Cody Sperber

Top Negotiating Tips When Learning How To Invest In Real Estate
by Cody Sperber

Negotiation Tips For Real Estate Investors

So a couple of weeks ago I was asked to share some of my top negotiating tips to help a new or experienced real estate investor buy or sell more properties. Before we dive into different negotiating techniques that teach you how to invest in real estate, I think it is important for you to realize a few things:

Building Rapport With Your Buyer Or Seller Is Key

This can be done through "Active Listening". Active listening is easy to do with a little practice. It works like this... Call your buyer or seller by name, repeat or paraphrase the last thing they just said to you, then end with a probing question. For example "So Bob what your telling me is your mother-in-law has Alzheimer's and is now living in a long-term care facility. I can completely understand why you wouldn't want to make the necessary repairs to sell through traditional channels...or wait 3-4 months before you get any money. Doesn't it just make so much more sense to get the cash you need right now and be able to focus on your family issues?

People Like To Do Business With Others They Know And Trust

If your seller is a fast talking, straight to the point type of guy (or gal), then you need to be like a chameleon and morph into a non-exaggerated form of that type of personality. If your buyer is a "good-ole boy" from Texas that likes to take things slow... well... I bet you can guess my suggestion!!!

Uncovering Your Sellers Hot Buttons Is Mandatory

In order to be a successful negotiator you have to over prepare yourself. You need to know as much as possible about the property (needed repairs), comps, sellers motivation, and sellers wants. This will help you position your offer, stage your demeanor, and ask strategic questions. The goal is to ask as many open ended "optimistic" questions as possible to get to know the situation. A great question to help open up the motivated seller and uncover their hot buttons is "So tell me (insert homeowners name), what's happening in your life to make you want to sell your property to me today?"

Negotiation Tips For Real Estate Investing

When Selling Wholesale Real Estate, Cash Buyers MUST Play By Your Rules

I know you have heard the phrase "cash is king". While this may be true when dealing with traditional buyers that pay retail (or close to it), this is not the case when buying deeply discounted wholesale real estate. Remember that there is no such thing as a really nice, wealthy wholesaler. It is perfectly okay to demand your wholesale buyers to use your paperwork, abide by your terms, and use your title company.

Selling Is The "Transfer Of Emotions"

Motivated sellers are typically not rational or making decisions based of logic. In many cases they are driven by emotions and get tunnel vision on their life's problems. Remember that "sympathy" means you feel like the other person feels. "Empathy" means that you understand "how" the other person feels, but you do not feel the same way! ALWAYS enter into each negotiation with a feeling of empathy as you are a SOLUTIONS driven investor and there to help solve their problems. A great way to "transfer emotions" is to tell relatable stories that help the seller visualize their lives down the road without their housing problems looming over their heads! Let me give you an example of a simple story that transfers emotion:

    • Cody: Mr. Homeowner, let me ask you a question. Do you want to sell your house, get the money you need to take care of your situation, and gain peace of mind? Mr. Homeowner: Of course. 
    • Cody: Imagine waking up one morning, having a good breakfast, and heading off to work. You get a phone call from your wife saying she just received a postcard in the mail from a guy that is offering to pay cash for your property. Skeptical you call and see what the "catch" is. After talking for a while you and the investor reach an agreement. You go home and tell your wife the good news. Within an hour you have a new email message with the attached agreement. You guys sign it and within days your home sells, and you receive all the cash you've been needing. How would that feel? Mr. Homeowner: That would be fantastic. 
    • Cody: Now picture the first full night sleep you have gotten in months. Imagine feeling that you made a good decision choosing to work with an investor that focuses on quick solutions to your situation. Because of your choices you can finally focus on the things in life that matter most!

Words That Sell

UNDERSTAND, PROVEN, HEALTH, EASY, GUARANTEE, MONEY, FUN, ADVANTAGE, SAFETY, SAVE, NEW, LOVE, DISCOVER, RIGHT, RESULTS, TRUTH, SECURITY, COMFORT, PROUD, PROFIT, DESERVE, HAPPY, TRUST, VALUE, VITAL, POSITIVE, YOU, BENEFITS, AGREEMENT

    • So for example you can say phrases like - "Take advantage of our offer and begin enjoying the benefits instantly. You deserve to be happy and I am positive you will be proud of your decision to do business with me today.

Words That Don't Sell

DEAL, COST, PAY, CONTRACT, SIGN, TRY, WORRY, LOSS, LOSE, HURT, BUY, DEATH, BAD, SELL, SOLD, PRICE, DECISION, HARD, DIFFICULT, FAIL, OBLIGATION, LIABLE, FAILURE

    • So for example do not call your paperwork a "contract". Instead call it an "agreement" and have the other party "o.k. the agreement" instead of "signing the contract".

Negotiation Best Words For Real Estate Investing

Objections Are A Good Thing

That means that your buyer or seller is interested in doing business with you, but are not convinced to choose working with you at that point in the process. When your prospect has no objections at all...that is when you should be worried! Always stay calm and stand your ground - In the beginning I am always a bit more aggressive just to prove I can hang, but I let up if the conversation gets ugly. Don't be afraid to fight your case with facts (comps, crime statistics etc.). One last thing - realize they are always testing you to see how you react.




Cody Sperber
As a veteran of the armed forces (NAVY), Cody learned that ethics, honor, and commitment can tell a lot about a person. After being released with an honorary discharge, he attended ASU, receiving a degree in Finance (Magna Cum Laude). Cody then received his real estate license 3 years after he first began investing in real estate because he was tired of working with horrible Realtors that were just trying to make a quick commission.

Cody began focusing on different strategies to help clients Avoid Foreclosure. Cody worked with underwater owners arranging short sales. This led to the development of his Reverse Short Sale Secret. Cody continues to buy and sell millions of dollars worth of real estate every year. In addition he has created a series of free real estate investor training tools for new investors.

Cody trains and mentors a handful of dedicated investors. When it comes to succeeding in real estate investing, Cody grows daily and helps others to do the same. Cody breaks the silence on methodologies that have launched successful real estate investing careers. He explains the top four ways to amass real wealth using real estate whether you are a new or a seasoned investor. His approach is sound and his presentation is clear and concise.

Cody Sperber is recognized as one of the young guns of real estate investing. He thrives on encouraging and educating fellow investors. Cody Sperber's philosophy is to give you all you need to be successful before he ever requires anything on your part more than the commitment to learn.


Copyright Notice
Copyright 2002-2017 All Rights Reserved. Published with Permission of Author. No part of this publication may be copied or reprinted
without the express written permission of the Author and/or REIClub.com.

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