What I want for Christmas - Posted by The Baze

Posted by Chad Travis on December 18, 1999 at 14:04:47:


How do you make a “cash” offer on all FSBO offers? Do you also offer “cash” when working with a realtor?

I am just curious. I am SO eager to buy more properties, but I seem to have a problem doing it without a partner.


What I want for Christmas - Posted by The Baze

Posted by The Baze on December 16, 1999 at 20:31:35:

I’ve been nvolved in real estate since 1993, with some reasonable success. In that time, I’ve spent close to $10,000 on educational materials, much of it from this site. I know just about every no money down technique there is, how to put together lease options, wrap loans, subject to, how to buy mobile homes, how to use paper,and on and on.

But the one thing I, and many other people I’ve talked to need help w/ is negotiations, or how to talk to sellers. Now I know there is no magical script, or dialog that will get sellers to say “yes” everytime, but there has to be something that will take years off the learning curve. I don’t want to spend years learning as I go. Not that I’m lazy and against learning like that if there’s no other way, but I’m convinced that negotiating is a skill that can be learned from others who are good at it, just like other skills can be.

I’ve read books on the subject, including Herb Cohen’s “You Can Negotiate Anything,” and I’ve taken some home study courses. But none of them really deal w/ real estate.

What I want is for some of the gurus to put together a nuts and bolts course dealing exclusively w/ how to talk to that motivated seller to find out what he wants and how to get him to say yes to your offer. Not just the generic “find out what he wants and give it to him” stuff, or 100 ways to buy this house w/ no money,but real examples based on actual dealings w/ sellers. Don’t just tell me you got the deal of a lifetime by getting the seller to accept $5 down and payments of $100/mo for his $100,000 house (I know, but you get my point), tell me how you did it. What did you say to him, what did he want, how did you find out exactly what he wanted, how did you come to an agreement, and so on. I’d be willing to pay handsomely for that type of knowledge from someone like Jim Piper, Terry Vaughan, Ray Alcorn, Steve Cook and others who are enjoying success.

I know that Joe Kaiser has something like that in the works, and as soon as it is ready (tell me when, Joe) I’ll be the first to place my order. But, my personal opinion, I think that is the type of thing myself and other visitors to this site would really like to see more of. How about it guys?

Anyway, I hope everyone has a very Merry Christmas and a happy and prosperous new year.

Tom Bazley

Re: What I want for Christmas - Posted by Bud Branstetter

Posted by Bud Branstetter on December 17, 1999 at 21:59:01:

You could take any of the negotiating courses and still not be able to put it into practice. I went with a friend of mind this morning to negotiate a purchase. As we were discussing the lady asked if we were playing good cop/bad cop. Just because I was bringing out all the things that needed to be repaired did not mean that we did it on purpose. Much more natural. Which is the point I would make. Practice negotiating until it becomes natural. One way is to actually go do it. Great if you have the resources to actually purchase. A bummer if you can negotiate a good price and not be able to close it. Another way is to role play. Get yourself a friend that will act as a seller. For only $10 each scenario I will send the friend his circumstances and what he can do and what he can’t. You can then practice negotiating. I promise each scenario will be different. Not everytime will he be motivated to give you the deal that you need to make the profit you need.

We tried the split payment method of some now some after rehab and sale. We tried the what if you don’t sell. We were only able get a $2500 concession off the lowest amount they said they would take over the phone. Repairs will be required but an $85K house for $59.5 should leave room for some profit.

Re: What I want for Christmas - Posted by SCook85

Posted by SCook85 on December 17, 1999 at 18:09:57:

I’m honored that you mentioned my name with the others; but I must confess- I don’t do much negotiating. I’m not one of those who tries to make the most of every deal. I present the deal my way and the seller takes it or leaves it, that’s it.

When I deal with a FSBO I make them a cash offer and leave it at that. If they say they owe more then my offer I tell them there only option then is to give me the deed. My system has become easy for me, I just do it often. I recently did an analysis of how many offers I have to make to get one accepted. In the last 6 months I have bought 1 out of 7 homes that I have made offers on through my realtor. That is a pretty good ratio.

Using a realtor for 90% or more of my deals the negotiation is also taken out of my hands. I’m getting a reputation now with most of the realtors who handle REO’s and not much more needs to be said when they see it come in. They know the offer is good and that I will settle; I’ve seen the comments that they write to back that up, before presenting the offer to the bank.

A friend of mine had invested in a L/O course that he told me cost him $7k. He claimed that the course dealt more witht the mechanics of negotiating then the mechanics of the deal. It had more to do with psychology and what to say to sellers to bring them around to your way of thinking. His first deal after taking the course paid for the course. The seller gave him $6k to take over payments on the home (up front) and the tenant/buyer put $3k down. It was the best pretty home deal that I ever heard of. So I think the type of course you are looking for may be out there, but it would be nice to see someone from this site put one together.

Happy Investing.


Re: What I want for Christmas - Posted by phil fernandez

Posted by phil fernandez on December 16, 1999 at 21:10:19:

Geez Baze you’re all stressed out again.

I’m not one of the guys you mentioned in your post however I will try to address your question.

How do you get the seller to go along with your offer. Very simple. You build trust with that seller. You spend time with that seller. You ask that seller questions and then you shut your mouth and listen. Too many of us, me included like to shoot off our mouths and then not listen to what the seller is telling us.

I have never done a deal where I have NOT built up trust with my seller. It might take two hours it might take two months, but however long it takes you need to build that bond between you and the seller.

Once the seller trusts you, the rest is easy. Practice your people skills.