I got my a$$ kicked yesterday in Columbus, Ohio

[Chad B.]

Yesterday I was feeling as good as it gets after running the numbers on a SFH and proudly putting in an offer on a house at full asking price with conventional financing; pre-approval letter in hand and a nice letter from my family included with the offer. Money in the bag, know what I mean? Well, my eyes have been opened up to the hotness of the market in Columbus. My full asking price offer was basically pushed aside (maybe it came in too quickly to when the house went on the market?) and I heard nothing from the seller for the next 24 hours... even after my offer expired with no accept or decline. Finally, more than 24 hours after I submitted an offer I heard from my realtor that someone made a cash offer over asking on the house and would be closing quickly. So my friends, how does the little fish win in a market like this? What could I have done to convince a seller to wait on my 30ish day closing when someone else is a cash buyer? I want to become a big fish / cash buyer, how do you recommend overcoming those cash buyers when I don't yet have the funds to do that myself? To the likely BP member who gobbled up the house I was offering on, kudos to you my friend.

[Greg Scott]

When little fish swim with the sharks, the sharks usually win.   But, why are you swimming in the ocean when you can be in a nice freshwater pond?

In a hot market, the MLS becomes a feeding frenzy. Don't try to compete there. Go where there is no competition. Try to find off-market deals. Ask lots of friends and family if they have a property. Try walking a neighborhood and send postcards to the unkempt houses. Look in craigslist for the fixer uppers. Talk to wholesalers.

I'm not buying SF right now (I'm 100% MF) but I'm amazed I still get handed good SF deal opportunities simply because I talk real estate with everyone.