Here are some helpful tips for all my real estate investors: “If you do…

Here are some helpful tips for all my real estate investors:

"If you're bidding for sellers, you're doing it wrong!

Do not make offers to sellers. Let the seller offer you the offer!

Despite the wisdom of all the other gurus out there, I do not offer sellers.

Why not?

Because it puts me in a weaker negotiating position.

Look, the only way you're going to get what you want in a deal is to politely and gently inform the seller that you're ready to get out of the deal if you don't get what you want.

So how do you get the seller to bid on you?

Ask them questions.

"Sir. Seller, if I paid you all the cash, I covered all the closing costs and was willing to close whenever you wanted, what was the least you could take for the property?"

Then always follow it with…

"Is this the best you can do ??"

"So you're telling me that if I do not pay you $ ____, you would rather not sell your house?"

Or if it's a familiar financing deal (my favorite), you continue:

"Okay Mr. Seller, what's the least you can take on the monthly payment?"

"(Wince literally) Is this the best you can do?"

"Okay I guess it will work, $ ____ until paid (note I just negotiated with 0% interest).

"Now Mr. Seller, we usually don't assume anything (shut up)."

"(If they sink) okay, so what's the least you can lower? So you say if I do not give you ___ dollars, you prefer not to sell your house?"

"Look sir, you notice I'm not charging you commissions, any commissions, I cover all closing costs, right? Well I make my money from the difference between what I can charge in advance from my buyer, and what I have to pay you. So How close to zero can you get? "(Shut up)

(If they go down, but not low enough…) "Well, you're going in the right direction." (Shut)

Do you accept that? You have to let them negotiate against themselves.

Whatever number you come up with, that should be their idea.

If you start throwing low-ball numbers, this is the fastest way to shape them and just spin with your wheels.

Now I will say, if this is a cash deal, and you've gone through everything above, and they just aren't going down enough, but you know they're motivated, you'll eventually have to say the number that works for you.

Many times sellers simply do not know how low they will be before a written cash offer is presented.

Only then do I ever "make an offer", but that is only after I have reached out to them to negotiate against themselves as much as possible.

Anyway, this is my soap for today. "

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