Is It Time To Sell Your REI Business?

by blogger1
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on May 26 in BestTransactionFunding

Is it the right time to sell your real estate investing business? If so, is your company even sellable?


This could be the ideal time for many real estate business owners to cash in and sell their companies. It is a window of opportunity many will kick themselves for missing out on.


However, not every company is positioned and optimized to be sold or bought. Let’s look at the timing, why you should be prepared regardless of your plans, and what you can do to make your company an attractive acquisition.


Why Now Is The Right Time To Sell


This is the phase in the real estate cycle when many real estate businesses may be peaking in value and appeal. It is also the same peak time in the general economy and mergers and acquisitions cycle for business owners to sell.


Many failed to see this opportunity ahead of 2008. Then either struggled for years while everything fell apart, or just closed the doors and quit, leaving millions of dollars in unclaimed value on the table.


This is a time in the economy when a lot of consolidation is in the works. Capital markets still have cash to fund acquisitions, and bigger companies want to expand by acquiring more market share.


That could all change fast in a downturn. The ability to buy may evaporate. Acquirers will be looking for steals, and to offer a small percentage of what they may offer now.


Why Having A Sellable Real Estate Business Is Important


Right now you may think you will never want to sell your business. That’s what most think, until the moment they need to. Yet, we never know where the market, company values, will go, and when for sure. We never know if we will be healthy enough to work tomorrow. Or if our families will need us to be present for them, instead of running a business.


Selling a business can provide a lump sum payday, ongoing passive income, or a combination of both, without having to be involved on a daily basis.


Even if you never sell, being sure your company is set up for it will only help increase the value of your assets, and improve your operations. You can’t lose. Yet, you can build millions or billions of dollars in extra value into your company, while going about your regular daily work. It’s virtually a no-brainer.


How To Optimize Your Company


Optimize your company for value and appeal by:


  • Creating systems throughout your business
  • Maintaining clean records, accounting, and contracts
  • Use smart leverage for deals and keep your cash balance sheet healthier
  • Make sure your business can run without your daily involvement


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