How Can I Ever Compete with Experienced Real Estate Investors?

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One thing I often hear newbies say is that there is no way they can compete with the more experienced investors.  These newbies are of the mindset that we more experienced folks will simply find, beat them to, or outbid them for every deal out there.

This attitude, while somewhat natural, is completely wrong.  Plus, it leads to fear and newbies with this attitude will ultimately do nothing if they are not quickly set straight.

So why is this attitude wrong?

Well think about it.

Sure, those of us who have been in the business for a while have a lot more experience, and yes we are way ahead of you.  But how do you think we got to where we are today?  We had to start at some point.  And you know, we were thinking then the same thing you are today, that there is no way I can compete or break into this.

But we did!

Here is Why

  • There are just too many properties out there.  Just in Memphis, TN alone there are over 300,000.
  • There are just too many deals out there.  With so many properties, there is no way any one person, group of persons, hedge fund or whatever can get them all.
  • Investors can get busy with certain projects.  I may have just bought a 12 unit apartment building that needs a major rehab for example.  That will likely take me out of the market for a time while I get that property fixed and rented.  That creates an opportunity for someone else.
  • Investors come into or get out of the market all the time.  This creates opportunity for other investors.  Some people retire, get fed up, or otherwise ready to move on because of a divorce, death or a host of other reasons.  Again this creates an opportunity.
  • Other investors mess up.  They fail to learn about positive cash flow.  They get in over their heads.  They file bankruptcy.  While these can be sad and depressing stories, the world marches on creating new opportunities.

This is the beauty of the real estate market, or any market for that matter.  It is always changing as people make their everyday decisions and take action.  These constant changes create a myriad of opportunities that no one person or group can ever hope to model or capture.

Your job as a new investor is to first get your mind right and then get creative.  Find ways to capture these opportunities.  Make connections with other investors.  Get to know your market. Take action!

Before you know it, newbies will be looking at you and wondering, “How can I ever compete with them?”
Photo Credit: HckySo

About Author

Kevin Perk

Kevin Perk is co-founder of Kevron Properties, LLC with his wife Terron and has been involved in real estate investing for 10 years. Kevin invests in and manages rental properties in Memphis, TN and is a past president and vice-president of the local REIA group, the Memphis Investors Group.


  1. The best advice I can give is to make sure they are looking for houses every day and known what the market is doing. If a newbie is looking for a house in a particular part of town for 50k, but investors are paying 70k, then it is probably unrealistic they will ever get a property. I have also seen newbie’s over analyze a deal. If you want to get a property and see one you want, be ready to move fast. Over analyzing a deal for even 1 day can allow another investor into a competitive bidding situation. But the absolute best way to find a deal as a newbie is to find off market deals–which is a whole another blog topic on how to find wholesale deals.

    • Kevin Perk


      You present some great insights. Newbies SHOULD be looking at properties every day. They have to learn what is available and what the market will allow. You often have to look at dozens before you make an offer on one that makes sense.

      Analysis paralysis is a whole other topic. The only thing I can say is trust yourself and trust the numbers. If it they make sense, go for it!

      And you are right about the off the market deals. Once it hits the MLS it is over for many investors. Our job as investors is to find those deals that have not hit the market yet. But like you said, that is a topic for another post.

      Thanks for reading and commenting Alex,


  2. Another type of investor is like me. I may buy five rentals this year and none the next. I may sell one this year to buy three more and then play for a year. I tend to invest in spurts because i like to play. When I get bored of playing, I start investing again. I did not “retire” at 50 so I coild keep on working, I retired so I could work when I want to and play when I want to. There is always room for more investors, so get in the game!

    • Kevin Perk


      Good point. Everyone is different and gets into and out of the market for a host of different reasons. Like I said, this creates opportunities because when you are not buying, perhaps I am.

      Thanks for reading and sharing,


  3. Kevin,

    You say there are plenty of deals out there but how do I to know a good deal from a bad one if I have no REI experience? Where are these deals that are used by REI promoters to lure people in? Like buying 120K house for 60K + 10K in repairs? I could not find any in my area. MLS does not have them, craigslist is full of other investors and wholesalers trying to sell/rent their houses.
    Do these deals exist at all?

    • Kevin Perk


      There are plenty of deals out there. You just have to train yourself to see them. I can remember before I got into real estate I would drive by properties all the time and not give them another look. Now, I give them another look. I look for things that signal distress for example. One of the best deals I ever got was on a duplex that was sitting right under my nose for years. Before I trained myself, I never saw it. Once I saw it I took action and that property has provided me with many happy returns.

      The low hanging fruit you describe is out there, but there are a lot of folks trying to pick it. If you are diligent, you will get one every once in a while but for the most part, they are few and far between. But, you can get plenty of good deals if you know what to look for. Take time and learn your market. Go and look at dozens of properties. Ramp up your marketing to target potential deals. Suddenly you will see the opportunities and they will come knocking. All of this takes time, so do not get discouraged and keep at it.

      Good luck and use the resources at BP to help you. We all want you to be successful.

      Thanks for reading and commenting,


    • melodee lucido on

      I remember thinking that in the beginning—-how will I know a good deal from a non-good one. I have two answers now:

      1) Study every single day—not 5 days a week, not six—every day. Immersion is the best teacher—-other than the great folks here on BP. There is the free beginners guide and people you can connect with in your area at your fingertips right here.

      2) Fail your way to success. No, really. I got SO dang bored of sitting wishing I could have success I just got started. I picked a niche and a farm and started marketing as my budget would allow. I can honestly say that I have learned more from the deals I DIDN’T do than from the ones I did.

      Best of success to you.

  4. Negativity will only bring negativity. If you say,”I will never find a good deal.”, or “Someone always beats me to the good deals.”, then you will only prove yourself right. You must take action to be successful. Sitting on your laurels will get you nowhere fast. However, if you make that extra dial, write that extra yellow letter or look at one more property then you have increased your odds at success. Nobody is going to stuff your pockets full of money, hand you a killer deal and nudge you in to the closing office. You have to put in the time and effort to learn first then you have to put in that work.

    The above statement is full of the things I say to myself to keep me going. I want dozens of rental units all paid off and cashflowing like crazy, but I need to remind myself that I have a lot to learn. I made huge mistakes turning my first home in to ba rental property. I was outbid numerous times until I found the perfect house that is my new home. I kept looking and I kept trying. I cannot wait for number three, which I hope will be a quad.

  5. Silvestre Madrid on

    Awesome post! Being a beginner I can definitely appreciate this. It’s all about the mentality, willingness to learn and not being afraid to jump in. Gotta start somewhere “A journey of a large portfolio starts with the first property!” Encouraging words thanks Kevin

  6. Perfect example. Yesterday I got a call about a house in an area that I like. I did my research on valuation, taxes, insurance cost and rent range before I got out there. Before I went to the house, I knew what my “all in” price needed to be. I met the owner at the house, did a walk through and made an offer while standing in the front yard. He was asking 80k, the house is worth $125. In my opinion, it is located in one of the best rental areas in the County (good schools, low crime, mostly owner occupant areas, long tenant stays). House could be made rent ready for 3k, but I go a little over the top on what I consider rent ready, so I budgeted 10k after doing my walk through and made an offer of 75k. 10 minutes later he asked if I could pay more and I said 75k was my best offer and he accepted. Could I have bought it cheaper? Maybe, but I was not willing to risk getting a off market deal to save 3 to 5k. MLS deals in this area go for 85k out of foreclosure. I am in the business for the long haul, so passing up a deal to save 3 to 5k makes no sense; afterall, 5k difference in price is only a difference of 1% on the net return.

  7. Kevin, to answer your question how I got my phone to ring really had nothing to do with me. One of my leasing agents rides around with a “We Buy Houses, Quick, Cash Offers” on the back of his car. Someone saw that sign and called him.

  8. I recently began investing in real estate and decided that in order to start on a firm foundation I had to be different. While the town I lived in was up and booming, real estate was becoming more and more expensive. So what did I do? I went to the town next door and started buying!!! Yesterday I was at an auction where two, two story buildings in downtown sold for $33k! I started the bidding at $12.5. This blog is very true…there is always enough real estate to go around.


  9. Kevin, Your post offers good encouragement to new investors. I often say that RE investing is beautifully dynamic…. and often use the weightlifter analogy… You start one day unable to bench press 50lbs, if you stick with it (read BP blogs, read books, look at hundreds of houses, due diligence etc) before long you will be able to lift 200lbs. I commented to a newbie recently that all of us started in his shoes but eventually had to go back to the shoe store to get bigger shoes as we became more experienced.

    • Kevin Perk


      Nice analogies. We all know what it is like to be a newbie. And we know that newbies cannot hear this sort of thing enough from us more experienced folks. Hopefully you and I and others will get some folks to take action.

      Thanks for sharing and the kind words,



  10. Sharon Vornholt

    Kevin –

    This is such a good post. We were all newbies at one time; we all had the same challenges and fears.

    I especially like the point about investors “coming and going” in this business. You pointed out a lot of the reasons they do this, but the important thing folks need to understand that it doesn’t matter what the reasons are; it is just true. They come and they go; they are active then inactive. Like you said, there is opportunity everywhere.


    • Kevin Perk


      I know it’s true because I come in and out of the market all the time as I pick up new properties and projects. Once I get them, I have to focus on getting them up and cash flowing before I get anything else. So, I can’t get them all which means someone else has to pick up the slack. 🙂

      Thanks for helping to make the point to the newbies out there and thanks especially for the kind words,


  11. My MLS has about 17,500 SFHs currently for sale.
    These aren’t likely the best deals, the 100x as many that aren’t probably are.

    There are more than enough places for anyone that wants to get in the game!

  12. Kevin,
    What a great article. I like the simple down-to-earth expertise you shared. In the beginning everything is so overwhelming—until we start doing it. That’s when the real learning begins.

    My favorite market is the off-market—it’s like an Easter egg hunt every day : >

    Thanks so much!

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