In many industries, once you figure out how to successfully and profitably navigate the business, the next challenge becomes keeping those insights from your competitors. You talk to attorneys, draw up confidentiality agreements, file for patents – whatever it takes to make sure your knowledge and wisdom don’t fall into the hands of others in the industry.
Worried about the competition? Click here to get on the Right Path by signing up for one of our educational events.
In real estate, however, it’s different. The educational aspect of real estate investing alone is an industry unto itself, but if you stop to think about it, it defies normal business logic. If a person is actively investing in real estate, why would he then train others in his industry to do what he is doing? Isn’t he, in essence, training his competition? If so, why would a company like Right Path bother training other real estate investors if those investors are just going to use that education to saturate the marketplace with offers? Won’t the deals become harder to find? Won’t the competition become too fierce?
You would think so, but that’s far from the truth. The reality is that you really don’t have much competition in this industry. We’ve been sharing our experience and wisdom with students for almost five years, and while we do occasionally run into some of our students while we’re buying properties, it doesn’t happen as often as you would think, and it certainly doesn’t happen enough to affect our own opportunities.
In Houston, there are around ten thousand houses a month that are bought and sold on MLS, and that has only increased since Hurricane Harvey hit. Ten thousand properties is more than enough for all of the Houston-area investors.
Consider how Houston House Buyers fits into the market. We’re not a large-volume wholesaling company, but we are quite possibly the largest independent home buyer in the city of Houston. Even we are only buying ten to twenty houses a month. That’s ten to twenty out of the entire ten thousand houses that close each month in Houston. It would take a thousand investors doing exactly what we’re doing in order to saturate the market, and most investors are nowhere near that volume. That’s how plentiful the deals are.
Ready to learn how to find deals the way Tom and Jason do? Click here to sign up for one of our upcoming educational events.
So marketplace competition isn’t the issue you think it is. Instead, your biggest competition is between your own two ears. What are you telling yourself? What choices are you making to run your business? What are you sacrificing? How long and how hard are you willing to work?
For some of you, your biggest competition is your W2 job. Your 401k. Your corner office and what you think is “job security.” It’s just too easy to keep clocking in.
For others of you, your biggest competition is what you’re watching on TV at night. Your recliner. Your cozy slippers and nightly bowl of Blue Bell. It’s just too hard to put down the remote.
Are you ready to put down the Blue Bell and the remote? Click here to sign up for one of our upcoming educational events.
At least if the competition were “out there” in the market, you could justify your numbers. But your competition isn’t external; it’s internal. The question then remains: What are you going to do today to crush that competition?