One of our forum members, Snowstar, asked a question on how to find properties under fair market price. Charles, another member, had a good response, which I wanted to share with everyone:
You won’t be fast enough to find and buy real estate “under the fair market price”. If such a property is advertised, the hawks would be there immediately!
When you stop looking for that advertised under market value, you’ll feel much better about this exciting, fun and potentially profitable game of real estate.
It takes skills to negotiate a price that is acceptable. The buyer makes the deal, not the seller. The seller starts at a wish price that is too high. Skills in managing the due diligence process is necessary to obtain information to negotiate a price that works.
Making “Trial Offers” is helpful in testing seller’s motivations. Finding the good deal is difficult, but making good deals is done on purpose. There is a system and a formula to follow.
Practice contract construction, writing sample offers on properties and studying clauses to control, delay, and assign.
This focus on negotiation is something most people tend to overlook. Many investors think the hard part is finding the right property. In fact, I believe the most difficult, yet exciting part is the negotiation. We’ll get into that soon. Stay tuned…..