Have you noticed it has become increasingly difficult to find great deals in this highly competitive market?
Have you been meeting with sellers only to find out multiple investors have already contacted them?
In many housing markets across the US the competition for great deals has become fierce. There is a great deal more investors looking for deals today than there was five or six years ago.
Many investors are lowering their margins to stay competitive. MLS homes are getting bid up higher. Motivated sellers that have not listed their homes on the market are receiving stacks of mailers from multiple investors each and every month.
The million-dollar question is How Do You Beat Your Competition In A Highly Competitive Market?
I answer to this question can be summed up by a quote from the football legend Jerry Rice. “Today I will do what others won’t, so tomorrow I can accomplish what others can’t”. We must be willing to go the extra mile above and beyond what the competition is willing to do.
How do you do this?
First let’s talk about what most investors are doing to find deals. Most investors are making offers on distressed homes that are listed on the MLS. Another large percentage of investors have also turned to direct mailing to locate off market deals.
A great way to beat your competition is to get out there and build solid relationships with top agents in your area that are locking up many of these deals that you are seeing on the MLS. You may be able to pick some of these up before the rest of the competition even knows about them.
For off market properties, you must reach the homeowner before the hoards of other investors. If you are relying solely on the homeowner to call you first, you are missing out on many opportunities.
Cathy Hopkins said it best “Don’t wait for your ship to come in, swim out to it”. You must go above and beyond your competition. Don’t just wait for the sellers to call you. Find a way to reach them.
To reach sellers before your competitors you must be willing to step outside of your comfort zone or find someone else who will. This requires finding the phone numbers for the sellers and cold calling them. Another avenue is the highly dreaded door knocking method.
Many of you are probably thinking right now “there is no way in hell I’m going to make cold calls and especially go door knocking”. That is fine but remember, the Jerry Rice’s of real estate investing are swooping in on your potential deals and scoring touchdowns.
Another way for you to beat your competition is by having a rigid follow up system in place. Many investors will stop at making one offer on an MLS property or one offer on an off market property.
If you have a rigid follow up system in place, to continually check back on these properties or sellers, you will greatly increase the amount of deals you close on and surpass what your competition is willing to do.
There are many properties listed on the MLS right now that are flying under the radar. The one’s I am speaking of are traditional sales (not short sales or REO’s) listed way to high at the moment. They do not appear as great deals to anyone.
The key is to consistently touch base with that agent once a month until it is sold to you or someone else. Be at the forefront of that agents mind so when the seller finally decides to give up, after being on the market for so long, they are willing to accept a much lower offer and the agent will contact you.
You may also want to actually write an offer each and every month on these deals as well. It can make a big difference to the seller seeing the offer right in front of them each month rather than hearing it from the agent.
With off market follow up, it is important to touch base with the seller on a consistent basis. Circumstances can change for people in just a matter of a few months. Maybe the motivation level wasn’t quite there for them to accept your first offer. If you continually follow up and build rapport with them, they will remember you and think of you first when they are truly ready to unload the home.
Place these off market sellers on a monthly follow up phone call campaign. Keep following up until they are sick of you or until they sell the home to you or someone else.
While there are many ways to go above and beyond the majority of the competition, these key ways that I just explained will surely help propel your business in these highly competitive times.
I hope that this post was very helpful to you. If it was, please share with someone who you think may benefit from it.
Here’s to your success!!!
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