Is it the right time to purchase a property? Did I underestimate the current market? With the right knowledge, you can minimize your losses and boost your gains. Once you have a plan of action, you can take on any problems head on. After you have settled on your course, consider any worst-case scenario that might happen and draft an exit strategy just in case. CUTYOUR LOSS No one wants to hold on to a bad investment. Some investors tend to look at the silver lining thinking that it might be able to turn around in the long run. An exit strategy is vital once you find yourself inevitably tied up in a relatively poor investment. Often the best approach is to sell the property. Once you decide to sell the property though, think of how you could get the best return on investment (ROI) possible. Will listing the property on the market fix your problems? This can be a rather tough decision especially if you have poured a lot of time and effort in the property. It can be easy to fall subject to bias, that is why it would be in your best interest to learn how to cut your losses. Don’t lose more than what you already have. PICKYOURSELFUP It doesn’t help to mull over your miscalculations and sit around feeling sorry for yourself about a deal gone bad. Pick yourself up and look ahead for more future investments to start with. Remember, this is a valuable nugget of experience when you plan to take on a similar investment deal. You’re now armed with more tools in your arsenal, which helps you make smart decisions and identify what type of properties have a good potential for investment and which don’t. You also have to stop avoiding any potential real estate investments for fear that they’ll turn out bad. Any investment deal is better than having none at all. Regardless of how everything is resolved, learn from every investment process. By doing so, your well-informed decisions can mark a higher potential for return. •

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