I was reading the "28 ways to build a buyers list" thread and decided to try googling "We Buy Houses Syracuse, NY"... stupid that I haven't already checked! There's a company that serves that main cities in the state and it seems pretty large and professional. I feel so discouraged, my husband and I feel really passionate about beginning REI in wholesaling but is there ANY chance that we could compete with a company like that? Any successful RE wholesalers here who live in a city that has a major company that does wholesaling? TIA
I am facing somewhat of the same issue except I don't really see it as discouraging. I think of it as a benchmark for what I will be in the future. That being said, there are tons of ways to build your personal brand and set yourself apart from those big companies.
Being personable and mastering negotiation skills can set you apart and help you close deals that the big guys couldn't. People enjoy being genuinely appreciated. If you make a seller feel important and can deliver on your promises on all cash and a quick close, then absolutely you can compete with the big guys.
If the seller objects your offer or wants to go with the big name investor, make them understand why they should be doing business with you. Know how to field their objections.
In every big city there are big companies and small companies. Dont be intimidated by one company. They may do 20 or 30 or 50 deals a month. You only need to do one or two or three at 2k - 5k each. That should be plenty, right?? You are not competing with them.
Market to distressed sellers, get something under contract, then take it to your local REIA and sell it. As you meet others at your REIA, you will find cash buyers. Dont focus on building a list before you find a deal. Someone once told me, "if its a deal, somebody will buy it". The hard part is finding good quality DEALS. When you find one, finding the buyer is easy.
Also remember that a lot of times big guys get lazy and/or complacent. I know investors and agents who don't return phone calls or follow up with hot leads. You're starting out and you WANT that business so work twice as hard and get it. Don't be discouraged.
All you have to do is do it better! Not even in every aspect, just one or two, and you'll be doing well. Also, focus on a niche or one small geographic area to start and become expert in that niche or small geographic area. Keep in mind, the larger a company gets, the more that (usually) slips through the cracks.
In my opinion there is plenty of room to operate in the world of real estate investing. Sure there are big boy companies out there but all you need is one buyer, right? Go out and find a deal and market it. If it's a good one you should find buyers. Buyers are buying to get deals, it doesn't matter who the seller is.
And sometimes perception is great than fact. Just because you perceive something doesn't make it true...
Good luck, you can do this.
I have a Jack in the Box, Burger King and McDonalds within 2 blocks of my house. They all seem to be getting enough business. Don't let them scare you off. Go get it! With BP, hard work ethic and a great attitude, you will make it!
Keep us posted
In addition to the previous points, depending on the company, you may even be able to wholesale some of your deals to them.
Add them to your potential buyers list and examine their own marketing techniques/practices to see if there is anything you could apply to your own business.
Don't let a bigger company out there discourage you. There are different levels for every industry and even they started out small at one time. :)
I honestly love some healthy competition. The thing with a large company is a good majority of home owners would rather work with an individual.
"Hi my name is John I am the acquisitions manager at ________. Your house needs work and you can't sell it without me. I'll give you ______. "
"Hello my name is Jade. My husband and I help folks sell homes when conventional means don't make sense. With us you don't have to worry about open houses, loans falling through, or low ball offers. From our experience your home needs roughly _____ thousand dollars in repairs. The big guys would probably give you _______. Knowing that what do you think is a fair price?"
Which guy would you rather deal with? The guy who drove up in a Mercedes and walked through your flower bed or your "next door neighbors".
Proof: Using the approach I outlined in option #2 we had a client tell us she would take 11k less than what our max offer would have been. She still calls us thanking us for how quickly we moved her house and the fact that we paid cash.
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