Negotiation has been used since the stone ages, ever since we first figured out how to form coherent words. We negotiate everyday without even realizing we are, we bargain with each other all the time in order to get things done and cooperate with each other. If you’re intimidated by talking and negotiating with a seller, you have to remember that they are a person just like you and you’ve been having similar conversations your whole life.
Think of a negotiation as two or more people trying to convince the other to give them whatever it is that they want. If you plan to be a successful real estate investor, being able to negotiate effectively is a must. You have to be able to talk to someone and get to know what they want, so you can offer them a solution that fits their needs.
Finding motivated sellers is your number one priority, which is why the ability to communicate is so important. You have to get to know someone and identify if they are the kind of person that is worth your time and effort, and that means building rapport. You only learn when you’re listening so ask questions, and not just about the deal. You should connect with them on a human level before you start talking numbers.
You will run into objections, but you have to understand that objections are not the end of the conversation. Too many people only know how to make one offer, but if you find out what they need you may be able to help provide that. Nobody likes rejection, but that’s what you are going to get when you are talking to people about buying their house. Overcoming objections by getting to the heart of the matter is crucial to your long term success.
Tyler Sheff guest hosts Larry Harbolt’s show this week to talk about how Larry’s teachings and information have impacted his life and his business. Tyler has sat across the table from Larry many times and has learned an incredible amount of valuable information over the course of the last few years and today he shares several key tips that will change the way you approach real estate investing.
Being face to face with people is probably one of the most powerful skills that Larry has taught Tyler. Understanding the personality type of the person you’re talking to is the best way to negotiate effectively. Electronics and fancy jewelry are just going to be distractions from creating the connection you need to create with someone.
Leave the Rolex behind and dress respectfully. You don’t want to spook the seller by dressing like a hotshot, but you also don’t want to look like an amateur by dressing like a beach bum. Always be polite and respectful of the seller’s property while you’re there. A lot of people have forgotten what it means to be polite and have good manners.
Understand that the kitchen table is where relationships happen and memories are made. The kitchen table is the ideal place to discuss the seller’s options and do business so always try to navigate the discussion to the kitchen. If that’s not an option, make sure that wherever you meet the seller feels comfortable. Most deals fall apart even before the negotiations can really happen because the other person isn’t comfortable in the situation.
Remember above all, that you can only buy a house that can pay for its own expenses. You don’t want to pay into your own investments, they are supposed to pay you. Just because you have the opportunity to buy a property, that doesn’t mean it’s the right property for you. Always do the math and make sure you tailor your offers to fix the seller’s problems. When the seller has choices, they feel like they’re in charge and that makes it easier for them to make a decision.
Once you understand why the seller is selling the house, you can solve that seller’s problem and provide a great deal that will put a smile on their face and ink on your contract.
A lot of people complain that they can’t find any deals, but all that really means is they just aren’t doing their homework. There are people who are buying plenty of properties because they’re putting in the effort. If you want to succeed in real estate, you have to be willing to do your due diligence and put in the work.
Every deal is different, and if you don’t know what your plan is for a property there is no way to know how to approach it. If you don’t run your numbers, how do you know your deal is a good one? Don’t forget to factor in your holding costs of a property into your buying decisions, otherwise you’re not going to make the profit you think you’re going to make.
Negotiating is one of the most powerful techniques you can master when it comes to your long term success in real estate. Just because a seller says no to your offer, that doesn’t mean that’s the end of the conversation. Nobody just wants cash, they want what the cash can do for them, and that’s what you have to find out during the negotiations to put together a great deal.
You can’t figure out what people want unless you ask questions. Learn what they are looking to achieve, what their goals are, and see if you can structure the deal so your goals and theirs are in line. Always ask. Take your time and don’t rush the process if you’re just starting out.
This business isn’t about getting rich quickly, it’s about doing the work, learning the ropes, and putting in the effort. If you want to learn what you need to get started now you can check out the courses on larryharbolt.com.
There are two things that you have to take into consideration when thinking about buying a property. You need to think about the income level of people in that area and the desirability of the property. Too many people only look at the price and that’s a big mistake.
You have to know what is desirable or you’re going to end up sitting on that property without being able to rent or sell it. The house should be affordable and desirable for people living in that area. You have to give people the properties they want and that may mean that the numbers are just not going to work out.
Little amenities will make a big difference. You can spend a little extra to make a little extra and increase the perceived quality of a property compared to others in the neighbourhood. If you’re going to rent the property out, make sure you use quality materials and spruce up the space so that your tenants will actually want to live there.
Too many people think they can clean up and repair a house in 30 days, but it’s probably not going to happen and that means their numbers are going to be all wrong. From the day you buy the property to the day you close it, every day costs you money in contractors and time.
Before you pull the trigger on a property, do your research and learn what the income levels are in the area and what kinds of properties people are looking for. This will greatly increase your odds of picking the right property instead of losing money on a property you can’t sell.
If you can’t seem to find any properties to buy, you have to stop looking where everybody else is looking. In today’s episode of the Real Deal Real Estate Show, Larry talks about where to find the best properties to buy and how to identify them.
Larry talks to people all the time that don’t even have the money to survive, that think they’re going to find a half million dollar property and that will solve all their problems. You have to cut your teeth with smaller properties first to establish the foundation that will get you started. Especially when it comes to contractors, experience is key. Without the experience to know what needs to be done you’re essentially giving the contractor free reign on what to charge.
There are hundreds of ways to make money on real estate, you have to use whatever you can to put a deal together. Every offer you make has four components parts and each one can be adjusted to make sure the deal makes sense for you and the seller. Being able to make your deals work is real power. If you want to change the way you make offers forever, check out the four day Never Step Into A Bank event to learn how.
There are only four kinds of single family houses: houses in foreclosure, houses you don’t want but could make money from, houses you can fix and sell, and long term income properties. Every house you look at will fall into one of those four types and if you can make offers on each type, you will make money.
If you want to make money from the properties around you, you have to realize that opportunities are everywhere if you know how to make the right offers on them.