Real Estate Negotiations (Part 1)

Negotiating is a necessary skill in real estate investing. Without it, you will find yourself overpaying for properties, contractors and even giving away too much equity on your partnership deals.  I actually love negotiating and quite frankly…. I think I’m pretty good at it. That’s why I decided to start this series on the topic. I don’t know exactly how long it will be but I just want to give my readers a leg up on their opposers.  So here’s my first tip….

 

"He who NEEDS most, loses" - Every negotiation starts with a Need and a Desire. If you're working on a particular deal, ask yourself, "Do the sellers need to sell or do they merely want to sell?" You will definitely workout a better deal for yourself if the sellers need to sell the property. On the flip side, you must ask yourself the same question. "Do I need this deal to workout, or do I merely want it to work?" If you feel that you need to buy this property for whatever reason, then you really should check yourself out to see if there are any alternative resolutions to your problem before you agree to anything. You certainly don't want to put yourself in a position that you'll regret down the road. Remember, you're an investor, you should only invest if the numbers work in your favor.

Bottomline.... Always be in the strongest negotiation position!