Article by Tim Houghten
How To Scale Your Real Estate Investments In A Highly Competitive Market
Are you looking for more investments and ways to grow your real estate holdings? What are some of the ways that you can maintain and scale, despite the 2020 mayhem?
Brandon Cobb’s company, The House Buyin Guys, has been able to successfully sustain and even grow his real estate business by double-digits through the pandemic and chaos of 2020.
How has he done it?
The House Buyin Guys
Brandon Cobb and his co-founder, Vagif Seidov, have been wholesaling houses to other investors, rehabbing properties, and creating win win solutions for his investors in the Middle Tennessee real estate market for years.
Prior to getting into real estate, Brandon sold medical devices. After losing his job in medical device sales, he transitioned over to real estate. Brandon found his unique sales skills sharpened by the world of medical device sales gave him a unique edge in the real estate industry.
Brandon built his company based around that sales approach, something the real estate industry lagged.
Since then, he and his business partner have done over 100 deals in this space, and during our exclusive interview, Brandon shared how business has been picking up through the pandemic.
He says that the local Nashville market has kept blowing up, with growing demand despite the pandemic. As of October 2020, they were still seeing new deals going under contract in one week, if not within one day.
Brandon and his team challenged themselves to complete a $51,000 renovation in just 10 days while filming every day and posting the daily walkthroughs for all to see on his Facebook. After having huge success with that renovation, they challenged themselves to do two seven-day flips simultaneously.
The two seven-day $32,000 flips were a failure because they took nine days to actually complete, but to Brandon and his team they were a huge success because they learned a lot about how to better systemize their rehab processes and become more efficient. He and his team are always pushing the boundaries of what is possible in the real estate space.
So how can you compete and win deals in this highly competitive market?
Tips For Winning In This Competitive Market
This has been an interesting year in real estate for investors and business owners. During crisis, many fold and lose, and few know how to use the opportunity to create new levels of wealth.
Right now, it is an extremely competitive real estate market. Since the birth of the travel roadshow, when real estate gurus have come to town and pumped out hundreds of new investors in a weekend, it’s become much tougher to find deals.
So, how do you still get the deals?
Here are some of Brandon’s top tips.
Do What Others Won’t
As with any business or career, standing out and blazing a trail for yourself and becoming a valuable go-to resource for your clients is all about doing what other people won’t.
You can put in the extra hard work and hours, be more responsive, and go the extra mile to make customers happy, but it starts with identifying what your customers’ want that competitors are not giving them.
Brandon says one of the big challenges his clients face are tenants. Many retiring landlords are willing to sell, but buyers want the property vacant. When there is a tenant, it can leave the property in limbo.
Brandon’s competitors make offers based on the house being vacated most of the time so his company started offering tenant relocation services with their offers. In his recent feature in Forbes, he says this alone can get you a $10,000 to $15,000 discount on the price of the property and win you the deal — if your willing and able to help the tenant find a place to live and cover moving expenses.
Review Your Past Deals
When was the last time you went through your past deals and evaluated what went well, what didn’t, and what you could have done better? What about which deals really made the most money? Or what happened to those properties after you exited and sold them off?
You might be surprised at what you find. Brandon certainly was. They found they missed out on a deal that would have made $107,312.
Even more surprising, was the fact that they came across deals like this two to three times a year and were completely missing them! So, they adjusted their strategy when they came across these special opportunities, and after acquisition, and rehab costs are now able to sell them for almost double, with around $70,000 – $100,000 in gross profit.
Select Your Customers Carefully
How selective are you being with the customers you take on?
Brandon’s construction company, HBG Construction offers rehab services to others outside his house flipping business. Savvy business owners and independent professionals learn that they can work much more efficiently, profitably, enjoyably and with less risk and stress, if they are more selective in who they do business with.
At first, it may seem like a good idea to take on various jobs within your space and Brandon did just this. His company would service builders, home owners, rehabbers, basically anyone who needed work done on their house — until it became a big headache..
Just trying to work with anybody and everybody can be a big trap. You might feel busier chasing the money, but that doesn’t mean you’ll really net more money.
Brandon suggests figuring out who your ideal customers are, and to fire everyone else. Brandon discovered that his construction company loved working with other rehabbers.
Because Brandon is an investor himself, he was able to understand and pinpoint all the pain points rehabbers have when it comes to dealing with contractors. Brandon’s construction company now works exclusively with other rehabbers on their flips and that moment when he fired all his other customers changed everything. Now, his team deals with customers whose needs they understand and serve best.
Grow Your Referral Business
Referral business Is the best business. Referrals cost the least amount of money to generate, are the easiest to handle, and are the easiest to close! Brandon’s company started their own referral program using hand-written thank you cards to all their customers and occasionally following up with a phone call to ask if they know anyone that may want to sell their home.
His company uses email drip campaigns to stay in touch and hands out handsome referral checks every time someone brings in a referral. They broadcast the experience of the person responsible for the referral receiving the check, which prompts others to refer business!
This method alone has allowed Brandon’s company to grow by double-digits with NO INCREASE IN SPENDING.
Leverage Other People’s Time and Money
In addition to leveraging other people’s money, smart real estate pros and CEOs learn to leverage other people’s time, expertise and exposure.
There are many in your market who have built up a their own network and doing their own marketing. Work with them instead of competing against them.
He specifically points to real estate agents as an example of this. While many real estate investors feel they are at odds with REALTORS, you can actually help each other and negotiate win-win deals If you understand their needs.
We are in an interesting period where the real estate business and country is evolving and changing. Many will fail. For some, this year will set them on a completely new trajectory for success and wealth.
These tips can help you protect and grow your real estate investments, regardless of the mayhem happening out there.
If you are interested in learning more about how you can get added on Brandon’s list to receive off-market wholesale properties in Middle Tennessee, or learn more about how you can receive passive income secured by real estate through Brandon’s company, you can contact him at: Brandon@thehousebuyinguys.com.
For more tips, follow Brandon on his Facebook page at: https://www.facebook.com/brandon.cobb.3950