"No effort is wasted, though some may pay dividends later than you think. There is no such thing as "waste" in the Universe. Everything - everything - yields benefit." - Neale Donald Walsch
Here's a quick case study from one of my recent student deals that can serve you greatly:
My student forwarded me a lead. I went over it and using my Max Offer Calculator, I replied with exactly what we should offer. She made the offer.
Seller flipped his lid.
The thing is, he really wanted $80k and not a penny less. We offered $60k. Which was our max, and we know it. But, my student is determined to get this deal. It's a sweet deal - really large CAP rate as well as rate of return perfect for a landlord. So, this is what I said:
"Hold your ground. Be firm. He's desperate. He'll come to you. Just be patient."
Next thing we know, the seller wants to negotiate. He went from "$80k and no less," to "let's sit down and talk and see if we can come to a compromise."
We held firm.
Within just a week, he wound up meeting our price. He went from feeling displeased by our offer, to feeling grateful we were in fact willing to buy it.
That's exactly what desperation does.
There are two lessons here:
One, only deal with sellers in distress. And two, if you know your price ceiling, remain firm. The seller will meet you there.
Study your sellers too. Observe their body language and their current situations. These facts will help you better deal with them and negotiate with them more effectively. Be sensitive about why they are selling their property. Build a rapport with them. Make them feel comfortable.
Now get out there and flip something!
Here's a quick case study from one of my recent student deals that can serve you greatly:
My student forwarded me a lead. I went over it and using my Max Offer Calculator, I replied with exactly what we should offer. She made the offer.
Seller flipped his lid.
The thing is, he really wanted $80k and not a penny less. We offered $60k. Which was our max, and we know it. But, my student is determined to get this deal. It's a sweet deal - really large CAP rate as well as rate of return perfect for a landlord. So, this is what I said:
"Hold your ground. Be firm. He's desperate. He'll come to you. Just be patient."
Next thing we know, the seller wants to negotiate. He went from "$80k and no less," to "let's sit down and talk and see if we can come to a compromise."
We held firm.
Within just a week, he wound up meeting our price. He went from feeling displeased by our offer, to feeling grateful we were in fact willing to buy it.
That's exactly what desperation does.
There are two lessons here:
One, only deal with sellers in distress. And two, if you know your price ceiling, remain firm. The seller will meet you there.
Study your sellers too. Observe their body language and their current situations. These facts will help you better deal with them and negotiate with them more effectively. Be sensitive about why they are selling their property. Build a rapport with them. Make them feel comfortable.
Now get out there and flip something!
About the Author:
Pave the way to real estate riches, learn about Flipping Houses, visit Andrew Maestro Massaro's Wholesale Coaching Inc.. Unique version for reprint here: Flipping Houses: Help Make The Seller Come To You!.
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