When someone approaches me for a private mortgage or bridge loan, the first question I always ask is, “What is your exit strategy?” It’s not just a lending formality — it’s the foundation of every loan I consider. In my world of common-sense lending, I am not just evaluating the property and paperwork; I am also examining the people and their plans. That all begins with understanding what their exit is and how we will be repaid.
For example, if a client wants to purchase a distressed property to renovate and flip for a profit, that’s a clear and logical exit strategy; they will repay us upon sale. Another might use our bridge loan to consolidate debt or make home improvements, thereby putting them in a position to refinance conventionally shortly thereafter. Again, that’s a clear path forward. If I don’t understand or believe in the exit strategy, it’s not a loan I would consider — no matter how good the deal sounds.
But this concept of an “exit strategy” extends far beyond real estate or lending. I see it apply to business owners every single day. Some are building a business they hope to sell for a windfall. Others want to go public. Some work tirelessly to pass down the business to their children as a legacy. Regardless of the path, knowing the desired objective helps guide every decision along the way — from staffing and systems to branding and the bottom line.
And then there’s personal finance — where this question might be the most important of all. When people think of exit strategies here, they often default to thinking in terms of their ideal retirement age or achieving some magic number in the bank. But I like to dig a little deeper. What are you doing with your money right now? What’s your current strategy?
If someone is in the red — carrying debt, struggling to keep up, or simply not getting ahead — the strategy begins with getting to a baseline. That might mean creating new income streams, cutting back on expenses, or becoming more savvy with budgeting. And we can work with that. The key is having a plan and being honest about where you are and where you want to go.
On the other hand, if someone is in a stronger financial position — maybe they are doing well financially, saving appropriately, and have some breathing room — I will still ask: What’s your goal? What’s your exit? Are they working hard now because they eventually want to earn enough to spend more time with a spouse or kids? Are they pushing the envelope because they want to enjoy life later on to travel the world? Are they commendably looking to set up scholarships and be more charitable in the future? Whatever it is, once we identify it, the next question I ask is: What’s stopping you from doing some of that now?
You don’t need to wait until you have millions in the bank to live your values today. Maybe you can’t afford to give $1,000 a month to charity — but can you give $100? Or even $50 — and do it consistently? If you can’t make a large donation financially, can you donate your time or skills in a meaningful way? If your goal is to spend more time with your family, can you schedule a weekly date night or a Sunday morning breakfast with the kids? If travel is something you’ve been dreaming of, start with a weekend getaway. Don’t get stuck in the mindset that your goals have to wait until the “right time.” Life doesn’t always line up neatly like that.
And this isn’t about being idealistic — it’s about being intentional. Whether you’re struggling to make ends meet or doing just fine, the idea of an exit strategy in personal finance is about having direction. It’s about ensuring your money is working toward your priorities — not just getting lost in the daily grind. Because when you know where you’re trying to go, you can make decisions with clarity, confidence and purpose — whether it’s for a six-month loan or the next 30 years of your life.
Would you rather spend the next month public speaking or be stuck in an office with no other people and no access to communicate with anyone during work hours? I’d love to hear your answer! Please let me know if you have a good “Would you rather” question, and we will highlight your submission.
Shmuel Shayowitz (NMLS#19871) is a highly regarded real estate and finance executive, writer, speaker, coach and advisor. He is president and chief lending officer of Approved Funding, a privately held national mortgage banker and direct lender that has facilitated over $3 billion in mortgage funding. Shmuel has over 20 years of industry experience, holding numerous licenses and accreditations, including certified mortgage underwriter, licensed real estate agent, residential review appraiser, and accredited investor, to name a few. Shmuel has successfully navigated through many changing markets and business landscapes, making his market insights and experience well-coveted within the real estate industry. He can be reached via email at Shmuel@approvedfunding.com.
