Real Estate Buying Tips Part 6

The longer you can spend talking with the seller of the property about why he or she wants to sell, needs to sell, wants to sell and needs to sell to you, the more likely you are to get a great deal.


In real estate investing when negotiating with sellers, establishing rapport, building motivation, and maintaining reluctant positioning is what closes the deal.

If you don’t think the seller did a good job negotiating then please don’t say that he did. If that is the case, l then just skip that part and move to injecting a little bit of doubt or hesitation into the deal.



Let the seller sell both him and you on the merits of the deal. Say something like, ‘Mr. Seller, while Nancy is out checking to see if she has a blank agreement to use, tell me again-scrunchy face, voice getting softer and lower-‘why was this deal such a good fit for you?’ The seller will give you the benefits he gets. Listen to him and use selective hearing to get him to repeat himself here to reinforce the benefits he is selling himself on. ‘I’m sorry Mr. Seller, you said that our making the payments would allow what?’ You could even ask the seller a question like this one, ‘Mr. Seller, if you were me, tell me again why would you think that this deal works me?’ Or, ‘Mr. Seller, if you w3re me why would you feel this deal is even good enough that you would want this property over any of the other houses you had considered buying this week?’ These last two questions subtly inject a lot of fear of loss into the negotiation and are like a tonic to close the deal.

The most important shift for you to make right now in your investing is to let go of the need to be perceived as professional and expert.

In the real world of real estate investing, when you are meeting directly with the owner of the property, you need to help them feel smarter than you and to help them feel like they are in control of the conversation.

Motivated sellers just want two things. They want to have a specific real estate problem handled as quickly and painlessly as possible. And motivated sellers want to feel safe and secure with choice they made of working with you, the investor.

??? Since he was taking title subject to that loan, he wouldn’t have any loan costs or personal liability on the loan.

Four choices for an exit:

1 Flip the deal to another investor

2 Sell the property to a retail buyer (this is the typical buyer of a home)

3 You could get a hard money loan for the purchase price and close on the two houses

4 You could bring in a money partner to fund the deal and split the profits 50-50

Any contract is fully assignable unless something in the contract expressly prohibits it from being assigned

Most tenant buyers will choose not to buy

This means we get the property back at the end and rarely had to do any real maintenance or fix up to the place during that time.

The tenant buyer treats the house much better than the average renter and typically is much better about paying their monthly rent on time. On average, you’ll find one out of four tenant buyers buying, with three out of four choosing not to exercise their option to buy.

??? Non-recourse Financing (e.g. seller carries back a $100,000 mortgage with no personal guarantee of repayment)???

For every $1 of his cash he is willing to put in a deal, he wants $4 of immediate equity.