How to Negotiate and Make Offers | Top Negotiation Tips that Close More Deals

Описание: #Negotiating #MakingOffers #TopNegotiatingTips
Mondays with Daniel - Daniel Moore, Ryan Harper

Daniel reveals the top negotiating strategies and how to employ them to close more deals. Investors may know the numbers and be excellent negotiators, but lack the skills to make the offer. Daniel outlines how to overcome this roadblock through clear action steps.

SHOW RUNDOWN
1:15 – MAKE AN OFFER
2:20 – IF YOU MAKE AN OFFER AND THEY ACCEPT RIGHT AWAY, YOUR OFFER IS TOO HIGH
3:10 – INVESTORS NEED TO BE GOOD AT NUMBERS AND NEGOTIATING
6:08 – THE QUICKER YOU GET USED TO NO, THE QUICKER YOU WILL BE ABLE TO OVERCOME IT
9:50 – DON’T MAKE THE OFFER OVER THE PHONE
13:20 – THE FIRST PERSON TO SPEAK LOSES
20:31 – IMPORTANCE OF THE SELLER NET SHEET
25:41 – PUSH BACK ON THE REBUTTALS
29:38 – BEFORE YOU BRING OUT THE PURCHASE AGREEMENT, REVIEW THE FACTS
31:40 – GIVE THE SELLER MULTIPLE OPTIONS.
35:00 – THE MULTIPLE OFFERS STRATEGY
38:09 – THE CASH OFFER
39:41 – THE SHORT-TERM FINANCING OFFER ALLOWS MULTIPLE EXIT STRATEGIES
40:30 – MULTIPLE EXIT STRATEGIES
41:43 – THE LONG-TERM FINANCING OFFER

Investors will walk through the property, estimate repairs, have an offer idea, but not make an offer because they think the offer will be too low and offend the homeowner.
Some new investors are good at either negotiating with the seller or coming up with the accurate numbers, but may not be good at both, which impedes getting a deal.
The quicker you get comfortable with no, the quicker you will be able to overcome it.
Fear of rejection can prevent investors from making an offer. To overcome this fear, call FSBO (For Sale by Owner) on Craig’s List and offer half of the asking price. The seller may get angry, will likely say no, they may curse you out. Once you get over that fear, you will be able to make offers with no problem. Best case scenario, the seller accepts your offer.
Give the seller multiple options.
If you only offer one option, they could just answer no. Be confident and know what you are talking about. You can use wording such as “We have multiple ways we can structure this.”
The multiple offers strategy.
This is a very specific strategy that employs a cash offer, short term financing option and a long-term financing option. The Basics: The seller wants: $90,000. Your legitimate offer: $60,000.
Do not issue your legitimate offer as the cash offer. The cash offer (initial offer) should be 10-20% less than your legitimate offer. Issue the $60,000 offer in a short-term financing option.

The cash offer is sticker shock.
Do not offer your legitimate price with the cash offer. Offer 10-20% lower. In this case, offer $50,000 cash. The seller will have sticker shock and may try to get out of the conversation, stating they need to speak to their spouse, etc. or they may try to shut down the conversation. Do not let them shut down the conversation. They may issue rebuttals, which is opportunity to learn more about what they want. Address all their concerns or questions. If they are not going to accept this offer, move on to the short-term financing offer.
The short-term financing offer allows multiple exit strategies.
I can get closer to $60,000 if you give me 6-9 months to pay this off, and if you can give me 6-9 months to pay this off, I can probably get another $10K in your pocket. Getting the seller to finance the property eliminates the acquisition costs typically involved with private money or hard money.
Three potential exit strategies with the short-term option.
Rehab and sell it using the seller’s cash as financing. You don’t have to pay the acquisition costs.
Rehab do a cash out refinance, put it in your rental portfolio and use the seller’s underlying lien to finance the project.
Purchase it from the seller, put it directly on the MLS.
The long-term financing offer is an option.
Use an amortization schedule (10B2 calculator) to the value of a 30-year loan would be and offer to pay that over 360 payments.


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