Are You A Deal Maker?

Are you a Deal Maker?

Or are you working toward being a deal maker?

Being Successful in Real Estate is all about the Deal. Even in uncertain economic times several of us have hit the ground running and are changing the way deals get done.

What is the art of deal making? There is no real mystery or magic to it. People sometimes think there’s something conniving about deal-making – that it has to do with smooth-talking or outwitting the people on the other side. But it’s not about gamesmanship. It’s about knowing your market and your buyer’s needs so you can structure a strategy that delivers.

With uncertainty in market… today the need for astute deal-making may be more important than ever. But even if you couldn’t smooth-talk your way into a church bingo game, there’s still hope for you yet.

Here are 21 ways you can too close big deals:

Listening to Learn:

1. Deal-making isn’t about smooth-talking or fast talking. It’s about listening. Always remember there is more to learn. Keep an open mind and you’ll learn a ton – especially on this site.

2. Keep your antennae up, gathering information constantly. The REI business is constantly changing, the markets, the regulatory laws, so keep up to date with your networking and team.

3. Since much of your information you need isn’t on the surface, get comfortable reading between the lines. Ask questions when necessary and throughout examples for feedback.

4. Listen purposefully, and then trust what your gut tells you. The more you do in the business the more you can trust yourself. However, never forget the Trust, but Verify Motto.

5. Be openly curious: Ask open-ended questions, adjust to new information, avoid snap judgments and question your every assumption. Utilize the Ask the Experts and check with others that invest near you. However, avoid Analysis Paralysis.

Thinking past the Handshake:

6. To broker sustainable deals, develop terms that honest and fair for all parties. Deals shouldn’t be just Win, Win, but Win, Win, Win…Make sure that everyone involved is going to benefit. I didn’t say everyone is going to kiss you or come out winners, but make sure it is the best case for all involved….unless it’s a big bank then who cares about them J

7. Remember: Deals are about negotiating , but they’re not about cheating. Play fair and be as transparent and possible.

8. Invest time upfront to determine your buyer’s criteria. This is huge. This can save you time and help make you money a lot faster. Don’t waste time looking for what might be a “good deal.” Know what a good deal is from the start.

9. In the heat of the moment, when emotion might otherwise could judgment, return to the objectives you’ve identified as important. You’ll never go wrong if you’re moving to your why!

Maintaining Perspective:

10. Acknowledge strong emotions if they crop up – but don’t let them drive decisions. It is okay to take a time out, give yourself a pep talk, then dive back in. If you need it, do it!

11. If negotiations turn ugly, take yourself mentally “to the balcony,” where you can look down on the problem. Same thing if you get that No that you’ll probably get several of. If the answer is No, that doesn’t mean the deal is done. Take break and come back to the deal a couple weeks later if it’s still available.

12. Tell yourself that you’re facing a problem, which differs from the people, to keep tensions in check. It is good to be empathetic. Being able to feel for others can help you connect and building rapport is a huge part of working with FSBO’s but don’t take their problems with you or make a deal into a not deal for you.

13. Need friends? Start networking here and at your local REI club. The goal for a successful REI club isn’t to make friends or to be liked it is to get a deal done! Remember your goal is still to be successful and not become someone’s best friend.

14. Don’t let people’s discomfort with assertiveness stand in the way of negotiating deal that serves your interests. Depending on people’s emotional state you can get called names, a jerk or people may act like you’re taking advantage. I tell people you have to do more…and frankly over time you will become numb to uncomfortable negotiating moments. If you’re doing it for the right reasons and trying to create winning deals for all involved then all you can do is offer to help and hope someone is open to it.

Calling for Backup:

15. Build confidence through good old-fashioned preparation. Get educated….learn as much as you can about Real Estate. This is so important, but do go as far as the Analysis Paralysis.

16. Understand that you’ll probably never have all the information you want or feel that you need. My favorite is my friend Tina told me she would call Realtors as soon as she knew everything about “talking to Realtors.” Eventually, she had to take action. She realized that the only way to truly learn about anything was to dive in and “Just Do It.” So instead of Live and Learn, do a little Learn, then Live!

17. When working in unfamiliar territory, assemble expert advisers who can share their knowledge and help you analyze the situation. Hello you’re on this site and that’s a great start. Now make sure you’re taking advantage of all the resources available to you. Finally, make sure you always have a Mentor. Have someone that you are looking up to and learning from at all times. You need to have someone that is going to help you move forward!

Setting the Tone:

18. Know the other side stands to gain from the deal. Once you understand that, negotiations are easy. A lot of this business is “Selling.” Like it or not we need to sell our offer to the Seller and the Deal to the Buyer or the bank that’s going to finance us. Or even the property manager to give us a better rate. Know what’s in it for them and sell from that angle. How are they going to benefit from the deal? Remember, we’re problem solvers. Show them how we’re solving a problem for them.

19. When a competitor stoops to a shady dealings, don’t join them. Maintain your principles and deals will follow. Now, I’m not above letting my REI circle know what a creep someone else is. If they took advantage of a situation in a poor way or treated someone unfairly, I feel that I need to protect others, but I won’t stoop to their level.

20. Always deliver what you promise. Your reputation precedes every deal. Be the better person! Once again if you’re working for your WHY and for the greater good you’ll never go wrong.

21. Don’t be caught without a bottle of bubbly on hand to celebrate. This is key to your continued success – Celebrate your successes along the way. Without celebrating each step forward you could lose the motivation to take the next one.