Undoubtedly, Real Estate investment is not sought to leave easily. The main idea to earn and earn and earn more till a person breathes his last breath. For people who have many properties in Real Estate like to get rid of a few and exit the business circle. There may be many reasons to exit real estate business. Some of which are explained by the owner while some are not. For those exit formalities to be conducted, the investor needs to be hundred percent sure if the move is right. If it is right, there should be no looking back. Frequent change in decision can lead to leaving a negative impression about your dealings. Let us know of a few exit strategies that you must follow.
Smart Guide to Real Estate Business Exit
When we say smart guide, it means you are not directly involved in the selling of the property but someone else is doing it for you to get the desired output.
• Find a Real Estate Agent: Now that you have decided on exiting the real estate business by being visible directly, you can hire or get in touch with an experienced real estate agent and get the properties sold or leased out. Remember that hiring an agent means sharing 20% of the profit that you earn. Also, ensure the person on board is trustworthy and has a magic wand to convert. List the property through the property agent at a price that is affordable by most of the people. You need to do a market research to know about the market rate and then decide on a price rather than depending on the agent completely.
• Find a Platform to advertise: When you want to sell your property, when you have hired an agent, you need to pay anything around 6% to 10% to the agent after the property is sold. Why not find a platform that allows you to advertise your property and attract potential buyers without a middle man? This strategy has been applied by many owners who have thought of selling or leasing out their properties. Isn’t that a great idea? There are many websites that have been designed to cater to this need of the property owners.
• Save on Taxes: When willing to sell a property, the Government is all set to collect tax from you. This happens when one doesn’t pay tax regularly and leave it for future. So ensure that before you are out in the market to sell your property, you have paid your taxes regularly so that you have some exemptions later.
• Plan ahead: If you know that you are investing now only to exit the business later and earn in bulk at a time, plan of getting a property that is fit to be a high-end property in the next few years with other infrastructural development that may take place for the beautification of the area. Depending on the locality, you will get a better deal in terms of your property. No one will want to pay a lucrative sum for a property that is isolated and has no means of communication.
• Ask questions: When you are planning to invest in one of the properties that you have settled to buy, ask a few important questions to yourself. The first question is “What’s the duration of my investment plan?” The second question is “Who will want to buy this property?” and “Will my taxable income be hampered?”
After asking these questions, if you get an answer that satisfies you, the decision is green. You should invest as the returns by the time you plan to exit will be handsome. That is the whole idea behind investing in real estate, isn’t it?
Renovation and beautification of a home after it has been used for long can be one of the most important actions of an exit strategy. An ugly property is neither attractive nor a good source of income. Real Estate investment decides on how well your exit works. An exit king size is an exit every real estate investor plans for. Which category do you fall under? Do you want to somehow sell a property and make an exit or exit in a grand manner making lavish money that you had planned well in advance?