Competing against other investment buyers in the Detroit real estate investment market can be very hard. When the seller reviews all of their offers, yours must stand out in all the right ways to be the winning offer. We’ve put together some ways for you to compete with other investment buyers in Detroit.
Taking Too Long
Don’t hesitate when you are competing with other investment buyers in Detroit. Many times, being the early bird really can make the difference between getting the deal or not. While it is advisable to use caution, not deciding means you’ve lost the chance. Inexperience is likely the culprit if you are hesitant. Suppose you don’t have a plan for your real estate investment portfolio, from acquisition to exit strategy and you don’t have a comprehension of what your budget can afford. In that case, it is only natural you wouldn’t feel sure about any property you’re considering as a potential investment. As a real estate investor running your own business, it is your full-time job to stay on top of the market, move quickly on great deals and build a team on hand ready to back you up with every possible need along the way. As a new investor, there is a great deal to learn and there is great benefit in teaming up with a professional wholesaler who will help devise a plan to suit your goals.
Unless you have ready cash in hand, this means that you will be financing at least part of the investment. Financing can take several weeks to locate and put in place, depending upon the method that best fits your credit status and budgetary needs. The significant part about being pre-approved for your financing is the appeal to the seller in knowing you’re serious about the deal and there won’t be delays. Additionally, you are now aware of how much you can afford to borrow. Unless you are buying a new property, your plans for the investment should include careful calculations for repairs, holding costs and unexpected expenses that crop up during the rehabilitation project. Before you make your offer, have the money ready to compete with other investment buyers in Detroit.
Nothing to hold up the sale or closing should be in your offer if you want to compete with other investment buyers in Detroit. When you are submitting an offer, you’ll want to keep it clean of any hold-ups, making it more appealing to sellers who wish to have their cash in hand for the property right now.
Contingencies in a contract are conditions, such as requesting additional time for inspections or financial records to be investigated. These contingencies protect the buyer, allowing them to back out of an agreement legally before closing without penalty in most cases. However, these protective measures nearly always cause a delay in closing. With the right team helping, you can have the property inspected before making an offer and waiving the contingencies.
Being able to close fast is desirable in an offer and will help you compete with other investment buyers in Detroit. Often, sellers are in financial distress, and the ability to close quickly may override your offer being slightly lower than another. While it is difficult to compete against cash buyers, keep in mind that they consider the convenience of cash as adding value to their offer, typically causing them to make lower bids, counting on dangling the carrot of hard cold cash in front of the seller. With financing in place, you can move just as swiftly and come in with the right offer, which will beat them out every time.
Pinpoint Your Offer
Make a realistic offer. Coming in too low will take you out of the competition with other investment buyers in Detroit. Bringing together all of the data, including a realistic estimate for any rehabilitation, ensures you’re in the right ballpark. While you want to avoid coming in too low and facing rejection of the offer, you must prevent overpaying, or you may never realize the anticipated profits. Pinpointing the right offer also requires an intimate knowledge of similar properties that have been on the market and have closed recently.
Work with us and get a jumpstart with our free preferred buyer list, access investment properties as soon as they become available. We have what it takes to put you ahead of the competition with other investment buyers in Detroit. Our team of professionals have done the footwork and are ready to jump into action for you, from inspectors to property management and everything in between. If you prefer, you can just sit back and relax while we take care of everything. Send us a message today to get started!