I consider myself a numbers person when I look at a deal.
Which in turn makes me seem not so warm.
I am trying approach a park owner about lowering his price and working on my negotiation skills.
Thanks in advance
Try to get them to talk some about their situation. Also try and steer the conversation towards how moving on will help them. I think the main things to focus on are listening and holding off a bit on getting to exchanging numbers.
I don't do warm and fuzzy very well either. The Carnegie book on how to make friends and influence people has great reviews, its a classic.
Check out what John Fedro has to offer. He does mobile home parks and homes.
As for numbers, especially on a deal that would be potentially a large deal I would suggest baby steps. I'm actually just starting conversation with a park owner a ways from me and my plan is to meet him, take him to lunch, have casual conversation, and the first meeting really not bring up much about the investments unless he drives it that direction. I'm treating my first meeting with him more as a fact finding mission because I know none of the numbers so far.
Facts to find include the numbers, but more importantly the reason for selling, the sellers story and back round, and the intended outcome from the sale of the park. Are they wanting to be done with the park and are willing to take a low cash offer to just get out? Or are they interested in owner financing where they will get monthly cash flow without the hassle of managing the park?
So, is this park listed on the market somewhere? Or is it off market currently? I'd love to hear how things keep going for you on this.
@John Van Uytven People loves stories and bored by facts (numbers). They have to sell it but you do not need to buy it. Here is great video by Oren Klaff (Pitch Anything author)
John, the Interest Based Negotiations model has worked exceptionally well for me in resolving contentious transactions and working with highly skeptical sellers. It's a conversational approach that illuminates what's truly important to the other party and allows you to innovate mutually agreeable options. But in order for the model to work properly, you must develop the skill of "hearing what the other party is saying" as opposed to simply listening to what they're saying. I highly recommend it. This link provides a concise overview: http://www.adr.af.mil/factsheets/factsheet.asp?id=7363
So I am a numbers guy as well. Here is what I do.
I ask if we can sit down and if the owner can give me some of the income and expense's so I can better understand the park. We both get pads of paper and we start with space rent... we work through all of the income and expenses. Then we talk about interest rates... then we talk about CAP rates. With a pad of paper, a simple calculator and a few hours of chatting the two of you have found a fair price.
You only need to agree on income, expenses, interest rates and that you must make some money for investing in the asset.
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