How To Negotiate A Contract?
I am a new investor. I've started this business part time last week. But how do you really negotiate a price for a property or a contract with a seller?
I am a new investor. I've started this business part time last week. But how do you really negotiate a price for a property or a contract with a seller?
Juanky,
Hello, Welcome to TCI.
It sounds like you may be pretty new here.
There are a million answers to your question, many of which can be found already here at TCI.
I would suggest pullin out that ol' library card and puttin in to use. There are a ton of books on the subject, It all depends on what area you are interested in.
Its a good place to start and its free. Try a web search, or even pick up a course or two here at TCI. All the best!
Brandon
I gotta agree...
Go through the posts, search the posts and you will find tons of answer.
Basically you are going to weigh out tons of calculations...motivation of sellers, areas, repairs needed, situation they are in, etc. You will do ten or more things just to arrive at that one answer, but it will be worth it.
I can help if you need it, just email or PM me.
The Solutions Kid
[addsig]
Thank you guys. I have all the resources plus a Charlton Sheets course at home but I don't want to get hung up in over analyzing the properties. I haven't bought my first property and i believe is because I'm over analyzing. Any suggestions??
Greetings,
My only recommendation to you or anyone else just starting out is to talk directly to sellers. Don't analyze a property UNTIL you are dealing with a motivated seller! If you must use an agent then get them to find properties that have comments like "moving, need to sell quick!" or "REDUCED for quick sell" or listings that say the seller will give cash back. Personally, I don't use agents because I can use this fact to lower my price when negotiating. This just put an extra $15k in my pocket today. Yes, my friends, I just signed up my first deal 2 hours ago and with no money, not even $10, and boy was I nervous! I haven't stopped shaking yet! But, it feels good to know that I just helped out a couple who were in a REAL bad situation.
The ONE CRITICAL FACTOR IN NEGOTIATION is to BUILD RAPPORT with the SELLER. I spent two hours talking about cats, plants, kids, and mortgage loans. Ironically, this seller is a mortgage broker and his wife is a post woman. They were great folks, and I came in and helped them out. The best part about it was that their property isn't listed and so their was no competition; I was their only option.
iglooman
iglooman,
That's the key, to help them out of their bad situation.
By taking that attitude, the money will follow.
Good job
John (LV)
All of the above are great statements and good information. I would also recommend all of the above plus I would also reccomend John Lockes Course "Subject to, Thats What I Do" , it got me through my first deal, I had a lot of questions and was nervous the whole time but John got me through it all.
It's amazing the change in attitude after the first deal. It's a great feeling and a giant confidence builder.
Darwin NM