“Fixers, Flips, and Rehabs” Part 1 Who’s your Competition ?

The world of Real Estate is fascinating offering many opportunities. Nothing spurs the emotions more than the opportunity to Work On a Fixer. Before you get to excited though there are some questions to be answered. First and Foremost ” Who is your competition ” ?

Believe it or not the World of Fixers Flips and Rehabs is a very competitive Business. In the Portland Oregon area where I am the most familiar, the Competition is extremely Stiff.

If a property shows merit, there may be as many as 20-30 prospective purchasers. Out of that group it is not uncommon to see as many as 10-15 All Cash Offers. And when I say Cash I mean Cash. Cash means the ability when asked to take the Seller to the Bank and point into the corner your pile of the Green Stuff. What’s the difference you ask ? Isn’t a Bank Loan the same as Cash ? The simple answer is No. There are too many additional decision makers in a Bank loan. Real Cash is much less of a worry for the Seller as they know that the only person they have to worry about is You the Buyer. In addition to Cash most Buyer’s writing a strong offer where the property is a legitimate opportunity will offer no contingencies, no inspections with a very quick closing usually 10 days or less.

How then can you Compete ? Competing in this type of market place often means Settling for marginal returns. Settling for a marginal return is not the end of the world. Like  the old saying goes” Rome was not built in a Day “. Over the years I have had the great fortune of helping many people over come the cash poor problem by searching for the opportunity that was overlooked by those looking only at the slam dunks. Over time as you progress you will build Confidence, a following for your work and most importantly a Nest Egg for future projects. The key is to be realistic. Choose someone to work with that will represent you and understand your needs as it pertains to the Business of Real Estate. Better yet someone who has done a fixer themselves as their experience can be insightful to you in many ways. Choose someone that will look at the big picture. Show them that you have the confidence to pull it off. Choose people to work with that you get a long with and share the same goals with, for working on fixers is a true collaboration. By all means stick with it and follow you heart. Have fun and learn learn learn. Part 2 next week.