You should be really mean and just keep bidding him up next time. Make sure you know his threshold so he doesn’t stop and you have to buy the property. Oh, and go “YUUUUP!” every time too. I saw a guy on TV do that for a few seasons and he was the king of jerks.
I really like the idea, a smarter strategy!
I would suggest this...
If you aren’t on the same level as him take a step back, in terms of returns...
For Example, a flipper (pro flipper) might want to make at least 30K on a deal.... if you bid on the same deal he will win vs go to the deal that will only make 15K ..... you are making money and building something but for him it’s not worth it....
Maybe try to figure that part out and go for the deals that he wouldn’t look at....
That’s what I’m trying to do now go for smaller deals that someone who has more money and resources would be like “not worth it for me”
@Habbak Burs I think that would work really well for me. You are right a deal can still be a deal even if the profit isn't as high. My goal is buy and hold for long term. This makes total sense to me as the properties he buys have some really good profit potential. I may not have a contractor company or a real estate company like he does, but these smaller deals will add up over time to help me reach my goal. Sometimes I spend too much time looking for those great deals with big profit vs the smaller ones with great potential..
Originally posted by @Brent Paul :
As the title says I am wondering how to compete with all the cash buyers in my area. One of which owns over 90% of the apartment buildings as well as almost all commercial buildings in town. He also frequents the city auctions and pays cash outbidding anyone that even tries. Im guessing he gets off market deals too. I tried to start a conversation with the guy, but he is grade A jerk. Hard to believe someone so arrogant can be so successful.
How do I compete with that?
Cash is the most powerful think on this planet. There is no competing against it. I would advice to learn how he came what he is now and work to replicate it. Who cares if his personality is rough, cash is king for a reason - there is nothing that tops it.
If I had $1M in the bank and went to Wells Fargo and told them I want to buy $1M in notes, you think they would turn me away? Heck no!
Originally posted by @Mario Am :
@Brent Paul what does arrogance has to do with success?
Its so funny that people just LOVE hating successful people.
Small people hate successful people
Smart people get motivated and learn from them.
Hate comes with success. When people I went to high school with found out that I make far more a month in income than anyone else from high school class some started to outright hate. Their stupidity was so bad I left Facebook. Same thing happened with immediate family and relatives. They find out that I am doing way better in life than they ever thought I would and started talking behind my back. I kicked all of them out of my life and I am as happy as ever and I am on a mission to crush it in life and leaving a lot of people behind.
It's the way it goes when you become successful. There is a reason for the saying "its lonely at the top."
@Brent Paul Marry his daughter.
@Brent Paul it’s funny you ask that cause my partner and I recently went through the same thing in NJ. Most cash buyers are going to go in below asking, so to make your offer more appealing as someone who is getting a mortgage, don’t be afraid to offer over ask price (if your cash flow goal still makes sense). And also, offer to put all your down payment as earnest money. For example we offered $30,000 over ask for this triplex, and we chose to put our entire 5% down as earnest money, and the seller accepted.
Personally I wouldn't go head to head with him in his territory. Where I work and live we have the same thing...I went 15-45 miles out and there are deals to be had.
Make a lot of offers
@Brent Paul the only way and you still are at a big disadvantage IS HML.......... Even then you are not cash. You still need approval , inspections etc. vs as is close in days , ...... cash is king
In an "efficient" market especially when seller agents are involved, deals get done on expected value: likelihood of closing x selling price. I have outbid cash buyers on several occasions by both offering a higher price and marketing myself as an efficient buyer who will perform and who has track record to back it up.