Quick negotiation tips

[Dylan Grieve]

Hi guys and gals of BP!

I might be closing on a wholesale deal tonight, and since there is alot riding on whether I can negotiate this successfully, I'm trying to prepare.

Here's the bullet points:

-She lives in another state

-sick of dumping money into the property (she rented it)

-wants to be rid of it before summer

-indicated in the first conversation that she'd take 60k (I want to get her down to 50k)

-80k ARV

-she owns the property free and clear

I have a buyer lined up, who has also been a mentor. He'd like to purchase it as a rental, and my compensation will depend on how far under 55k I can convince the seller to go.

This is my first negotiation, and I sense she's motivated. How likely could it be to get her down to 50k, given she stated in the first conversation that she'd let it go for 60k?

I was thinking of starting at 45k, then going to 48k if no bite, then 50k, very gradually.

Any thoughts/suggestions/quick tips?

Thanks,

Dylan

[Dylan Grieve]

@Christina R. - I was doing some last-minute research on negotiating, and a few that stuck out were: Be ready to walk away, and start reaaally low. I realized that 45k wasn't really that low, so I went for 40k instead. I would have gone a good deal lower if this was a rehab/flip, but it's a rehab/hold with minimal repairs needed, and the buyer would have paid up to 60k for it, so he made out good. It will cash flow very nicely.

Back and forth:

I spent a good 2 hours preparing, just writing out the bullet points, starting with additional questions for her, moving onto some of the new issues we found with the house, summarizing the repairs needed, then working into reminding her of the reasons she wants to sell. And at the end, veeery slowly working into the first offer; she said another investor offered more, and then I worked my way up on price. The whole thing probably took about 5 minutes, although I may have lost track of time. I was in the zone.