What is it? (plain English)
An exit strategy is your plan for how a short-term loan gets repaid — almost always either by selling the property or refinancing into longer-term financing. In private lending, it's not an afterthought; it's the foundation the whole loan rests on.
Who is it for?
Every real estate investor using short-term capital — fix-and-flip, bridge, or construction.
When might it make sense?
Before you borrow. The exit should be defined at the start, because lenders underwrite to it and your profit (or loss) depends on it.
Good to know
The strongest investors plan layered exits — for example, listing a renovated property for sale while applying for a refinance, so a slow market doesn't trap them. A credible exit accounts for realistic timing, market conditions, and a backup. Speculative or single-track exits are a leading cause of trouble.
Potential advantages
A clear, layered exit makes your file stronger, your terms better, and your risk lower — and it forces you to confront timing and market assumptions before they cost you.
Potential limitations
Markets and timelines shift; an exit that depends on everything going right is fragile. A loan term with no buffer for delays or refinance processing is a warning sign.
Documents you may need
A primary exit, a backup, realistic timing for each, and the numbers that show both repay the loan.
Questions to ask before you choose
- What's my primary exit, and by when?
- What's my backup if it slips?
- Does my loan term leave a buffer?
- Do the numbers work on both paths?
How Kyon helps
We weigh your exit as heavily as the lender does — and help you build a second one — because we'd rather help you strengthen a deal (or walk away) than watch a thin exit fail mid-project.