asp Do You Have An Exit Strategy?
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Do You Have An Exit Strategy?

The other day I came across some great positive cash flow real estate deals in Western Queensland.

The returns were excellent and the rental demand was strong.

The town had several industries and was on a major transport route.

In one case the vendor was even willing to leave some vendor finance in the deal.

The town was easily accessible with daily commercial flights.

I put together a series of questions to ask the agent about the deals and everything was going well until I asked these two questions:

1. How long has the property been on the market?

2. How

many offers have you had in that time?

The answer to the first question was 18 months and 3 was the answer for question two.

At that point my enthusiasm waned. I decided that this was not a deal for me.

Why?

Yes, the numbers were great, however, if I wanted to get out of the deal in the future I could see a long and painful road ahead.

Because of its location in a country area, the property was unlikely to enjoy significant capital appreciation in the future and I could potentially be locked in.

This means that this would be a rather illiquid investment.

Not a

good exit strategy in my books.

There is more to positive cash flow real estate investing than just making sure that you get a good rental return.

If you think that it's just about yield then BEWARE - you could get badly burnt!

You need to get the WHOLE picture - not just a bit of it!

About the Author

Hans Jakobi has a mission. He is dedicated to teaching ordinary people how to take control of their financies and build wealth. Hans teaches that you are the only person you should trust with your money. He is a Chartered Accountant with a Degree in Ecomomics and

Accounting. After applying his knowledge to a multi-million dollar investment portfolio himself, he now teaches the keys to achieving financial independence. He says that you have reached financial indpendence when you no longer have to work for money, because your money now works for you. Click here to learn more about Hans Jakobi's teachings: http://www.moneysecretsonline.com To subscribe to his Free 15 Day Financial Freedom NewsLetter send email to: msonewsletter@onlinemediasolutions.com

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