With a home building boom underway will real estate investors be able to keep up and successfully compete in the New Year?
Home builder confidence has continued to build over the last year as new construction blossoms from new planned communities to luxury condos. This is a trend likely to continue to balloon in 2013 with the current rate of building, still a fraction of that in the last real estate boom and well below the number of units needed to keep up with normal levels of household creation and demand.
Home builders and giant developers have huge budgets; they are big on marketing, know how to build partnerships, are trusted by the public despite often being underhanded and are now getting in on all side of the transaction. By offering mortgage lending and getting in on the insurance game they are now also able to position their properties as attractive alternatives and offer delicious looking deals.
So can real estate investing pros really compete and win against these giant competitors?
Absolutely; even at the height of the last boom real estate investors when home builders were enjoying their best years ever small and solo real estate investors were pulling in money hand over fist.
However, it is still critical for investors to be ready with the right strategies and tactics.
Real estate investing pros who are truly successful will build on their real estate education and market knowledge to learn their competitor’s tricks and games, be able to explain them to potential buyers and become valued resources.
As in any battle it is smarter not to take bigger, better armed opponents head on. Instead look to dominate niches around them. Perhaps even team up and exchange referrals with them or even acquire the contracts on prime property and sell to them.