how to negotiate

19 Replies

i officially said that this whole negotiating thing wouldnt get to me and i'd be able to do it easily. but it seems like its getting to me cuz i dont know what to say.

i still have no idea what i am going to say and i feel like they are going to keep coming at me with terms and im gonna be like "uhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh what??"

i just dont know what i am supposed to say during the first phone call. am i supposed to set up a time and date to meet with them afterwards? how soon? i have a million questions

i feel like im just thinkin about this too much and acting like an idiot

how did you get by your first negotiation?

i dont even own a house so many "simple" terms i probably dont even know. like a holding cost

feel free to call me a mean version of a cat. maybe thatll help

i feel like im just thinkin about this too much

Exactly!!

You are buying a house, keep it as simple as you can. You will not learn until you start doing things. It's okay to make mistakes. I would rather make a mistake and learn from it and improve than not do anything because of fear of making mistake.

If you really don't know of something they ask you about, just tell them that you will have to discuss that with your partner and you will get back to them on that.

@Sharad M.

the thing i dont like is if im doing direct mail spending a few hundred a month, mistakes are crucial!

im a broke college dude money is rough for me lol

Completely understood. Almost everyone who starts out new has been in similar financial situation.

What are you really afraid of? Is there anything in particular?

@Sharad M.

no nothing in particular. i just dont know how much information i am supposed to have before my first phone call

and how much i am supposed to find out after the first phone call.

i know their name, and address, and they are all single family, absentee. i sent out direct mail.

do i set up a meeting with them during that phonecall?

if i set up a meeting, how soon after?

what else do i want to know before and after that first phone call?

and i dont know how to find ARV or comps in the NH area.

I do buy and hold investment, so these are the questions I ask or want to have information about. There are some other questions based on the seller's answers to some of my questions.

These are the questions I ask:

Property Street Address:

Property City and State:

Type of Property:

Asking Price:

Name of the contact person:

Contact information:

Is the property owned by bank or private party?

If private party, why is the owner looking to sell?

How long has the seller owned the place?

How long has the property been up for sale?

Is the property occupied?

If property is tenant occupied, rents:

Unit # 1

Unit # 2

Unit # 3

Unit # 4

Are there separate utilities for each unit?

Are there any repairs that need to be done?

If owned by private party-is the owner current with the payments on the
house?

If not, how much behind?

do i set up a meeting with them during that phonecall?

Yes, I would.

if i set up a meeting, how soon after?

ASAP

and i dont know how to find ARV or comps in the NH area.

Contact a RE agent and tell him what you are doing and ask him to help you with comps. In return offer to pass all retail leads his way.

If simple industry related terms are stumping you, I'd highly suggest you start with a principal of real estate course. Maybe your college offers one in the business department? If not, you can certainly buy a book on Amazon. Get the lino down and understand the basics. Then work on the tougher stuff.

As far as negotiation goes, think of it as nothing more than a conversation. You're not trying to outsmart the other person with your terminology. People don't want to feel stupid when talking to you. Ask questions. Listen to answer. That's why you have 2 ears and 1 mouth. Listen twice as much as you talk. If I called you up and said I am interested in selling you my house, what do you think you'd need to know?

It's not too bad. I've gotten past the phone interviews and one appt which I will be following up on to make an official offer. Be yourself be polite be honest ad say you can help them out of the situation. Key is to find out WHY they want to sell.
The question HOW SOON DO YOU WANT TO MOVE also helps in establishing level of motivation.
Will let you know how mine goes.

Don't stress it's not too bad. I'm generally shy and after a few calls, and a few rude people you get better. Brace yourself for the rude ones but don't take it personal. I've realized they are angry because other investors have also contacted them do be aware you have competition.

"and i dont know how to find ARV or comps in the NH area."

Derek, you asked in a previous thread how to run comps in NH, and we replied with several methods, maybe you missed the answers.

Here is the link to your previous question.

http://www.biggerpockets.com/forums/93/topics/127740-running-comps-in-nh

Account Closed

do i need to know a bunch of different strategies for wholesaling? when i listen to their problems i dont know exactly how im supposed to help them. i dont know which situations people might run into.

if someone is facing foreclosure how do i help them with that. buy it fast?

what other problems might someone face

@Account Closed

Don't bog yourself down with all these hypothetical situations. Your first goal question should be, how do I find motivated sellers. Once you find them and you find out what they're real situation is, then come back with that question. Once you're in that situation though, I'm almost positive you will find a solution, as that's how it just works.

My suggestion would be to just pick up the phone and start calling people on Craigslist, whether they are motivated or not. You'll get rejections and you'll feel stupid after a few calls, and if that stops you, then maybe wholesaling isn't for you. Bottom line is, there's no magic script anyone on here will be able to give you. It's all experience, and you'll get better over time.

As for tips on negotiating, there's a few good podcast out there. Just search the term "negotiating" and start listening.

George

Originally posted by @Account Closed :
@Aaron Mazzrillo

do i need to know a bunch of different strategies for wholesaling?

Nope. You just need to learn how to buy cheap. People have all kinds of problems, but I'm not here to take their place in the quicksand. I can only offer them my rope to grab onto and help pull them out of the quicksand. More often than not, their problems are not even related to real estate, but getting rid of the property is one less headache for them to deal with.

If you're just starting out, I'd avoid the foreclosure stuff until you learn your state laws and make sure you're operating by the book. You don't want to end up in prison.

Hi Derek!

Sean Terry (Flip2Freedom) has put up several webinars that are free and explain in detail how he approaches sellers under various circumstances. He provides word for word SCRIPTS, recommendations about when to make an appt to see the property and when not to, what to say to absentee owners, how to handle objections, everything. I'm new, but I thought his strategy made sense and was very easy to follow. I tried to find a link to his "scripts" webinar and can't find it. He is on Twitter @Sean Terry Flip2Freedom. He posts notices of his webinars on Twitter, and links to the free webcast. If you scroll thru his tweets, you might be able to find the link to the scripts replay. It's been at least a month ago. He will probably do it again, so follow him on Twitter or maybe you can find it on his website. The webinars are about an hour long, and they are interactive so you can ask questions. I see that other members like him, btw. Hope this helps.

Derek,

Thanks for the vote. This is the link for one of Sean Terry's wholesale webinars on talking to sellers. After you enter your first name and email address, it will take a little while to load. Hope it works for you. I'm about to listen to it again. (It's a replay so of course the chat box is closed.)

http://fb.me/6rs9sDXyR

Sounds simple, but after pleasantries, I usually start with:

"Do you have a home that you want to sell?"

if yes

"Address?" "What do you think it's worth in today's market?"

Sounds very easy, but if they say "no", then they're just not motivated, as simple as that. Trying to get a deal from a non-motivated seller is like trying to get blood from a stone.

Even if they are not motivated to sell at wholesale price, perhaps you can ask to put them in touch with a market expert (licensed) who will be glad to list at retail value. Throw a few of these kind of leads at a specific agent and you won't need to worry about where to pull comps from :)

Cheers,

D

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.