Real Estate Investing is all about negotiation. Sometimes even the price we set upfront for a rehab flip deal can be part of our negotiation strategy. Think about that a bit…..
Or perhaps you are a real estate investor looking for a few wholesale deals and keep getting your low ball offers shot down. There is a negotiation tip for that: send your offers with a letter of intent that explain or justify your low offer. It may get a Seller to reconsider their asking price or bring them to the negotiation table. Listed below are 7 Keys – Negotiating Real Estate Investing Success.
7 Keys – Negotiating Real Estate Investing Success
Key #1 – Do your homework before you deal or make an offer on a potential real estate investment. Learn as much as you can about the property, neighborhood & seller/agent. Information trumps your gut everytime.
Key #2 – Always let the opposing Seller/Investor/Buyer talk first. Their first comments or offer could: surprise you, inform you and may be better than your expectations.
Key #3 – When you are the investor-seller set the scene. Tell the investing dream or home buying tale. Generate excitement for your property. Help the other side visualize the benefits, and they'll sell themselves.
Key #4 – Never accept any proposal immediately, no matter how good it sounds.
Key #5 – Real Estate deals can always be closed on – when all parties see their own benefit in making it.
Key #6 – Never be anxious or a “Yes” person. If you should not or can't say yes, it's NO. Just because a deal can be done, doesn't mean it should be done by YOU! Can't go broke or get in a pickle saying NO.
Key #7 – Just because it may look nonnegotiable, doesn't mean it is. A new contract, letter of intent, or addendum can always be drafted to include new terms or conditions.
In my experience as a real estate investor – I am constantly negotiating. Time, money, terms are always in play and as a Landlord I am often subtly even negotiating with tenants.
If you were to take way one thing from this post let it be this: EVERY THING & EVERYONE IS NEGOTIABLE.