As you get started in the real estate investing business, you’re going to notice that you have more than a little bit of competition—and some of that competition is really big. For example, when you go to auctions, there are going to be guys there from hedge funds who will outbid everyone so that they can buy properties and hold onto them until they’re more profitable.
When you see this kind of thing happen, it can be really discouraging; it’s enough to make a lot of people want to quit. Fortunately, though, you have something special that those big competitors don’t have. If you approach this problem as a challenge to overcome, and if you know a few helpful tactics, you can beat even the biggest competition in the real estate investing business.
Focus on Your Brand
Your personal brand matters. No, it won’t magically help you outbid a hedge fund or a large real estate developer at an auction, but it will help you generate leads and make deals. The more you develop your personal brand and increase your exposure on social media, your website, and in print and in-person marketing, the more people will get to know your face and your name. Then, when people in your area need to sell their houses, they won’t think of a faceless corporation that they’ve never met before—they’ll think of you.
Get really aggressive with bandit signs, billboards, yard signs, social media marketing, and anything else you can think of to get your name out there. Do this, and you’ll be on your way to dominating the house flipping market in your area, even if larger companies are out there trying to compete with you.
Do What Your Competition Refuses to Do
Look at the ways that your competitors market and advertise themselves locally. Are they sending out direct mailers and trying to build an email list? Probably. Are they sponsoring little league teams and charity events or physically going door to door to tell people what they do and how they help the community? Probably not.
If you do what your competition isn’t willing to do, you will outperform them almost every time. They may have a bigger budget than you, but you have a bigger heart and more on the line. You need to succeed, so you’ll do whatever it takes. If you have that kind of drive, there’s no way you can lose.
Beat Them With Better Service
If you’re talking to a motivated seller and they have an offer from a big competitor, it’ll pay to know what the competitor is planning to do with the property. While money talks, people care about their homes and neighborhoods. If your competitor is planning on bulldozing the house or, worse, just letting it sit and rot until they decide to make it a part of a bigger development, then you have some leverage.
By showing your sellers that you care about the community and that you’ll be renovating and improving the house before you sell it, you may be able to convince them to choose you over the competition’s offer. This is especially effective when you tell them how your plan for the property will help property values in the area and that you will employ local contractors and real estate professionals, while your competitor won’t do any of that.
See? Big competitors really aren’t that scary, are they? Just approach them with confidence and follow these tips, and you’ll dominate your house flipping market.