I got a few leads on a few possible rental properties and a flip.
I'm analyzing the rentals and they seem pretty good. Would definitely be BRRRR type properties. I don't have any rentals yet, how would I estimate the insurance? If I'm not in a position to BRRRR now, would other investors be interested if I wholesale this as long as the numbers work?
For the flip, I got some extensive information from my website form (thanks LeadPropeller). I got their ideal price and cash price. But both are higher than what I'd pay for a flip. What negotiation tactics or other tactics do you like to use? I'm repeatedly listening to show 260 to prep for my call with the lead tomorrow.
If you own your own home in the area (or know someone who does), the amount you're paying for homeowner's insurance is usually a reasonable estimate. If it still looks like a good deal, it's worth a call to your insurance agent. They can give you a quote, and even advise if any features of the property have a strong impact on the premium.
@Tito Huynh First off, way to go on setting up a lead propeller site and getting some leads! I have been thinking about either them or investor carrot for my own site. Would like to connect with you on that. Insurance will definitely depend on a few factors - property type/age and value of the home. I use the following calculation when running analyses for our investors =(Purchase Price*0.006)/12 This usually is close. Now, for the negotiation - have you heard of Chris Voss, Never split the difference? He's been on the BP podcast, I put some notes down below for you. Information is also key for negotiations, and I would be happy to chat with you!
Techniques/Items to consider
- Mirroring - simply repeating the last few important words your counterpart said
Mirroring is great when you are at a loss for words. No matter how blank your mind may feel, somewhere in the recesses of your memory you can pull out the last three words of what someone just said. It's great for helping you get on track.
As part of your preparation process, consider and write down a summary of the situation as you know it. Then consider the predictable positives and negatives your counterpart is likely to bring to the table. Whether these predictables are reasonable or not, isn’t relevant. Prepare 3-5 labels in advance to deal with them.
- It seems/sounds/looks like…
- It seems like you’ve put some thought into this…
- It seems that X is important to you
- Instead of what’s the chance, say I’m sure this is going to seem greedy…
- Seems like your powerless here…seems like there’s nothing I can say…seems like there’s nothing you can do
- It seems like you are frustrated/upset etc…
- You’re not going to like this, and I don’t blame you from walking away
- “This is going to sound harsh” is a great label to lead off with when you know your counterpart is going to have a negative reaction to what you are getting ready to say.
- Ask calibrated questions - What makes you ask? It seems ____ is important to you…
- How does this look to you?
- what about this works for you what about this doesn’t work for you?
- what about this is important to you? how can I make this better for us? how would you like me to proceed ?
- what is it that brought us into the situation? How can we solve this problem? What is the objective? What are we trying to accomplish here? How my supposed to do that?
- How will we know we’re on track?
- How will we address things if we find were off track?
- “What’s the biggest challenge you face?
- What are you up against here?
- What causes the most frequent breakdowns?”
- Getting to NO
“Is it ridiculous...?”
“Would it be horrible…?”
“Is it a bad idea...?”
“Have you given up on…?”
- Intentionally getting people to say no- move away from would you like to try this to are you against this-create no oriented questions not yes
- Instead of asking do you have a few minutes to talk, as Is now a bad time to talk?
- Mislabel one of the other parties emotions or desires “so it seems that you are really eager to leave your job” when you know they want to stay-this forces them to listen and tell you that’s not it, but this is.
- Triggering "That's right"
- Effective Pauses - silence is powerful.
- Minimal encouragers - yes, OK, Uh Huh, I see
- Mirroring - listen and repeat back what the other person has said
- Labeling - give the other persons feelings a name and identify with how they feel
- It/you seems/sounds/looks like
- Paraphrase - repeat back to them what they said in their own words
- Summarize- combination of rearticulating the meaning of what is said plus the acknowledgement of emotions underlying that meaning = paraphrasing+labeling
- Negotiation is about letting the other side get what you want
- Yes is nothing without how
- How am I supposed to do that?
- Give the other person the illusion of control
- How are we supposed to do that?
- People aren’t afraid to fail, they’re afraid to fail in a new way
- Never be mean to someone who can hurt you by doing nothing
@Logan Freeman Great tips!!!
@Tito Huynh Awesome to hear about the leads. We hardly ever consider what the seller is asking for. It's much more about what they owe and their motivation to sell. Ask Logan mentioned, it's about finding what really important to them. Many times, it's not really about the amount they are going to get. They have a situation they are facing that they want to be done with. It's more about finding out exactly what it is they want. Just making a point of being a good listener and asking open ended questions that gets them to open up about that will be incredibly beneficial.
Even just sitting down on the coach at their house and talking with them for 30 minutes will do more for you than fancy negotiations from someone that goes through the house fast and throws numbers at them right away.