I like Al's post saying acquire "under valued" properties instead of saying buy "under market" and adding value then setting a price that moves the property in your current market. That is exactly how you do it!
If you're adding value, that makes flipping a solid business in any market in any economic condition.
IMO, no large corporate firm or foreign investor can compete with me. They have money, but money alone doesn't make a deal successful, especially in residential, in commercial aspects they will have more options, but not really in residential.
They have no boots on the ground! They hire the expertise needed. Who do they hire? Usually brokers or agents, in large operations these RE types become employees or, they agree to rock bottom commissions. Are they getting the cream of the crop to work for them? I doubt it, they are usually survivors in real estate, deal to deal, check to check types (which is okay) but they aren't the sharpest tool in the box or the top agents in your area, those agents would be losing money. So, who are you really competing against? The same folks that were there last month, the only difference now is they have a client that has capital.
Did your inventory change? No. Homes are always coming on the market, there is always a turn over of inventory regardless of economic times or who is playing.
If you're trying to live off internet listings, the MLS or auctions, now you're competing head to head with bigger pockets (pun used). Why do that?
Deals are found and then made. My boots are on the ground. Very few people know my area as well as I do (I grew up here) heck, I know where all kinds of things are that folks that have lived here for 20 years have no clue about. Someone very famous told you to grow where you are planted. Know your market, physically and financially.
If I see a for sale sign in a yard and the owner is mowing his yard, with my skills I'll be talking to the guy and most likely I can lead him into talking about the house, usually they show it to me. I agree quickly to work with the agent, he hired him for a reason, could be his brother in law, so there is no need trying to cut them out.
I'm not a licensee any more, if he has a pending contract, that's not my matter, he can still think on it and accept my offer.
Oh, some investing corporation wants the place! Do you like your neighbors, this area and neighborhood? Have you ever seen what happens when a corporate leasing outfit gets a foothold in a nice neighborhood? Your neighbors may not be real happy. When neighbors aren't happy they may not welcome that tenant, the tenant realizes the social aspect and they become unhappy. Vacancies increase, properties are repaired for the corporate bottom line without regard for the social aspects. Others move out and pride of ownership falls.
When I buy, or the better investors I deal with buys locally, we have a different approach. If there is an issue I'm on it, my interest is in protecting the property as well as the neighborhood because that means better appreciation for me. Keeping my neighbors happy protects my investment.
Flexibility that corporates don't have: I see they offered you $5,000 less than your asking price. That really is too much to pay and operate in keeping the property in good repair like I would have to. I can offer you $8,000 less initially, but I can set this up with a deed restriction on my part that requires me to sell the property in 5 years and from that, I will agree to give you $5,000 over your asking price today when the property sells in 5 years. You'd have to triple your money on that $5,000 you're losing on their offer to match mine in five years! I'll keep the income on the property over a 5 year period and split those profits with you and we can save the property from possible disrepair as well as values in the neighborhood. And the owner says "can you really do that?" and then I'd say "absolutely, I've partnered many times before with owners!" Shake hand and fill out your contract and have him reject the corporate deal, then call the listing agent and hand him the contract. (doesn't always happen that way when dealing direct, you may have the listing agent meet at the kitchen table. The agent will get 3% on the corporate deal most likely, they get 6% of the new deal, but nothing on the back end.......ways to make them happy in the future too.)
That is not magic, just a creative use of the fundamentals of real estate. Restrictive deed covenants!
So, should you give up any walk away from deals where the big boys are playing? Not at all, you can beat them, you deal may not be what you might have made without them being in your market, but that doesn't mean you can't pull a good deal competing with them.
Investors can operate like a Special Forces operator in the battle, they can have greater knowledge of the battlefield, be able to move quickly, operate silently, change tactics quickly, adapt to conditions and strike, while the big boys move in mass, like an invading army, bringing nothing to the community but pillage and plunder. LOL :)