Understanding Hold Periods and Exit Strategies

Want to know when you'll likely get your money back in profits before you invest? Hi, I'm Wayne Courage iii, managing principal of CREI Partners. Passive investors usually want a clear idea of the expected hold period for an investment. Unlike a stock, you can't just sell your share anytime, so knowing whether a deal plans to exit in three years or seven years matters. We make sure to define the business plan upfront. This is a five year project, or whatever the case may be. Of course, some flexibility is necessary. Market conditions might suggest we hold on an extra year or sell a bit earlier if a great offer comes in, but generally you'll have a ballpark timeline from the start. This means you plan your own finances. Maybe you have a kid starting college in five years and you want these funds back by then. We would match you with deals that fit that goal. Investors look for sponsors who aren't ambiguous about the exit strategy, whether it's selling to a third party, refinancing and holding longer, or even a potential refinance to return some capital mid hold. We communicate those possibilities. Clarity on the path out is just as important as the path in. If knowing the game plan from beginning to end is important to you, you're not alone. Join our free Passive Investor coaching program@ passiveinvestorcoaching.com learn how we design our deals with clear end goals so you can invest with foresight.