Competition. It’s brought up frequently in the real estate investing industry. Our competition from other investors, iBuyers, and having the seller list with an agent are all real issues that investors deal with on the day-to-day.
You have two options, really.
A, you realize your competition is here to stay and make yourself stand out.
B, you let the competition get the best of you and your business struggles.
Regardless of the size of your market, competition is going to be there, but it’s important to not have a scarcity mindset. If your primary focus is on “beating out the competition”, you’re likely going to be overpaying and putting your business in a potentially bad position.
By having an abundance mindset, you’ll be able to analyze the deal properly and not let emotions get in the way. If the numbers don’t work for you, don’t feel pressured into offering a price higher than you’re comfortable with. Instead, focus on building rapport with the seller, figuring out what their motivation is, and see if you can help solve some of their non-monetary issues.
Remember that people work with people they trust.
Don’t be afraid to have an open conversation about other offers they may have on the table and talk them through any questions they have. Many sellers don’t fully understand how the iBuyers work. Walk them through their process. If they’re considering selling to an agent, let them know things that would need to be done in order for it to be move-in ready with an agent.
You won’t always beat your competition out on price, and you shouldn’t focus on that, but if you build trust with the seller, they might decide to work with you because they know you’ll be with them through the transition.
Money isn’t always their motivation. Remember this.
Your competition will come and go. Don’t focus on them. Focus on your business. Build a business of consistency, solid core values, and with an abundance mindset.