Great bargains are at the top of the list for real estate investors who seek to grow their portfolio, realizing the most return on their investments possible, competition is fierce. This means that you will need to stand out in the crowd when a new gem comes along. You’ll also need to have your cash readily available, speed is an advantage of being a cash buyer, you need to maximize this incentive at the negotiating table. Here are 5 ways Detroit investors can compete with other cash buyers
Another approach Detroit investors can use to compete with other cash buyers by offering the incentive of working with them on their timeline, being flexible about moving dates, or anything else that sweetens the deal for the seller. Another opportunity to show the seller that you are very serious about closing is including all the steps you will take to close quickly or anything else that would make the process easier on them.
Let’s face it, the fewer demands you make, the more likable you are! The power of cash in real estate investing allows for much more leniency regarding the condition of the property. Depending on your confidence level in assessing the true state of a property, you can offer to skip an appraisal or even an inspection as a contingency of closing the deal. Either limiting or completely eliminating contingencies on your offer is an enticing way Detroit investors can compete with other cash buyers.
For sellers at the closing table, it matters little to them what the source of financing was their final payoff. For this reason, you will want to bring the advantages of cash offers to the forefront when writing your offer. Let the seller know that you will cover all the costs involved in the deal and you will make yourself available, to avoid delays. Because people are emotionally invested in the property as well, describe how much this home means to you and how you will take care of the property. Promoting all of the ways you intend to make working with you more attractive is a good way Detroit investors can compete with other cash buyers
Another way Detroit investors can compete with other cash buyers is to simply come straight to the point. Often, sellers list an item with room for negotiations built-in, likewise, buyers may lowball, expecting the sellers to come back with a counteroffer. While traditionally home sales involve back and forth negotiations, this can be a long process and time isn’t on your side if you want to be successful. Be direct, forget about playing with the numbers, and clearly state your bottom line offer. Due to the nature of this market, oftentimes the property is in a state of disrepair, so you will need to be realistic about the budget necessary to turn a profit when calculating the winning number for both you and the property owner. you will also need to have a team assembled to do the work unless you are able and have the time to devote to the project.
Know Your Market
When it comes to grabbing a bargain that’s just been listed, you don’t want to be a day late or a dollar short! The best way Detroit investors can compete with other cash buyers is to keep on top of the market and be the first offer. you will need to be prepared to be the early bird. Understand that it takes dedication to know and understand the market on an intimate, daily basis, to enable yourself to be the one scooping up deals ahead of the competition. Just as important as knowing your market, is to educate yourself as much as possible on the target property as well. There are several resources from which much information on any particular real property can be attained. you will also want to be certain that you are not getting into a bottomless pit, so you will need a team of reliable professionals, such as appraisers and inspectors that offer an extremely quick turnaround. The more familiar you become with the problems that can rear their ugly heads during renovations, the better you will become at identifying properties that truly qualify as a great bargain. Likewise, you will come to understand how the weakest link in your business model can affect your bottom line. It won’t take long for you to know when to move on to a new service provider, building a strong inner circle.
We make it easy! If you’d prefer to improve your odds in locating bargains and growing your real estate portfolio, why not let us help you? Investors can compete with other cash buyers and find great properties by working with Freedom Acquisition Management LLC in Detroit. Learn more about how we can help you by sending us a message now!