Why you should buy property with your exit options in mind

Many investors buy with the intention of holding forever. But things can change and you should have an exit plan. In this episode, Tom and Emil discuss why having an exit strategy is important and how to be thinking of the right one for your property. --- Transcript  Before we jump into the episode, here's a quick disclaimer about our content. The Remote Real Estate Investor podcast is for informational purposes only, and is not intended as investment advice. The views, opinions and strategies of both the hosts and the guests are their own and should not be considered as guidance from Roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals.   Tom: Greetings, and welcome to the remote real estate investor. On this episode, I'm joined by   Emil: Emil Shour.   Tom: And today we're gonna be talking about buying with an exit in mind. So in other words, how to think about the eventual sale and if you're going to sell at the point where you're doing your acquisition. Alright, let's jump into it.   Emil, I am a big fan of this topic. And shout out to Pierre, for identifying this as a discussion point for today. So to reiterate, we're gonna be talking about buying with the exit in mind. And I think what before we get into the specific strategy points, as considerations is really important to think about buying with the exit in mind. Emil, I'd love to hear you riff on this.   Emil: It is, it doesn't seem like it is when you're buying your first property. And I'll tell you from experience, but years later, you will start thinking about a lot more as you buy properties and wishing you had thought about it a little bit more down the road, even if you know you're going into this and I'm holding forever. That may not always be the case. And you may want to sell down the road, especially when you know, you've done this thing for many, many years, and you're just ready to get out of business or whatever it is, it's always good to think of the end in mind.   Tom: I, the way my thought processes change, I've always been very, I buy hold forever, all that stuff. But the way I've evolved thinking about it is keep the capital in play forever. So you know, you can sell your property and have an exit in mind. But just roll it over with a 1031 and keep that capital in play. And there's plenty of good reasons to do that. Perhaps you're leveling up into you know, a two for one property is converting that 1031 or perhaps you're consolidating regions, I did that I did that with my first 1031 moving out of one market and doubling down into a different market. So just because we're thinking about the exit in mind doesn't necessarily mean that we're exiting the capital and I just need redeployment. So this discussion is very specific to the exit of the either redeployment or perhaps you have the money.   Emil: Yep.   Tom: Alright, so the first topic that I want to talk about with thinking about the exit in mind relates to thinking about who your potential buyers are. So, Emil, why would you ever notice up with a couple of buyers in a start discussion?   Emil: Alright, so I'm gonna be assuming we're talking about single family homes here. So when you are selling a single family home, luckily, you have two buyers, unlike multifamily, commercial, we're only really selling to investors, but the single family you could sell to an owner occupant, or you can sell to another investor who is like you probably buying it, wanting it to be a rental wanting to collect rent, wanting all that stuff. So you have two options with a single family in place versus a multifamily or commercial property.   Tom: Yeah. And I think what's a good way to think about that is, you know, how can you maximize, we're going to maximize the value for the various different types of buyers that you have. And I'm gonna reword that just a little bit. So next, I'm gonna start with analogy, a smart m