How to create win win

Question

So I'm new to real estate investing and I sometimes find myself struggling with how finding a great deal can happen without someone being taken advantage of.  I don't want to make alot of money just because someone is having a bad day, or doesn't know the value of their property.  Anyone else wrestled with this?  How can your great deal be great for all parties?

Taylor Shields · Answer

@Isral Konopa

I love this question and I think it shows that you have tremendous character. I believe the essence of a successful negotiation is when everyone gets exactly what they want. A true win win.

You need to find out the true wants, desires, and needs of a seller. Be hyper aware of them and observe everything. This is done asking good questions and also hearing what's not being said. Most investors don't do this. Find out how many kids they have, where they want to go, what they would do with the money from the sale of the house, how much money they will need to do these things. Gather as much info about them as you possibly can.

It's almost never about money. Find a way to help them get what they truly desire and frame your offer within those desires.

There are some circumstances where they have just put themselves in a horrible situation and selling the house at an extreme discount is the only option. In those scenarios you shouldn't feel bad if you get a huge discount.

If someone is completely ignorant of value then the value of the home probably doesn't matter to them. Just find out what the desire is, what they need for that desire, then see if it works for you. That's a win win.

I am very transparent with people. I let them know that they may be able to sell the house for more using a realtor (if that is true). However, I also let them know the benefits of selling to me and how "I can tailor a custom transaction for you that makes you feel comfortable".

I spend about 90% of the time talking about and asking personal things non related to real estate. I let them guide the conversation and I take as many off ramps as possible. I spent over an hour and half with a seller on saturday talking about world travel and looking at all the things he has collected over the years. I know how many children he has, all of their names, His cats names, what he wants to do with the rest of his life, what he wants to do with the money from the sale of the house, He let me try on his bulletproof vest, let me hold a piece of the berlin wall and a coin he had from Nazi Germany, ect ect. Do you think that anyone else is going to do this with him? Probably not. It's very possible that he might get an offer higher than what I made him because of the desirable area the house is in. However, It's also possible that he will sell to me simply because he likes me better than everyone he has spoken to. By gathering all of these puzzle pieces together I can put a deal together that's custom to him.  Everyone is different and no one should be crammed into a cookie cutter type negotiation or deal structure, thats when people get ripped off.

Isral Konopa · Answer

@Taylor Shields

Hey Taylor,  wow what a great response.  You really summed it up perfectly, it's really about us seeing how we can help somebody get what they want and maybe through doing that, we also get what we want.   I feel so much better about my plan now.  I'm not necessarily looking for houses, I'm looking for people who could possibly use my help.

Isral Konopa · Answer

@Jonathan Makovsky

Thanks Jonathan,  I like the idea that I'm helping a person by being the solution to their problem.  That's how I need to see this whole thing, I think I'll be a lot more successful if I approach it from that standpoint.  Thanks again.

Jonathan Makovsky · Answer

@Isral Konopa  it's a great question!

There are many sellers the most money does not equate to the best situation.

As an example, if an owner is going to be foreclosed on shortly, the most money may not be as important to them as walking away without being foreclosed on, or even some money in their pockets.

Other sellers might have an estate in probate where some extra money may not be as important to them as getting cash quickly for whatever reasons they need it.

Some sellers might not want to have the stress of showing their property, cleaning it up, may have bad evictions that they don't want to deal with, managing a property from afar, and others just want the convenience that a creative investor can give them.

The most money is not always the best deal. If you can find sellers that need help and provide a solution you are not taking advantage but actually helping them out.