After you have developed you ability to get qualified leads, you must learn how to negotiate with sellers to get deals done. When I started my real estate investing business, I was able to close one deal out of ten, now I close at least one out of three. Can you imagine the impact on my income this change has created? It’s the difference between making 12 deals per year or 36.
Let me make one thing very clear. This is NOT about throwing people out into the street! It’s not about stealing someone’s life savings. It’s really about helping people, and that is the attitude you must have if you are going be successful.
Remember that YOU did not put them in this position–it was circumstances or choices the sellers made that caused them to be in this predicament.
Help People and Make More Money
The success comes from having a higher purpose, and that’s how you should approach this business. Have the purpose of “serving.” That approach will reflect in your attitude, and as the result, you’ll be helping more people and consequently make more money!
So you should think win/win here, and understand what you want and what the seller wants when you sit down to negotiate a deal. After you have made a decision that this is a house you would like to acquire, you can just ask the seller “What is it you would like to have happen?”
If you know what they want to achieve, you have a better chance of making the deal. They may surprise you and want far less than you were prepared to offer!
Build Rapport with the Sellers
Building rapport is an overused term, however it is important because “people do business with people they like and trust.” So when you tour the house with the seller look for conversation starters, photographs on the wall, and compliment them on their home. If you dive right into business, it will negatively affect the outcome.
Finding something in common or other things to talk about first will “break the ice” and establish a level of trust and credibility that will help you accomplish your goals.
You can take classes and seminars to become a better negotiator, but if you have empathy, sympathy, and compassion you can do very well!
The Dirty Word… Real Estate Investor
I also never use the word “investor” when speaking with the seller. “Foreclosure investors” have been painted by the media as robber barons, who steal from people having financial difficulties, and that image may be in your sellers mind. In some cases, if you use the word “investor” to describe what you do, the negotiations are over and you get no deal.
Instead, I describe myself to them as a provider of housing solutions, and I recommend if your business has the word “investors” in the title, change it today! Who would you rather deal with, an investor or a provider of housing solutions?
Their House Is a Jem–to Them
I’m always amazed at the big billboards for a certain company, you know the name that shouts out in huge letters that they buy ugly houses. Who calls and says, “Hi, I live in an ugly house that I want to sell you.”
I suppose there is a market for this, truly run down vacant property, but that’s not what we are trying to do! The negotiation strategies are completely different, don’t get confused! The sellers you’ll be talking to think their house is a castle. Telling them they have an ugly house will surely get you shown the door.
The way to get better at all of this is to get in there and do it! Will you make some mistakes? Yes! And you will learn from them just like I did. But once you have a truly polished presentation, it will pay you back many times over.
Great negotiation skills will make the difference between being an average real estate investor and one who achieves real wealth in a relatively short period of time.
Now, what’s your next step? I’ll end it as always: Learn more and implement! Go ahead, browse the real estate investing How-to Articles and participate on the main real estate forum.