I’m on week three of my marathon training, but it might as well be week 123. I still think running is a terrible idea. Every time I see someone running now, I actually get angry and wonder why in the world are they doing it and I want to run them over (I guess it’s my inner O.J. coming out, however if someone does get run over, I will be the first one to search for the “real” killer.) Anyway, now that you know that deep down I have serial killer tendencies (and what entrepreneur doesn’t? We’re all crazy) let me give you some information that will fatten your bank account and make you filthy stinking rich…because I love the smell of capitalism in the morning!

When you are talking with a seller, whether it’s on the phone or in person, there is one single question which can make the difference between millionaire status and non-millionaire status (or as I like to say being a “player” or a “tire kicker”). Write these words down and send my royalty checks to 123 Main St… Alright, here is the question “Mr. Seller, what do you need?” Not, “Mr. Seller, how much are you asking for the house, or how much are you looking to get for the house or how much do you want for the house.” Everyone wants $50,000 in cash, but what do they need? Usually this question will quickly drop that $50,000 to a much lower number. So if it drops from $50,000 to $25,000, then ask why they need $25,000. They will usually tell me it’s for moving expenses or to rent an apartment, and together we realize they actually only need about $5,000 or so. The beauty of this question is that it helps sellers come back to reality and realize that they only need $5,000 to move to Florida to be with their grandkids or $5,000 to get an apartment in another state to be closer to their relatives.

When you are meeting with a seller in person, the best way to “show” the seller what they need is using the pen and pad approach. When the seller wants $50,000, take our your yellow legal pad and show them what they need…$1,500 for a moving truck, $2,000 for the first months rent and security deposit on a new apartment, $500 to pay off some utility bills, etc.

Make sure you remember to ask this every time you talk with a seller and when they tell you some ridiculous number, make sure you question them and ask why they need that much money. So, I thought I would end this week with a very important scientific discovery that was passed onto me by a friend: Scientists have discovered that there is one food that drastically reduces a woman’s sex drive…………………WEDDING CAKE!

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Tags: Buying real estate, negotiation, real estate investing, real estate investor

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?

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