Negotiating real estate deals can be a lot of fun. However it can also be frustrating if you don’t get what you want. As with anything else the best way to improve your negotiation skills for real estate investing is to take a few notes from the world’s top negotiators and get out there and hone your skills in live combat buying, selling and flipping houses.
Refusing To Negotiate
Have you ever run into a buyer or seller in your real estate investing activities who just won’t budge, yet who you end up buying from anyway? If you have great inventory or know that a seller has to sell, why not just refuse to negotiate as a form of real estate investing negotiation strategy? If you have something the other side wants stick to your guns, if they want it bad enough they will have to agree to your terms.
Now Or Never
While some may think this strategy is a little too harsh or is used to take advantage of others it can work like a charm and get you your best real estate investing deals ever. Whether you are countering offers on real estate your are flipping or making offers on distressed homes give the other party an extremely short window to take your offer as-is. If you are meeting sellers in person make it clear they have to decide right now. If you are countering an offer made to buy one of your properties give them hours (no more than 24) to accept your terms.
One of the greatest negotiators of all time was said to have kept a piranha tank in his office. For effect during negotiations he would feed them during meetings. Another CEO of a real estate investing company in Florida used to have his office decorated with swords and weapons from around the world as well as having a Colombian Boa Constrictor which he would feed live mice during real estate negotiations. As you can imagine this would definitely unnerve many who you may be negotiating with while real estate investing. This also works a treat when negotiating with new contractors so that they keep on budget and on time.