If you’re involved in property you know from first-hand experience that finding your first deal is a big thing. Not only because this is the start of your journey, and all the hard work behind the scenes is paying off, but because when we first start on our journey, whether that’s property or something else, we tend to overthink every little thing. And this can mean you start your journey a little later than what you had written down in your 2021 goals notebook, right?

But, if you are overthinking the property deals you’re finding, why?

Are you worried you aren’t sticking to your criteria and falling at the first hurdle?

Or are you worried that your buy-to-flip is really better off as a buy-to-let?

If that’s the case, don’t fret! Everyone has had these nerves and if you’ve done your research and due diligence, then why are you worrying so hard?

If property is new to you, and this is the first blog of ours you’ve read (a true shame by the way!) you don’t need to worry either, because this blog is all about exit strategies and making sure you’re using the right one when it comes to your property deals!


Exit Strategy 1 – Buy-to-Flip

A buy-to-flip (BTF) is what it says on the tin. It’s a property which you believe, after your research and due diligence, is better suited to buying, refurbishing and then re-selling for a profit. It could be because of it’s location, the type of property it is or the figures you have received after your research which fits your criteria for a BTF.  If the property is a BTF, and fits your criteria for a BTF, you’re next steps are to get this property secured, have your refurbishment team in place and sell in a few months time for a profit.

Depending on your criteria, you should be able to easily see which strategies work for the property deals you have found.


Exit Strategy 2 – But-to-Let

A buy-to-let (BTL) is a property which you are going to refurbish and then rent out for a monthly cashflow. The property may only need a light refurbishment and may come with or without sitting tenants. If you are going to use the BTL strategy, you need to ask yourself whether it fit’s your criteria; does it meet your minimum monthly cashflow and how long will it take to get all of your money out?     You may also use this strategy because your research has identified that rental properties are in demand in this location.


Exit Strategy 3 – House of Multiple Occupancy

A House of Multiple Occupancy, otherwise known as a HMO, is a strategy not many people use, but a great one if you have done your research. As opposed to traditional BTL or BTF’s, a HMO is a building which house multiple people in their own sectioned apartments, which could have shared areas, such as kitchen/gardens etc. They are usually located in busier areas, such as main towns or cities, as opposed to traditional BTL or BTF’s which could be anywhere, and are particularly useful in areas where there are a lot of workers or students, near to hospitals or universities, near to travel routes/train stations/bus routes or where young single individuals may be looking to live.

Bigger buildings are usually adapted for this strategy, and planning permission is needed before any work begins. For your due diligence needs, you should speak with a planning consultant for more information on the area where the property is located, and you should avoid listed buildings as planning permission will be harder to get.


Exit Strategy 4 – Package Deal

So, you have a property deal. But it doesn’t fit your criteria for a BTF, nor does it fit your criteria for a BTL, and is not big enough to transform into a HMO. So what do you do?

Package the property deal up and sell it on to another property developer/investor. Investors are always looking for property to invest in, and sometimes they don’t find what they are looking for in their goldmine areas, but your property deal might just fit their criteria.  If you can pull together all of the research and due diligence information you have gathered and sell this on to an investor for a lump sum, you’re still making money on the property, even if you aren’t the one to do the refurbishment work.

This is a great strategy to use if you’re just starting and want to bring in some cashflow whilst still setting up your refurbishment team.


Exit Strategy 5 – Joint Venture Partnership

A Joint Venture (JV) is typically used on bigger property deals, such as large buildings, HMO’s or land deals, but could be used on the smaller and more traditional property deals if so decided.  For this strategy, you need to find another individual who is willing to become involved in the property deal, and who could bring something to the table which you don’t.

JV’s are an exit strategy which work best when an agreement has already been made, which outlines what each person is bringing to the venture, what the expectations and outcomes are for each individual, and where effective communication can be used.  A Joint Venture is not something which should be rushed into just because you’ve found a deal which works. Both parties have to be ready to go ahead with the work, as both parties are affected by the outcomes of this business venture.


So, there you go! Above are 5 exit strategies which you could use on your property deals. But remember to use them in accordance with which one’s work for your criteria, and make sure you’ve done your due diligence before starting your project!