Last time I talked about when to walk away from a deal…
There are many more reasons to do so than I talked about, but the main element can be boiled down to one fundamental reason…
The lack of trust.
When you walk away from a deal, it’s because the seller has given you a good reason not to trust him…
Either by something the seller has said or done, or not said or done…
Or even just by your own “gut feeling.”
We all know those kinds of feelings that make us uncomfortable in going forward in a deal…
Now, I want you to turn that logic around the other way…
Because the same reasoning applies when you’re in a deal and you have the advantage over the seller…
You need to know how to walk into a deal.
Understand human emotion
It helps to understand that in many cases, selling a property is an emotional thing…
Those emotions may be positive toward the property or negative…
It doesn’t matter.
A seller who has owned a property a long time will often want to sell it to “the right buyer.”
Let that right buyer be you.
That means listening to what the seller has to say…
Which is an opportunity for you to deepen your relationship with the seller.
Just know that people don’t like to feel like they’re being taken advantage of…
Like they’re being hustled and fast-talked into a deal.
This is particularly true with older sellers or sellers in a difficult situation.
Don’t give the seller a reason to walk away!
When you are working with a seller in a deal, don’t give the seller a reason to walk away from you…
Rather, it’s much more advantageous to be the seller’s best friend in the deal.
Here’s what I mean…
When you find a property that you’re interested in either driving by or on the web, never assume that it is the only property the seller owns.
Now, there are ways to research just how many properties any given seller owns…
But that information may not be complete or accurate…
Especially if the seller holds property in various trusts or corporations.
In any case, as a buyer with a desperate seller, be careful to treat the seller with respect and try to be flexible with the seller’s needs if they are reasonable…
Often, a seller may request more time to settle because of other issues not directly related to the property itself…
This is where your flexibility and kindness can be to your advantage.
When you accommodate reasonable requests, the seller will appreciate it…
And most of all, the seller will appreciate you.
Building your reputation
This is where you build your reputation as a businessperson…
If at all possible, people will want to avoid doing business with a person that is unable or unwilling to bend a little or is unpleasant to work with.
This is especially the case with J.V. partners, real estate agents and other potential sellers.
For instance, say the seller in the deal is older and is selling you a duplex.
There may be other duplexes in his portfolio that he will want to sell as well.
Or, he may want a J.V. partner to help him with other purchases…
The selling estate agent involved (if there is one) is also an opportunity…
He or she will know of other properties coming on the market sooner or later…
He or she will be more likely to alert you to them if you treat the seller right.
But you will never know what the seller’s needs truly are until you establish a relationship built on trust and competence.
Let the seller get to know you
I find that the best way to do that is to be open with the other person…
Tell them what you’re looking for in a property, in a J.V. partner, what your portfolio goals are and all the rest…
Introduce them to your spouse, perhaps even your kids…
Let them get to know you a little bit.
When they do, they will quite likely feel a much more personal connection to you… at least as a real estate investor.
The more time you take to get to know the seller, and most importantly, to discover what the seller’s true needs are…
The more opportunities you uncover for yourself.
Even if your seller doesn’t own more properties, if he gets to know you and like you because you’re easy to work with and you follow through with what you promise…
The seller will be much more inclined to refer you other possible property sellers…
It just works out that way.
This is how you build your reputation in your community and among your business contacts, including realtors, lawyers and even council members.
Use honey, not vinegar
Try to avoid the “fight for what’s yours” mentality if at all possible…
Make it easy for the other side, whether it’s a seller or a local council, to say “yes.”
That means being pleasant, flexible, informed and perhaps even generous.
Believe me, it won’t go unnoticed among those you’re working with.
Every deal is a reflection of you as a real estate investor…
But also, and more importantly, as a person.
If you’re not sure where you fall in that category, simply ask yourself…
“Would you want to do business with you?”