"If it is not a deal, make it a deal" is a sentence that went through my mind during ...
"If it is not a deal, make it a deal"
It's a sentence that went through my mind during the process
I passed and still pass as a successful real estate entrepreneur.
In every deal I like very much, I sit and think,
How can you turn it into a deal,
Even if the seller wants a price that is unrealistic to me
I go into detail and it says:
Checking the area at the street level,
Checking what ADDED VALUE has on this street on others,
Examines the assets sold in the region during the past six months,
Checks what rent can be obtained on properties in the area
And whether it is possible to upgrade the renovation a bit,
In order to get a higher rent.
Checking the numbers - of course,
Inquire more details about the seller
And finally I check how I'm going to present my proposal
And how I sell the salesman my number.
"If it is not a deal, make it a deal"
That's the idea I'm moving on
The people I meet every day as part of the counseling I give them.
Before everyone jumps out of enthusiasm,
It is important for me to emphasize that not every deal
It's a good deal, but in most cases
You can make a good deal out of it.
It's all a matter of negotiation
And how you “sell the deal” to the seller.
In most cases, sellers throw away numbers
Or rather shooting high in order for them to
Get down just as we are,
Real estate investors lower them as low as possible.
Everyone has his number.
We all use one formula or another
For example, the MAO or Maximum Allowable Offer formula
(ARV * Investor Discount) - Est. Repairs = MAO
ARV = market value after renovation
Investors Discount = What capital gain we want
Or in other words our number
Est. Repairs = Estimation of renovation cost
MAO = our proposal - the number we need to sell to the seller.
We Israelis are most of us Geridians,
We will not settle for a deal
With a profit of $ 15,000 or $ 20,000 (value of homes that are between $ 100,000 - $$ 200,000)
And this is a big mistake friends!
Here you lose.
Why, because you miss an opportunity
Make a quick profit.
how?
If you checked the area a bit,
You would discover that it was the Americans
They take such deals happily.
They think differently.
They look at volume (number of transactions)
That is, on some such transactions
They can do a year.
Then you will transfer such a deal to them and you will earn the mediation
Or simply put the property in your property
Which you rent for you or for an investor.
But, if you're Gerard
And you have a deal that does not provide your number
You will find the way and make a deal.
That could be any deal.
Stop thinking if it does not meet your criteria
It does not meet the criteria of other entrepreneurs.
So i will end in…
If it is not a deal, make it a deal
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Roman Goldenberg