Get More Deals With This ONE Strategy
There’s really one strategy is one I use predominantly, okay. And it’s a strategy that every single person can use regardless of your salesmanship or not, whether you have a lot of history of being a good negotiator and good salesperson or not. This is the strategy that I use predominantly when speaking to a homeowner. And it’s this, I remove the fact that I’m the decision maker, I take it away completely. And I know for most of you guys, that sounds counterintuitive, yeah. But Justin, I built a business so I can make the decisions. And I want to be the man and I want to call the shots and I want to make the offer. But I want you to put yourself in their shoes. If you aren’t the man, if you can’t make the offer, or will man if that makes sense.
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They’re right. If you aren’t that person, then they really don’t know how to handle it right, because they’re not negotiating against you. They’re negotiating against someone they’ve never met or not on the phone with. So now they’re going to get numbers in the negotiation kind of start, but they realize they’re not talking to the person. Well, in that case, then you have someone that really is going to lob some numbers out there by hoping but you can then reframe the conversation to have bad guys, right, so then there’s the good cop, bad cop scenario that you are creating, because there’s someone else that’s going to be making the offer. Now, by the way, just so we’re clear, this can be used in every setting, in every scenario ever, when negotiating. So for example, if you and your friends are talking about going to dinner at a certain place, and you don’t really want to go there, you might say, Hey, let me check in with my wife to make sure that you know, she feels like Mexican food. And now you’re not the bad guy because you don’t want Mexican food, you’re actually kind of using someone else. So that’s a little sidebar there. So if you are someone who is negotiating directly with the seller, which I hope you are because that’s really the business, right, the business is wholesale your way to wealth, create the opportunities through wholesaling to start to build wealth. So hopefully you are buying direct from seller, and if that’s the case, here are the two people that are bad guys in my business. So I have strength when negotiating. I have strength, because listen, I think we could pay around that number, but I’m not certain. So let me get some clarity. I needed to speak to my contractor partner. Now. My contractor partner likes to spend my money. So he wants to make sure that we’re on budget because if I don’t give him a budget, then he’s gonna go crazy. So he needs to make sure he draws up a good remodel proposal based around everything that we know about the home. So then he can talk to my second business partner, which is my cash partner, a cash partner brings a cash so if you can imagine Imagine some geeky guy in the corner always looking at a calculator running numbers, that’s my cash partner. Now the two of them need to see eye to eye, Mr. Seller, for me to get an approval of giving you the offer. So while I think we’re probably close to your number, I’m not 100% Certain, so I’m going to have to talk to them first. Now, as I do that, if you could tell me anything that you’ve done with major repairs, have you replaced the roof? Have you read on the pool? Have you had to replace the AC anything that has a big $10,000 price point or more? Have you done any of that? No, I have it. Have you done any major remodel? Have you totally completely redone? The bathrooms totally, completely redone the kitchens? Anything major over a $10,000? But no, I have it? Well, Mr. Seller, knowing what I know, and I’ve bought a lot of properties in my time. And I specifically say I’ve bought nearly 2000 In my time. The number you want may not I might not be able to get there. And by the way, Mr. Seller, that’s okay. It’s actually okay, because I can’t buy everyone’s home, I just, I can’t do it. Right, I’m not the right fit, I can’t pay top dollar for everything. Obviously, Mr. Seller, I’m an investor. So if you start with my number, the number I’d give you is $1, I will give you $1 to buy your home. And the number if I start with your number that you’re going to give me is 10 million. So we need to find a way to come to a number that we both like, right. So I just don’t know if I can get to your number it seems based around the age of the home and the fact that you haven’t done any of these major, you know repairs and or you’ve not done a major remodel, I don’t know if I’m gonna be able to get there. And then I’d be quiet. So what did I do there? Well, I took myself out of the decision making process, I now put myself to be friend, the seller. Okay, now I can actually say, Mr. Seller, I really would love to buy the home. I ultimately I’m not the end decision maker here. What can we do here? Right? Like, I don’t think we can get to this number, let’s just use 100 grand, I don’t think we can get to $100,000. I mean, can we get closer to 90? Can we get like, I don’t know if that will work. But I can tell you, we bought a lot of homes and I need my contractor to see eye to eye with my money partner and make sure that we’re on budget. And then I allow them to overcome, like I allowed them to voice up whether they can move at all. Because I’m not the decision maker. And so I actually was training one of my acquisition guys this morning before I did this podcast, and this topic came up again. And so what I did is I said, Hey, I’m going to make the next call, right? I’m going to show you how I leverage this. So initially, it came from my students, but then this morning, I was talking with my Acquisition Specialist. And so I got on the phone with a guy out of South Carolina as a matter of fact, and essentially went exactly what I’m talking about, hey, his name’s Mike, Hey, Mike, I’m not certain I’m going to be the right buyer, I’m not certain I can get to your number. Um, my contractor, you know, he’s gonna want to do a full blown remodel and spend a bunch of money and that’s not always needed, right. And I can, I can make sure that that doesn’t necessarily have to happen, but I am going to likely put some money into this. And then I have my finance partner, my cash partners able to make me make the ability for me to close quick happen is a reality. So I need both those people to see eye to eye before I can actually really present an offer. So let me ask you, Mr. Seller, I don’t know if I’ll be able to get he kind of logged out there. 30 to $35,000 for this property, said I don’t know if I’m gonna be able to get there. I just don’t. Um, if you had to do some repairs and remodels to your home? What would you do? And how much would it be? Any he started listing it out, Oh, I’d probably take out the carpet here. There’s carpet on the stairs, which is weird. There’s carpet in the bedrooms, I probably just leave the hardwood flooring. And you know, I’d probably just go in and paint and maybe read counter, but you could just replace the cat I’d probably spend about $15,000 in in my head. I was thinking he was going to take about $15,000. Now I know that number. But he and I were either Now it doesn’t mean I said oh yeah, good 15,000. I said
all right, I don’t know if we’re gonna be able to get away with just doing that much I might have to try to talk my contracting partner into seeing the vision that you see. So after I’m able to give them the pictures, I’m gonna have to maybe kind of kind of make the argument that you’re making because if we do make that argument, I might be able to get pretty close to your number. I don’t know if I’m going to be able to get to that $35,000 number, right. But I think if I can paint the picture that you’re painting right now along with your pictures, I might be able to get pretty close to that sound pretty good. Then you says, yeah, so then it’s okay. Well, I’m going to go ahead and send the pictures that you’ve given me, I’m going to give it to him. I’m going to give you a call back because he and my cash partner have to discuss whether that’s a realistic number and on budget for the remodel. And if it is, then we’re probably going to get pretty close. But I still don’t think we can get that number. Now, let me ask you, Mike, I’m probably about a $5,000, more aggressive remodel, you’re at 15. I probably said it was closer to 25,000 in my head, like we meet somewhere like 26 grand, is that something that you might be able to do? His reply was, I could probably do that. I said, Mike, okay, that is very fair of you. I really appreciate it. Let me just see what my contractor says, because he’s gonna want to do $50,000. And we all know that’s not going to happen, right. So let me see what he says. Let me see how we present that to my cash partner. And I should have an offer to you today. Hopefully, something that’s going to make sense for you. Perfect. So I took someone that started the conversation 30 to 35,000, down to $26,000. Right there, because I wasn’t the decision maker, I had to bring it by my contractor, I had to bring it by my cash partner. And then I had to make sure they saw eye to eye so we can present a value. And then I leveraged Hey, you know, my gut feeling was probably closer to 20, you’re at 15. We’re not far off. But if we could get somewhere in the 26. I think that would make sense. And I think I’m probably pretty accurate here. And he said, Yeah, I probably could work with 26. Now, the reality is, that’s a good deal for us right at that price point. So I already know we’re gonna be able to make him an offer. But the key there is I took myself out of the decision making process and allowed my partners to be the bad guys. They’re the ones that’s gonna beat you up on price, not me. Let me defend you. Let me paint the picture of a $15,000 remodel budget, and see if we can get by with that. And then I can give you more money, how’s that sound? And that’s the number one strategy I use. Now, I do a lot of different strategies. But the number one I do is I take myself out of the decision making the offering position that is up to my contract or my cash partner. And if they see eye to eye, then I can present the offer that they came up with. Sound fair. Awesome. So there you have it. And hopefully you guys are doing a lot of marketing get in front of a lot of sellers. And this is a reality something you use tactically, whether you’re wholesaling or flipping or you’re buying rentals. Hopefully this helps you guys. And listen, if you have not yet subscribed to my YouTube channel, make sure you do it. Make sure you give me a bunch of likes on my videos. Make sure you comment and make sure you turn on your notifications. And if you’re on iTunes, make sure you give me a five star review. I appreciate it. I’ll see you guys on the next episode. Peace