The Number One Reason You Should Consider Your Real Estate Competitor As Your Ally
As a real estate investor, you obviously know the drill by now; you find properties to flip, give your offer, prepare yourself psychologically to get most of them rejected and a few of them accepted. But sometimes you might just submit several offers and they all get accepted at the same time.
This can be quite a dilemma especially if you do not have the financial ability to handle all the offers at once. The bank may not be willing to lend you the money to finance all your flips, you may not have access to all the necessary funds or maybe you encountered some unexpected issues with the property.
It’s common to see a number of real estate investors get properties under contract only to later on realize that the money they thought they had can’t be used to seal the deal. As a real estate investor, when you come across such situations, they can be a really good opportunity for you.
Having said that, that real estate you consider your competitor could very well be your next partner.
Unlikely Sources Of House Flipping Deals
Last year I landed on a house flipping deal from a very unlikely source. I knew this real estate investor from the several REIA meetings I had been attending. We weren’t exactly close friends but he respected my hustle. After all, he had seen me doing a fair amount of business in my local area.
He had snagged two deals at once and was able to only follow with one. He was hoping to finance one of the deals through a bank but unfortunately that didn’t work out as expected. On realizing that things weren’t going as planned, he contacted us.
He was willing to forward the deal to us provided we refund him his deposit. I didn’t want to make a hasty decision so I drove to the property. I evaluated all his numbers on the renovations and it turns out he hadn’t done any eraser math. We took the deal and made a five figure profit.
To date we have a very good relationship and he often brings me other deals. Although they haven’t turned into sales yet, we still have a good business relationship.
When You Have Too Much Money
Sometimes we may have more money than the deals we have going on at the moment. This is a great situation but you can always turn to your competitor to source some great deals. More and more people are using the competitor technique nowadays. This is an interesting way of finding deals and I have to admit I would have never used this approach a year ago.
When you think about it, turning to your competitor to source for deals seems counter intuitive. But when you look at it from another angle, your competitor can be a potential partner. It just depends on how you look at it.