit strategy. Another strategy would be to purchase a property for "X" number of dollars below market then "flip" or sell the property very close to your time of purchase or after rehabbing for a fast profit. Also, if someone asks you, "What is your exit strategy, you may answer, "I'm purchasing to hold indefinitely." Hope this helps. In short, all an exit strategy is, really, is a description of why you intend to purchase the building! This is nothing magic! Hope this simple answer helps!
Jun 22, 2009