Best Exit Strategies For Real Estate Investors

Mastering Real Estate Exit Strategies With Stake

Looking for the best real estate exit strategy? Here’s what you need to know:

Real estate investments often face liquidity issues due to the time-consuming nature of buying and selling property. This can slow down access to capital, creating challenges for investors who need quicker liquidity.

However,  mastering the right exit strategies with Stake can unlock smoother investment journeys and maximize returns.

Overview of Real Estate Exit Strategies

At Stake, investors have access to two primary exit mechanisms, each designed to meet different needs and market conditions:

1. Full Property Exits
   • Full exits occur when the entire property is sold at market value. This strategy is ideal for long-term investors seeking to maximize their returns through capital appreciation
2. Exit Windows
   Exit Windows provide liquidity at specific intervals and are available exclusively via the Stake app twice a year, in May and November. This strategy is ideal for investors needing almost immediate liquidity, whether for financial needs or strategic rebalancing

Exit Strategy Performance: A Case Study

To understand how Stake's exit strategies work for investors, let's take a detailed look at the performance of both options: Full Property Exits and the Exit Window.

Full Property Exits:

This strategy involves selling the entire property at market value. Stake assesses the property’s value, brings the best offer forward, and executes the sale with investor approval through a voting process.

It’s essential to note that full exits are long-term strategies. Investors typically hold their positions for some time to maximize property appreciation and align with favorable market conditions.

Here’s a breakdown of Stake’s full exit performance:

What This Means for Investors:

While Stake typically recommends a holding period of at least five years, market conditions sometimes present favorable opportunities for early exits, delivering strong returns even in shorter periods. The ability to exit properties with strong ROI proves the strength of Stake's real estate strategy.

Exit Window Performance: A Year-on-Year Comparison

Now let’s move on to Stake’s Exit Window feature, designed for investors seeking quicker access to liquidity.

This bi-annual feature is available via the Stake app, allowing investors to sell their shares during these windows, with opportunities for buyers to buy in at up to a 20% discount on market value.

Here’s a year-on-year comparison of Stake’s Exit Window performance:

May 2023 Exit Window

May 2024 Exit Window

What This Means for Investors:
With transaction volume increasing by ~235% (from AED 2M in 2023 to AED 6.7M in 2024) and the average sale completion time decreasing significantly from 22 hours to just 3 hours, the Exit Window demonstrates its ability to provide timely liquidity.

This quick turnaround empowers investors to stay agile and responsive to market changes while maintaining control over their portfolios.

Check out our quick guide, Beyond the Trade: Unlocking Liquidity In Real Estate With Stake, to see if you're eligible to participate in the upcoming exit window.

Exit Strategies: Flexibility & Profitability Combo

Both the Full Exit and Exit Window strategies at Stake offer investors a unique combination of flexibility and profitability.

By effectively understanding and utilizing these exit strategies, Stake investors can maximize their returns while confidently navigating the dynamic real estate landscape.