We are working on a business plan for an investment property. After researching how to present a business plan to potential investors, I realized that the exit plan is almost as crucial as Plan A. What is the plan if your goal fails? Do you have a Plan B or C? Do you have an exit plan?
If you have not realized, I am a risk-taker. Playing it safe is no fun. I feel safe taking financial risks, because I always have an exit plan. “If this fails, what am I going to lose? What can I learn from it? How can I pridefully get out with my head still high? I can always make more money. I can always return to the service industry at any position.”
I can also succeed with the risk that I am taking. I can make it big. I will never win the race if I never start running.
I want to tell you what we at RAM Realty are doing right now. I have an agent on my team who has recently lost his brother and best friend to an overdose. His brother left behind two beautiful young children. This life-changing event rocked my agent’s world forever. His life purpose, priorities, and entire personality have changed. If you have ever lost someone close to you, you probably understand what I mean. Addiction is a game changer.
I have an uncle who has been sober for 18+ years, and his entire life is about his sobriety. It must be. If he is not helping others stay sober, he may stumble himself. Lifting others gives you the strength to remain strong and responsible.
RAM Realty deals with many short sales & sheriff sale properties. There was a property in Hammond that was going to Sheriff sale; it was in a good location, had seven bedrooms & seven bathrooms, and had room for parking. When my agent and I investigated it, he came alive. He developed a passion and drive that I had not seen previously. He wanted to open a sober living home for boys like his brother and make a difference in their lives. He wanted to name the house after his brother and use the profits to help his niece and nephew, who must grow up without their dad.
We found an investor to go to the sheriff’s sale and bid as much as possible with our available cash. We could not outbid the bank, and they repurchased it. An explanation will be in a subsequent article. This property returned to the market four months later at a good value. I knew it would not be on the market very long. We advised our agent to put in an offer and get it under contract, and we would determine how to pay for it afterward. That is where we are today. We have until Thursday to find the money. By the time you read this article, I believe we will have found a way, God willing. If we cannot find the funding in time, we will have lost a few hundred dollars in deposit, a little creditability with the other agent, and time spent dreaming. Even if we cannot find funding, we will have gained confidence, experience, and knowledge for the next suitable property. You can always “fail forward.” Purposefully search for valuable education in all results. If you would like an update to this story or would like to contribute in any way, call Andrew Recotta – 504.229.8171 I have another agent whom we encouraged to buy his first flip property. The market when he purchased it was very different than it is now. He failed financially, but NOT educationally. I know the next one will be successful because of the lessons he learned from this failure. Fail forward! Plan for your exit, your plan B. Take the risk. Put your tennis shoes on and start running.