Deals are not found. Let me explain...

Ok I can hear you saying it now…but Frank, I found a great deal. Every now and then yes one is ‘found’. But unless it is the 2008 crash of real estate type scenario, most deals are ‘created’. Let me explain…

Most people whether the market is up, down or sideways are asking too much for the property. I have seen that to be true when the market was in the toilet up to the peak. That observation was very consistent and is still true today. People nearly always want the most they can get from their property. This is also why approximately 4% of the deals you come across will work if your goal is to wholesale.

However, if you have a skill called negotiation…everything can change. Through the skill of negotiation, you can learn what makes people ‘tick’. You can learn their motivations. You can learn the ‘why’ on why they are looking to sell. And it is through negotiation that most deals are ‘created’. I have literally seen tons of deals that on the surface were not deals become great deals. This does not happen by accident in most cases. It happens because you were able to dig deeper and find out the ‘why’ that was making a Seller tick in the first place. And when you find out the ‘why’ they want to sell, now you can create something that makes sense for both parties.

The same holds true if you are Selling. If you can find out why people are interested in a piece of property, you can find out how to put the deal together. Negotiation is arguably the biggest money making skill on the planet. Master it.

There is one thing to beware of however and that is tire kickers. They are everywhere. Far too many people get into real estate looking for a quick buck and will waste a lot of peoples time leaving a bad taste in a lot of people’s mouths. Not good. Yes things sometimes can go awry but a true pro will work through the challenges. Tire kickers run at the first hint of discomfort. Beware these people as many times they can be the reason why a Seller or Buyer is apprehensive to move forward on a deal. Be ready to overcome this objection.

So take another look at all those deal that cross your desk. With a little digging, you may find that there is opportunity right below your nose. You may just have to dig a little harder to see it. Happy investing!