Verbal Judo and Negotiations in Real Estate Investing

[propertymanager]

Walking away - ok, I can remember just that one!

Mike

[hiscompany]

Wow!  I don't think I can remember all those negotiation tricks.  I guess I never realized how trough this real estate business was.  All this time, I thought all that was necessary was to find a DESPERATE seller and buy their property at a BIG discount. 

32. If they didn't or don't need the deal/transaction as much as or more than you do, why waste your time?--> I think that one's covered fairly well, but I for one appreciate your humor.

Fact of the matter is, one CAN profit in this business and know very little. Like you  said, sometimes it can be best (even in negotiations) to

43. Practice K.I.S.S.: Keep it Simple Stupid- Why Complicate Negotiations Unless You Must?

How about the KISS principle?

Mike

But that's hardly ALWAYS the case, even in the lesser-per-transaction niches of REI IMO

Good feedback.

[soholingo]

I used to sell cars and the rule was, make the offer and wait.  The next person that speaks loses.   And this does work, I have sat in an office for 5 minutes waiting for the person to speak, and they always do, except one.  They got up and left... I was floored!!!  I ran after them, got them back in the office.  And they did the same tactic again, this time I let them go.  BUT they came back later and eventually bought the car from me.

That rule is soooo true, after the offer is made the next person that speaks loses... 

[fdjake]

In my opinion the Car Business is the greatest Real Estate training school in the world. 

I (still) own, and at one time ran, a successful used car dealership.   I learned more in that business than in ANYTHING I have ever been involved with.  I had to FIND the cars, get the cars fixed and cleaned, advertise those cars, and close the sales. SOUND FAMILIAR?  It's the real estate business on a smaller scale.  I learned..... negotiations, how to EFFECTIVELY advertise and WHERE, how to build a team of people who can FIX things for you QUICKLY and inexpensively, and how to FIND cars people wanted to sell CHEAP and FAST!!!!!  But most importantly......

How vital it is to have a car (or house) READY to sell.  It's always AMAZED me how lazy people are.  I can't tell you how many times I had a really nice, Honda or Toyota that just needed CLEANING!!  I would offer to sell it for $500 under just so I didn't have to spend the time moving it to the detail shop.  ONLY one person ever took that deal.  I would offer someone the lower price, and the same nit wit who passed on it would come back the NEXT DAY and buy the SAME CAR (now clean) for $500 more and never even realize he was buying the car I offered to him the day before at $500 off.

It's the same game with houses.  I'm continually amazed at how just paint and carpet will move a home even if you've offered it to someone at a discount greater than the cost of those items.

"Never under estimate the laziness of people."