What Every Birdog Must Do
Sit in with your investors negotiation.
I recently went to look at a property after having talked with the owner a few times. The numbers that I had worked out seemed to be close enough to be interesting and presented several options.
I set up an appointment with the owner originally alone. I then called the owner back and said that my partner would be in the area I would like him to see the place.
While driving to the appointment my partner and I discussed how the meeting would go. After chit-chat conversation would lean towards the possibilities the owner had i,e; renting himself, listing with a realtor, exploring options with us etc.
After we all get to the property, introduce ourselves and look around a bit we got to talking about what we thought of the place. It was remodeled and very nice. The buyer wanted to sell to avoid the maintenance of renting but would rent if pressed.
The conversation started off ofcourse with the offer price told to us by the owner. We knew this already going in but it helped guide the process. I watched the negotiations go from a dicounted price, to an elevated price, to a lease option, to an equtiy share.
The owner was savvy with most of the terms and buzzwords but my partner spoke not in jargon but in plain language "So we can split the profits of the sale" not "Let's do an equity share" This helped clarify the process and avoided the showy use of terms, even though the guy was an investor.
This may seem like common sense but it very helpful to watch it in motion and can realy bring some REI off the page/screen
There was a lot of things repeated and a lot questions asked but well worth the time.[ Edited by 3qu1ty on Date 11/14/2003 ]
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