Real Estate Investors: This is how you compete with a Hedge Fund:First: Appreciate their strengths but don’t fear them.Hedge funds have a lot of capital and if they can show a model that produces a decent return of ONLY 7-9% they will get more capital to continue their acquisition spree. In addition, hedge funds can leverage technology to the hilt, so they will have more applications and databases than you can shake a stick at, but remember bad data fast is still bad data.Another reality of their size is their need to buy lots of property quickly. When they move in for the kill they will buy large pools of properties in short periods. However, as a small investor, I can focus on a single purchase to add to my portfolio instead of having to find 10, 20 or 50 properties to buy. I have no idea how these buyers can stay up to date with 50 escrows, repairs, and rentals, at one time. In the end – appreciate their need and ability for frequent acquisition.
via How to Beat Hedge Funds Buying Properties in Your Real Estate Market.
