Is There a Lot of Competition in Real Estate Investing?

Yes and No. There are many people out there who buy and sell Real Estate. However, there really aren’t that many who have a good strategy for being a successful Real Estate Investor. If you do not have a solid strategy, and if you restrict yourself only to your local Real Estate market then yes, you could find yourself with a lot of Real Estate Investing competition. If you have a strategy in which you examine markets throughout the country, and where you have access to safely and easily search for properties nationwide right from the comfort of your own home then no, there’s almost no competition. 

How to Beat the Real Estate Investing Competition

For example, if you happen to live in an area where foreclosures skyrocketed in the past few years or perhaps if your area happens to have a big renter vs. owner population, then there may be limited opportunity there due to a lot of competition. 

Conversely, when you open up your Real Estate Investing strategy to encompass a nationwide scope, you can live in that same exact area, but now you have access to properties and opportunities with no or very little competition. 

For example, you can reside in a small town in rural Texas, yet you can become a successful investor in suburban Ohio, northern Florida, or in the city of Chicago—the possibilities could be endless. 

Why would you want to do this?

Discover Hidden Opportunities Others Don’t Notice

There are many incredible Real Estate investment opportunities located in various regions throughout the United States that go completely unnoticed or are found only by the most savvy investors. 

There are a few reasons why this happens. One big reason is that properties might be located in what seems to be undesirable areas, and many investors do not know enough about how to do the proper research to find such properties. Therefore, many potential investors lose out on opportunities to invest in hidden gems.

Earn Big By Thinking Big

In conclusion, if you have a strong strategy in which you look for Real Estate investing opportunities all across the United States, you can beat the competition and achieve Investment Real Estate success. 

It might seem daunting but in reality, it’s not difficult to do once you understand the process.

Is “Flipping” Homes Illegal?

This is a common question from novice investors just looking into investing in residential Real Estate for the first time. The answer is NO—Flipping, also known as wholesaling, is a very legitimate, lucrative and LEGAL business practice.

Simply put, flipping houses involves a Real Estate investor who purchases a property in need of some repairs, who then makes the repairs to improve the property and increase its value. Then, due to the property’s increased worth, the investor is able to sell the property for more than he or she purchased it.

The other, even quicker form of wholesaling involves some different processes the investor can use to complete his or her Real Estate deal. The investor could wholesale a property by selling it directly to another investor by assigning the contract. Or, the investor could simultaneously purchase and sell a property to another investor who sells to a final buyer.

It is important to note that there are dishonest Real Estate investors, agents, appraisers, lawyers and/or mortgage officers out there who do illegal things to make money illegally in Real Estate. Watch out for appraisers who inflate home values; investors or loan officers trying to pass funds “under the table” in order to get unqualified buyers into the transaction; or lawyers who are willing to falsify documents necessary to complete a transaction. All of this is illegal.

Take the necessary steps to ensure you have as much knowledge as possible before stepping into your first Real Estate investment.