Competing Against the Big Players-How?
I was just talking to a local real estate agent in the Chicago market and she informed me that the houses I am interested in are being bought up at prices over asking price by a hedge fund and other bigger players that are seasoned and well established. I am trying to just get started and am discouraged that I am trying to buy in the same market using the 70 percent rule whereas the hedge fund is buying 400 houses a month, paying above asking prices, and mostly sight unseen. The only difference is that they are holding them for rentals rather than flipping them back to market. Nevertheless, they have the quick funds, relationships to do the work at a cheaper cost since their contractors are doing volume, as well as obtaining materials from China at a discounted price. One of these types of players alone is enough to be overwhelmed and yet there are others that are also knocking on the same market door. Moreover, the market is only picking up which means things will get even tighter. Help! How do I compete and not get quickly discouraged?