Smaller investor shops have to learn how to adapt when big investors move into their territory.
Industry experts weighed in on the subject at IMN’s Single Family Aggregation: The REO-to-Rental Forum in Boca Raton, Fla. Wednesday. Panelists at one session explained that big investors coming into a market is a positive sign of good deals.
Alex Sifakis, president of JWB Real Estate Capital, said smaller investors have two options when the big companies come into town.
“You are can either join them, which can be a good idea, or you can be where they are not,” Sifakis said.
In order to survive, investors need to be where others are not. “Buy the B- to C-level properties since they are the properties they don’t want,” Sifakis continued.
Victor Naar, CEO of CastleRock REO, added that smaller investors have to find what works for them. “For C-level properties, you really have to know what you are doing,” Naar said.
Sifakis said it is important to figure out where a smaller business fits with others in the overall market.
“As things progress, the opportunities change. You need to figure out the best places to put your resources,” he noted.
In the end, panelists emphasized that if smaller investors want to work in real estate, adapting is crucial. There are still plenty of REOs out there.