Posted by D.Henderson on March 29, 1999 at 17:56:25:
The speakers at the convention taught me a valuable lesson, don’t take it personally. Before, I really wanted a certain piece of property.
Now it’s different. Made to offers on two houses yesterday, neither one was accepted. One has been on the market over a year. I know that what I offered was fair and good for me.
Thank you but no thank you.
If the money isn’t there I walk. More deals around the corner.
It’s a Business!
Get out there, and best of Investing!
D.Henderson-Texas
I have called on numerous rentals over the weekend and have 2 appts setup. I would appreciate some tips on negotiating price and rent.
Over the phone, the owners express interest in L/O but no price or rent payment is setup as of yet.
I am attempting to place myself in the seller’s shoes and
it would seem that, with respect to negotiation, I am at a disadvantage because, after all, I am the one expressing a desire to purchase(eventually) this guy’s property.
How do I negotiate a lower than FMV price and FMR (Fair Market Rent)??
Posted by Dirk Roach on April 01, 1999 at 03:59:37:
Hi Sheik,
you know I spend more on negotiating stuff than I do on RE stuff. However I’m not complaining. It became very evident to me early in the game that there are two basic things in this game. Buying and selling. So I am constantly barraging my brain with techniques etc. to meet those two things. In fact I approach it as someone might approach bodybuilding. I work my negotating and selling muscles as much and as often as I can.
After reading your post and the current responses I am very happy that you have friends here to constructively criticize you a little. Listen to them they are on target.
In obtaining a potential Investment (whether it be RE, stocks, coins, stamps, comic books or Barbie dolls) your number one tool, your H-bomb, is walk away power.
Sounds so simple but can be hard to use when we’re starting out. Sure we all have fallen in love with a potential deal. Sure we have all seen what no one else has saw in a deal. Problem is sometimes it’s not a deal, it’s not in our best interest to proceed. Once you realize that there is a world of deals out there this becomes easier. This it seems comes with experience though.
Walk-away power is the key though, at least in my observations and experience.
Good luck hope this helps.
Dirk
You have to make money. 100/mo or more. You have to have a profit at the end. You will not put your money into it. If these things can not be met you do not have a deal.
“it would seem that, with respect to negotiation, I am at a disadvantage because, after all, I am the one expressing a desire to purchase(eventually) this guy’s property.”
You already have the wrong mindset going into this. YOU have the advantage because (if you’re looking for your sellers correctly) this guy NEEDS to sell/rent/lease … whatever. He needs YOU to solve HIS problem. YOU can always walk away, HE can’t just walk away from his problems. Like Scott Britton said in Dallas … negotiating is EASY when you’re in front of the right seller.
