Questions on Solicitor Costs & Exit Strategy

Hi Francis,

The current and prior bills relate to the conveyancing costs associated with the purchase and sale of real estate. When you enter into a property transaction you need a legal representative to review the contract as well as deal with mortgage and title issues.

Exit strategies are the ways that you plan to realise your investment profit, or else exit the deal in a worst-case scenario.

For example, when you purchase a property on a buy-and-hold strategy the normal exist strategy is to sell it. However, more sophisticated investors develop this strategy by nominating a required return on investment and also a minimum purchase price (prior to buying) that they will accept should they need a quick sale.

Another example as an exit strategy for a B&H might be to wrap it, or offer more creative financing on sale such as offering a 2nd mortgage.

Hope this has helped.

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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