The current commercial real estate market favors buyers. With a growing pool of people looking for single and multifamily rentals, now is an ideal time to purchase and renovate properties to boost revenue streams. That said, property investors are very competitive right now, and a property in a good location that has a good structure can often bring in multiple offers. Fortunately, there is a way to get around potential bidding wars and get the investment property you want.

Stick to Your Budget

Your budget is the most important part of your commercial real estate investment strategy, and should cover everything from earnest money to fixtures, materials, permits, and more. A budgetary increase in one area means less money for other aspects to get a property ready for tenants. Nothing eats into a budget more than a bidding war. If multiple offers are on the table, and the one you are contemplating will max out or exceed your budget, the best thing to do is walk away.

No Property Is Perfect

Bidding wars are founded on pride and emotional investment instead of fiscally rational thought. Yes, most properties can generate revenue, and some are better positioned to do that than others, but there is no such thing as a “perfect” property. If you find yourself being drawn into a bidding war, look at the comps in the area, or take a drive around the neighborhood. There is no shortage of properties with revenue potential, and the truth is that every single one – including that one property everyone is bidding on – needs some rehab work.

Cash Talks Loudest

If you are still set on getting on that ideal property, a cash offer will get the attention of any seller, no matter how many bids or promises other investors make. Cash talks loudest, and allows you to get a jump start on your plans, so you can start generating revenue from your investment property as soon as possible.