Creating Wealth Through Real Estate

Part II of my Negotiations educational series here on BP Nation. Please provide any comments or questions you may have.

Negotiations are often all about compromises but should never be the goal itself. It is only a negotiating tool to use if and when you need to. When you are attempting to get something you need and the other party is not obliging, often you can turn to a compromise to get what you are looking for. In other words, give them something small to get something that is necessary or important to you. You should also find commonality with those you negotiate with. As stated in part I, if the other party tends to like you, you will be a more successful negotiator.

 Mirroring and matching is also an important tool for usage in negotiations. This requires you to use the same words your opponent uses, the same rate of speed at which they speak, and the smae volume at which they speak. Match their body language and their gestures and always match the same eye contact they give you. This process does not mean that you are not being yourself as suggested you do when starting off negotiati9ons, but it is adjusting your physical gestures, approach, eye contact, etc. to match your opponents'. 

Here are some questions to ask yourself BEFORE you begin negotiations: What is my desired outcome? How do I stand to lose if I don't get the desired outcome? What is the other party's motivation? What is my walk away point? Are my expectations realistic for this situation? What support material can I gather and use? What list of alternatives or concessions am I willing to use? What compromises am I willing to give? Knowing the answers to these questions is imperative to better prepare you in advance for the negotiations.

In Part III, I will discuss negotiating tips, don't miss the next blog post!

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including REO rehab flips. For all short sale and REO investors, Will can provide your transactional funding needs. Contact him by email today for more details.

Negotiations has been brought up several times in forum threads and I felt it was important to blog about them so here it goes, Part I of several:

Treat negotiations as a game, remember, it is business, it is NOT personal! Never take negotiations personally. Allowing your emotions come into play during negotiations can give your opponent the edge they are looking for.

To be a great negotiator, you must be a great problem solver. Find out what your adversary's problems are and deliver solutions to those problems. You can not come into a negotiation stating "This is what I want!" You need to present in such a manner that by your opponent giving you something, it solves their problem.

Another important aspect of being a good negotiator is to start off by being yourself. Establish a rapport and utilize good people skills. These are essential elements to becoming a good negotiator. If your opponent likes you, you will have much more success in the negotiations. Coming across as arrogant or selfish will hinder your chances of a successful negotiation.

Always listen to what your opposing party wants. In many cases, their most important needs are mentioned right off the bat. Having this information and knowing what is most important to them will help you in your negotiations. Remember the 80/20 rule during negotiations. Listen 80% of the time and speak 20% of the time.

Part II of this series will include compromises, body language and gestures, stay tuned . . . .

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including REO rehab flips. Join his next "Make Me An Investor" program by going to www.nationwidepropertyinvestments.com/education and start your journey to creating wealth through real estate!

Negotiations, Part III

In the final post, Negotiations Part IV, I will discuss concessions. Stay tuned.

As promised, here is the second part of the negotiation technique. Questions to ask yourself BEFORE you begin negotiations:

Negotiations is a key element in real estate investing and one must become an expert in order to excel at buying properties at great discounts and with great terms. Just the same, one must have this gift to obtain the highest price and best terms when on the sell side as well.Becoming a great negotiator is not easy and takes practice, but educating yourself with the proper techniques can give you a leg up. Negotiations should be treated as a game! It is a business and should NEVER be taken personally. Keep ion mind that negotiations should be a win win scenario and the better you become at this, the more deals you will be able to conquer.As a negotiator, you must be a Problem Solver. Identify the problem of the seller or buyer, as the case may be, and then work on a plan to solve that problem. Starting off with, "This is what I want!" will not get the job done. You need to show that you can solve the problem at hand and by getting what you want, ultimately solves their problem. Always be yourself, stay true, and establish rapport. Utilize good people skills. Listen to what they want as they will mention their most important needs right up front.Negotiations are often all about compromise. Compromise should never be a goal itself, just a negotiating tool used ONLY if you need it. Find commonality. Others tend to like people who they are like. Also use a technique called Mirroring and Matching. This is accomplished by using the same words they use, the same tone they use, and at a similar rate of speaking. Always speak at the same volume they do and match their body language. Mirror their gestures, match the same eye contact they give you.In part two, I will discuss questions to ask yourself before beginning negotiations. It is imperative that you formulate answers to these questions to be prepared for the negotiations.William Barnard is managing partner of Nationwide Property Investments, LLC, a full time real estate investor, educator, speaker, weekly radio show host and mentor. He completes millions of dollars in real estate transactions each year and has been involved in nearly every aspect of real estate investing. Join his free investor list as well as the new paid membership area which provides education, training, and savings on a variety of products and services related to real estate investing at www.nationwidepropertyinvestments.com