When people look at real estate investments, one number usually gets all the attention IRR You might see 16 percent or 18 percent projected returns and think “This looks amazing. Way better than stocks.” But here is what many investors do not realize A big part of that return often depends on selling the property years later at the right price. That future sale is not guaranteed. The Big Mistake Many investors focus on How much will I make when we sell Instead of asking Will this property make money while I own it Those are two very different things. You cannot use a future sale to pay today’s bills.You cannot spend projected appreciation. Only cash flow is real during the investment. What Cash Flow Actually Means Cash flow is the money left over after Rent comes inExpenses are paidThe loan payment is made What is left is used to pay investors. Strong cash flow means You receive steady distributionsThe property can handle bumps like higher expenses or slower rent growthThe deal is less stressed if the market changes In simple terms, the property is carrying itself. The Risk of Exit Heavy Deals Some deals look great because most of the return is expected at sale. They often depend on Selling at a high priceOptimistic rent growthFavorable market conditions years from nowA low exit cap rate If those things do not happen The sale price is lowerReturns dropInvestors may not see the numbers they were shown And if the deal did not produce strong cash flow along the way, there is not much to fall back on. You end up waiting and hoping instead of earning. A Smarter Way to Look at a Deal Instead of only asking “What is the IRR” Also ask How much money does the property actually produce each yearCan it comfortably pay its bills and the loanAre distributions coming from real income, not just future plansDoes the deal still work if the sale is just average A strong deal should make sense even without a perfect exit. The Simple Takeaway The exit is important. Selling at a profit is great. But cash flow is what supports you while you wait. It is what pays distributions.It is what reduces risk.It is what makes a deal more stable. High projected returns are exciting to look at.Consistent cash flow is what makes an investment solid. Especially for busy professionals, steady income and lower risk often matter more than a big number at the end.   Facebook-f Instagram X-twitter Home Newsletter Tools Inside The Deal Understanding The Financials Our Story Advertise Contact Us Newsletter Home Newsletter Tools Inside The Deal Understanding The Financials Our Story Advertise Contact Us Newsletter FOLLOW US Facebook-f Instagram X-twitter Latest Newsletter Don’t Just Focus On The Exit When people look at real estate investments, one number usually gets all the attention IRR You might see 16 percent or 18 percent projected returns and think… Menu Home Newsletter Tools Inside The Deal Understanding The Financials About Our Story Advertise Contact Us FOLLOW US Facebook-f Instagram X-twitter Don’t Just Focus On The Exit January 10, 2026 No Comments When people look at real estate investments, one number usually gets all the attention IRR You might see 16 percent or 18 percent projected returns and think “This looks amazing. Way better than stocks.” But here is what many investors do not realize A big part of that return often depends on selling the property years later at the right price. That future sale is not guaranteed. The Big Mistake Many investors focus on How much will I make when we sell Instead of asking Will this property make money while I own it Those are two very different things. You cannot use a future sale to pay today’s bills.You cannot spend projected appreciation. Only cash flow is real during the investment. What Cash Flow Actually Means Cash flow is the money left over after Rent comes inExpenses are paidThe loan payment is made What is left is used to pay investors. Strong cash flow means You receive steady distributionsThe property can handle bumps like higher expenses or slower rent growthThe deal is less stressed if the market changes In simple terms, the property is carrying itself. The Risk of Exit Heavy Deals Some deals look great because most of the return is expected at sale. They often depend on Selling at a high priceOptimistic rent growthFavorable market conditions years from nowA low exit cap rate If those things do not happen The sale price is lowerReturns dropInvestors may not see the numbers they were shown And if the deal did not produce strong cash flow along the way, there is not much to fall back on. You end up waiting and hoping instead of earning. A Smarter Way to Look at a Deal Instead of only asking “What is the IRR” Also ask How much money does the property actually produce each yearCan it comfortably pay its bills and the loanAre distributions coming from real income, not just future plansDoes the deal still work if the sale is just average A strong deal should make sense even without a perfect exit. The Simple Takeaway The exit is important. Selling at a profit is great. But cash flow is what supports you while you wait. It is what pays distributions.It is what reduces risk.It is what makes a deal more stable. High projected returns are exciting to look at.Consistent cash flow is what makes an investment solid. Especially for busy professionals, steady income and lower risk often matter more than a big number at the end.   Facebook-f Instagram X-twitter