Competition, when it comes to business, can often be a very brutal affair. Many companies have taken the “Kill or be killed” motto looking at their competitors as fierce enemies that must be surpassed or crushed.
In the world of real estate investing I feel that you can create a much more profitable business by learning from and growing with your competitors. Let me explain.
How Can You Grow With Your Competitors?
What is the single most important thing that all real estate investors are seeking? The answer, if you didn’t guess it already, is profitable real estate deals.
The most obvious competition when seeking great deals to acquire is other real estate investors. The other big part of the competition is actually other real estate agents, at least when it comes to off market properties. If the property is listed before you get a chance to put it under contract, your chances of buying it decrease significantly.
Knowing that other real estate investors and realtors are our biggest competition what could we possibly do to spin that into an advantage moving forward in our business?
Why not partner with them?
Whether your main focus is on wholesaling, rehabbing or acquiring more rentals, you can create very profitable partnerships with fellow competitors.
It is not uncommon in the wholesaling business to find yourself with a property under contract that you are having trouble finding a buyer for. This can happen despite all due diligence conducted & efforts to make sure it is a desirable deal for your buyers.
In this situation it is key to have partnerships with other wholesalers. While you may share some of the same buyers, they will have relationships already built with buyers that you do not have on your buyers list.
With a click of a button they can blast your deal out to their buyers. In return for them bringing you a buyer you would give them a cut of the wholesale fee or they can add their fee on top of yours.
Many wholesalers actually get their feet wet with fix and flips by joint venturing with rehabbers. This is an excellent way to learn the trade. You can bring valuable deals to rehabbers and work out a joint venture on the project.
It is very common for Rehabbers to work together with other wholesalers. Rehabbers are always looking for the next great project to take on. Many rehabbers understand that wholesalers specialize in locating/creating these deals.
Building solid relationships with wholesalers is a great way to grow your fix and flip business.
There are certain situations where it may make sense for rehabbers to partner on projects as well. Every rehabber has a different skill set, different sources of capital and other resources that could compliment each other’s businesses. This can also help to share the risk involved, especially on much larger and more complex projects.
It is wise for investors that are looking to build up their portfolio of rental properties, to have relationships built with wholesalers as well as rehabbers.
Wholesalers can bring them great rental deals for them to grow their real estate holdings.
Relationships with rehabbers can come in handy for those investors that are looking for turnkey rentals. They may be able to buy directly from the rehabber before the property is ever listed on the market.
Building Partnerships With Realtors
All real estate investors of every kind should have solid relationships/partnerships with real estate investing savvy realtors.
Realtors that truly understand how to evaluate properties from an investment point of view are invaluable. The ones that can determine when a property is truly a great deal for us investors and understands when it does pencil out, is a great asset to have on your side.
Realtors can be an incredible source of ongoing deals for your investing business.
Networking With Your Competition
You can learn a great deal from networking with your competition if you are open minded enough to do so.
By building relationships with your competitors you can keep a better pulse on the current state of the real estate market. You may find that the market is tightening up and learn ways that others are adapting to it and finding success.
You can learn about more efficient ways of managing your rehab projects, more effective ways of using direct mail to reach your audience, better ways to utilize social media to generate more buyers or seller leads or even better ways to screen out potential tenants. What you can learn from your competition is endless.
The point that I want to continue to drive home with you though is that you don’t have to look at your competition as the enemy. Get creative. Think outside the box a little. Figure out how you can further build your real estate investing business by building lasting partnerships with your fellow competitors. When done right, your business will thrive like never before.
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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