One of the critical points in real estate investing success is negotiating the best deals. If you don’t know how to negotiate, you won’t be able to buy income properties where you have to talk to sellers.
There are strategies and techniques for negotiating.
- Before talking to a seller face to face, do your homework and make sure you have as much information as you can.
- Take your time. Don’t look like you’re in a hurry. It will turn the seller off if you’re trying to rush through the deal.
- Look around their home to find things you can ask about or connect with the seller about.
- Always remember that the seller must like what you’re offering more than what they believe they’re giving up.
- Cash is only one form of catalyst. You can offer to pay monthly payments or pay off some of their other debts.
- Don’t try to baffle the seller with your intelligence.
- Try not to end the deal at their home because they will be thinking about the emotional connection.
- Think of things you can do, like making repairs on the property, to buy some of their equity.
- You can only make a great deal if the seller is highly motivated.
When you’re ready to make an offer, you must consider how you’re going to finance it – seller financing or a bank loan. Seller financing is definitely a better option since you can come out with more profit that way. If you can’t work that out, try to agree to a sublease so you can control the property even if you don’t own it.
Be sure to visit www.larryharbolt.com and sign up for my Never Step Into a Bank again four-day boot camp. Once you attend, you can come over and over again for free.