Fear of competition: How to overcome it?

21 Replies

Good morning members,

For those who have deals already under your belt, did you ever have a time when you were beginning where you saw how much competition there was in your local market and think to yourself "how in the world am i even going to compete or find a deal in such a competitive market?!"

How do you overcome such fear and move past it?!

@Daniel Mendez

For me, all fears/uncertainty (so far) have been overcome by having a strong enough “why”.

Which is why it’s imperative that you start by figuring out why you’re interested in RE in the first place. What are you doing this for and what is your ultimate goal? If you’re “why” is meaningful and you have a clear idea of what you’re working towards then you should be able to overcome your fears.

Also, if I’m feeling lazy/uncertain/etc then I remind myself what will happen if I DON’T take action which gets me moving very quickly.

-Dan

@Daniel Mendez

You are the product of hundreds of thousands of years of competition through the evolutionary process. You would not be here typing this question if you did not have the ability to deal with competition so I don't understand why you would be afraid...

If the fact that other people also want to buy RE is threatening to you, I'd re-evaluate the answer to "why" you are investing, because it may not be for you at this point in your life.

"He who has a strong enough why can bear almost any how" Nietzsche

Repetition is key. The more bids, offers, and sales you get used to the process. Offer low if its reasonable. Sometimes its not. Depends on the market. Id recommend offering aggressively both low and reasonable just for experience. Everyone likes some chase eith counter offers. 

I also realized after 5 houses that an absolute bottom dollar wasn't always worth it. Paying 500 more on a house is 1 extra month of rent. Buy the house and look for the next deal. Each deal done bumps up your experience mentally and also proves that you can close to others. I bought my first apartments easier than i did any house because its all the same basic process.

@Daniel Mendez

I was just arrogant enough to believe that I wasn't the stupidest and least industrious person involved in real estate in my town. This joke helps.

----------------------------

Two men are on safari in the jungle and they hear a tiger cough nearby. One of the men stops, drops his backpack and opens it, and takes out a pair of lightweight running shoes. He sits down to put them on. The other man laughs at him. "Are you crazy? Do you think you can outrun a tiger?"

The first man finishes lacing up his sneakers and stands up. "I don't have to outrun the tiger. I just have to outrun you."

A different perspective: competition means you always have a buyer when one is needed. 

It is normal to feel fear. The only way to handle it tho is to move through it. 

Basically “feel the fear and do it anyway” is my motto when approaching goals that I have set that scare me a bit :)


good luck. 

@Daniel Mendez

There’s competition in every endeavor. Realize that only a small percentage of people will be real successful - once again, in every endeavor.

All you can do is to commit 100% to being at the top of the heap. Someone has to be. Why not you?

Answer: Find a niche. For example, If there are 20 fix n flippers in your neighborhood, you should be concerned unless you can do something different and/or better than them. There's easier ways to make money running a business than to have to bid so high on houses to get them that you are taking unnecessary risk.

If you find a niche in real estate, doesn't matter what it is, you'll be serving people that others aren't serving. Little competition.

Originally posted by @Bill F. :

@Daniel Mendez

You are the product of hundreds of thousands of years of competition through the evolutionary process. You would not be here typing this question if you did not have the ability to deal with competition so I don't understand why you would be afraid...

If the fact that other people also want to buy RE is threatening to you, I'd re-evaluate the answer to "why" you are investing, because it may not be for you at this point in your life.

"He who has a strong enough why can bear almost any how" Nietzsche


Nietzsche is dead.

God.

 

Originally posted by @Daniel Mendez :

Good morning members,

For those who have deals already under your belt, did you ever have a time when you were beginning where you saw how much competition there was in your local market and think to yourself "how in the world am i even going to compete or find a deal in such a competitive market?!"

How do you overcome such fear and move past it?!

I've been flipping, buy & hold, subject to - you name it for 25 years and I RARELY run into a competitor. True when I was in Seattle, true in Texas and true in Phoenix. Methinks you are over methinking this.

Go out and prosper!

 

@Daniel Mendez Keep your head down and do your work everyday and you will make strides. Don't worry about things you can't control because that takes up space in your mind from do the daily things you need to in order to become established. Over the course of time chipping away day after day makes a huge difference. 

I know this sounds cliche, but most people are not willing to take this approach and end up getting disenchanted worrying about things that are outside of their control. 

Who cares if there’s competition? That is the least of your worries in real estate kid lol do you realize how many deals go under the radar everyday in your town and no one is even aware of it ? There’s millions and millions of dollars out there and you just need the skill set to take advantage of it . Geez man get a grip ,Don’t worry what everybody else is doing . You don’t need a core four or a dream team or a even an agent . Get out there get a deal under your belt And stop postulating over perceived problems .
one thing is for sure ,You’ll never have to worry about competition if you sit on the couch and don’t actually get started 

I came from an industry that if we were not delivering the best product on the market we would fail to make money nearly immediately.  Any conversation with competitors could be quite hostile with people gleaning details that will allow them to take the market.  Most RE markets are not quite this harsh. They behave a bit more like farming, where technically everyone is completing, but the community shares information and is willing to help. 

That said you should be delivering a product that puts you on the front end of the absorption. You can segment the market to your product ie a 3/2 within 50k price range and see how many homes sell within a month. You want your product to be within that first month. 

@Daniel Mendez honestly for me if I have a fear of anything I usually know that means I’m going in the right direction. There will always be competition but like some people are saying in this post its all about repetition and always know there will ALWAYS be a deal out there. Just have to look at the situation, find an exit strategy, and structure the deal in a way that works for you and solves the sellers problem.

I don't understand how fear even comes in to the equation. For each property you offer on and do not get, you learn. You get better- your offers get more creative and your chances increase. I've never even thought about having fear during the process, never crossed my mind. 

@Daniel Mendez totally understand where you are coming from . I was living in Manhattan NYC when I decided to start investing and trust me if I had fear of competition I wouldn’t have left my apartment ! Instead I embraced it and it drove me to push harder to make it happen . I invest out of state which is something you could consider if your local market doesn’t match your investing criteria . There will always more deals ! Plenty to go around :) good luck !

@Daniel Mendez . Back in 2002 and years following when I started flipping there was a lot less competition for sure. I used to find bank owned listed properties that sat for 5-8 months and I would wait it out and then pick some up cheap. Now, with all those "flip that house" shows everyone wants in and people over pay, so the MLS is no longer my friend. You have to work harder and smarter and off market deals are better returns. I have done 5 flips this year and all off market with varying stories how I secured. The key is keep flipping those rocks over until you find the diamond in the rough! They are out there but you have to search harder.

@Daniel Mendez

It took me eight months to find my first real deal, which I purchased from a wholesaler here in Rochester, NY.

During that time I kept hearing the same phrase “there’s more than enough to go around”. It turns out that it was true.

While I recognize that it’s frustrating in the beginning, it will give you the motivation you need to learn how to engineer your own deal flow.

One piece of advice; be sure to remain loyal and return the favor of those who help you out in the beginning.

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