FAQ 92 What are exit strategies?

This term is frequently used but may not be fully understood.

An investor at some point will want to ENTER into an investment with a purpose of
gaining either EQUITY or INCOME or better still both of these. This outcome may arrive shortly
after entering or it may take a while to achieve the results that are planned/desired.

The other important factor to consider is leaving the investment ( The EXIT).

The rule for all investors is:

NEVER ENTER AN INVESTMENT WITHOUT CONSIDERING ALL EXITS

The reasons for this become apparent when undertaking the due diligence and planning.
Consider that a purchase is made with an intent to manufacture EQUITY ( Chunk Deal)

A SELL exit is planned – ie. The finished product will be sold after completing any activity.
Then the market has a downturn and if it is sold then an equity loss will result.

An alternate exit then becomes HOLD. The big question will then be \”what will it cost me to hold?\”

If the all of the figures are examined and the answer does not suit the investor finances then perhaps
this property is not suitable given the level of finances

Michael & Sara
Ultimate Coaches.