I’m in sunny Florida for the next two weeks on business/pleasure (of course there is always business in there for the tax deductions from our favorite Uncle.)

As I was getting my rental car at the airport, the guy at the counter asked me if I wanted the ultimate coverage insurance or the collision only. What this guy did was use the “yes or yes technique” or the “yes or yes” close. It is one of the best sales techniques around and if you are not utilizing it you are probably losing thousands of dollars worth of deals every year.

When the rental car employee asked me which one I wanted, I had to think for a split second and realized that I didn’t want either of them. This is such a powerful technique because when people are given two choices they automatically think they have to choose one of them. Another example is an owner of a pool hall near my house who uses this technique brilliantly. Every time that I walk into the pool hall he asks me if I would like a beer or would I like an appetizer (I bet 90% of the people choose one or the other and that very few people say neither……….except me. I’m just there for the pool and to take other people’s money. See, I believe in the use of OPM in everything I do, not just in real estate.)

After I have evaluated a property and I know that there is a deal to be had, I ask the seller “Mr. Seller would you like to set up a visit for Tuesday at 7 or Wednesday at 6, which works best for you?”

One of the most important ways that I use the “yes or yes” technique is by presenting multiple offers to a seller. Never, ever, present just one offer to a seller. If you present only one offer to a seller, then it is very easy to say no and you will not close many deals this way. I always present a minimum of two offers and many times three offers. My two offers are going to be a cash offer and a subject-to/lease option (terms) type offer. Even if I know there is no way the seller will do a subject-to, I still present the offer (this is extremely important to remember.) Even if your seller said there is no way you can take over his payments, still give him two offers so that he can choose your cash offer.
So when I am meeting with a seller, I say “Mr. Seller would you like our cash offer of x amount of dollars, or would you like us to take over your payments and you will receive x amount of dollars at closing? Which works best for you?”

There are many more ways to use this technique, such as when setting a closing date: “Mr. Seller, do you want to close on September 22 or September 25”? Or when you are purchasing a real estate course: “Do you want to pay in full, or would you like the easy payment plan of only $19.95 a month for 120 months”?

Well, I am back to the 500 degree Florida heat, sweating to death. So the next time you are meeting with a seller, are you going to present two or three offers?

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Tags: closing deals, how to close, negotiation, real estate, real estate investing, real estate tips, real-estate-deals

I’ve got good news and I’ve got bad news. The good news is that food is the way to a seller’s heart and the bad news is that sex isn’t (sorry fellas).

One of the strategies that I always use when meeting with a seller is to bring them food. I usually end up bringing some type of pastry such as a pie or muffins. There are two very important reasons that I do this.

First, almost everyone loves food. It’s a very polite gesture to show up at a seller’s house with something to give to them. I am always harping about how you need to stand out and be different from your competition. How many other investors out there do you think bring a delicious apple pie to their seller’s house?

Not too long ago, I had a meeting with a seller about a lease option deal. I was running behind that day, so on my way to his house I quickly ran into the grocery store to get him something. I was in such a hurry that I grabbed the first thing I saw in the bakery section and it was some type of twisty looking pastry with a fancy sounding name (to this day I have no idea what in the heck I bought.) When I arrived at the seller’s house I handed him the pastry and told him “I thought you might enjoy these” (even though I didn’t know what these were). He took the pastry from me, we walked into his kitchen and I ended up doing the deal with him. Later that week, as we were going over some of the details, he commented to me how generous it was that I brought him the pastry and how good they tasted. Now of course that wasn’t that only reason I got the deal, but every little bit helps.

The second reason that you need to bring food to the seller is because it will lead you to the kitchen table. When you give someone a gift of food they almost always take it to the kitchen and put it on the counter or the kitchen table. This is exactly what you want to happen. You want to sign the paperwork (remember it’s always called paperwork, never a contract) for the deal at the kitchen table. For many families the kitchen table is a “happy place” where people sit, chat, relax and enjoy each others company–it is their comfort zone. You want the sellers to be relaxed and in a familiar setting when you sign the paperwork. It is also a much easier place to sign everything. If you have ever tried signing paperwork while leaning forward and writing on a coffee table it’s not a comfortable position whatsoever.

What do you do if the seller heads into the living room with your pastry or somewhere else besides the kitchen? You simply ask them to go to the kitchen. Say “Mr. Seller would you mind if we went to the kitchen table, that way I could easily lay out the paperwork for you, so I don’t forget to go over anything?” The majority of the time they will say yes.

Decide now, that you will not go on any more visits without bringing food. You want every advantage when trying to close a deal don’t you?

Tags: Buying real estate, closing deals, real estate investing, real estate investor, real-estate-deals