Getting Out of Real Estate Investments Washington DC

provided by:

When entering into a real estate investment, investors should have multiple exit strategies for a variety of circumstances. But sometimes investors run into unanticipated circumstances, or fail to plan altogether. Here are some tips for leaving a real estate investment or avoiding foreclosure with minimal damage when planned exit strategies have fallen through.

1. Selling

The first and most obvious exit strategy investors should consider is selling the property outright. Investors should calculate the price at which they have to sell the property for in order to break even, including paying off all outstanding liens, commissions and other closing costs.

Once that necessary price is set, investors should look at the selling prices of comparable properties on the market. If the market supports the investor’s price, this exit strategy may work. Ideally investors should aim for being the lowest priced comparable property in the area. Investors may also want to consider home staging, as staged homes tend to sell quicker and for higher prices than un-staged homes.

If a full 5 to 6 percent real estate commission is not in an investor's budget, they should consider looking into companies such as MLS4Owners that list homes on the MLS for a small fee. While the investor will likely lose out on marketing and consulting services performed by the listing agent, getting the property listed on the MLS is the highest priority.

2. Networking