Exit Date

The exit date in real estate investment refers to the date on which an investor plans to sell their investment property. It signifies the end of the hold period.

The exit date is a significant factor in financial modeling as it impacts the time value of money, the calculation of the investment's internal rate of return (IRR), and other key investment metrics.

For instance, if an investor purchases a property on January 1, 2023, and plans a five-year hold period, the exit date would be December 31, 2027. This exit date would be used in projecting the final year's cash flows, estimating the sale price based on the projected market conditions at that time, and calculating the potential capital gains.

Determining an exit date involves a combination of the investor's personal investment goals, market forecasts, and the anticipated life cycle of the property.