We talked about the pros and cons of flipping your way to wealth. Flipping as you recall, is the act of buying property and selling it rapidly at a profit. That profit is either used to purchase another property or pocketed. Many people think this is the way to build wealth, but to me it is not. I am a firm believer in buying and holding property. That’s what I do and that’s how you create wealth and cash flow
But sometimes, you will want to or need to sell your property. That doesn’t mean you simply call your real estate agent and put a “For Sale” sign out on the street. It requires some strategy. Just as you want to manage your property to maximize cash flow, you’ll want to sell your property to maximize your return on investment. That means you’ll want to sell your property at the highest price possible. And if you’ve learned anything from this book, hopefully you’ve learned that the price of a property is based on its operations.
By now you will have already clone your management plan which guides you as you manage your property to maximize its cash flow. That’s great. That’s what a management plan should do. Of course you’re using it daily. Referring to it often. And updating it annually, aren’t you? Well, maybe not annually. In truth if you’re like most people, once your building is occupied and running well, you may not remember where the building is, let alone where the management plan is. It’s scary but it happens. I’m not endorsing that type of absentee ownership, of course!