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What are the Factors to Consider in Developing an Exit Strategy When Investing in Commercial Real Estate?

Photo by Maxime Guilbot on Flickr (CC BY 2.0)

David Thomas opines in a discussion in the Loopnet Group of LInkedIn that most investors fail to consider an exit strategy when investing in commercial real estate.

I am in violent agreement with David’s comment. However, his comment led me to question: What is an exit strategy and what factors should an investor consider when developing an exit strategy?

Is an exit strategy merely deciding that you are going to sell in 5 years or is there more to it?

Are the factors to consider hard and fast rules for sale or should there be flexible triggers to a sale?

Let me know your thoughts and strategies in the comment section of this post and maybe this will become a radio/TV show in the future.

This post was originally inspired by Kevin Bupp’s discussion, The Most Overlooked Factor of Property Investing in the Loopnet, LinkedIn group

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