Rule of Thumb No. 1 for Smart Real Estate Investors
Filed Under: 10 Rules of Thumb
Filed Under: 10 Rules of Thumb
Today’s rule is Rule No. 1 – Don’t Be Greedy, Make it a “Want – Want” instead of a Win – Win
Real Estate Property Investing is exciting. The heart really gets pounding when you find out the size of the check you can take to the bank. While skilled negotiators can increase the results of their efforts, sheer greed can kill opportunities for buying, fixing, renting, and selling investment property.
When sellers get the impression that your primary objective is your profit, they’ll often find another seller to “work with”.
When you’ve created an excellent opportunity for profit and the desperate seller feels that you’re squeezing every last penny from them, you’ll hear a “no”! Or maybe, helpful after-the-fact relatives will find a way to pull the rug from under your deal.
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“Me first” might produce the largest profit for you one time around, but in the longer run, when you leave enough on the table for everyone, you’ll find that your table keeps getting refilled and the referrals keep coming.
You have heard the term win – win, but I just recently heard a great Commercial Real Estate Expert, Gary Tharp, say that he likes to think of it as “Want – Want”. If you give them what they want, you are more likely to get what you want.
A seller’s reason to sell is rarely about money, or the price of the house. It is more emotional, such as they want to be closer to their kids or grandkids, can’t keep up the property, etc. So take the time to find out what they want instead of focusing of being greedy and beating them up on price. It will be a much better negotiation and deal for you and the seller in the end.
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