NEGOTIATING FOR BENEFITS – COLUMBO STYLE
To begin with, investing in real estate for money is a whole lot more about people than the property itself! Wow – I always thought the property counted! I do hope Jay’s not smokin’ those funny cigarettes again! Here’s the deal gang – let me explain in a simple, easy to understand sentence. Real estate investors, like myself, are after the benefits. Benefits are where it’s at – but in order to get them, you must first find the folks who can provide them – or will accept them. Notice it works both ways. Webster told us that - “Confer with another and arrive at a settlement”. That means at least two players must be involved to negotiate anything.
Let me give you an example of this benefit idea so you don’t misunderstand I purchase fix-up houses and I’m always searching for sellers who will carry back the financing – or at least their equity portion. I quite often reject the deals when sellers won’t do the financing. Seller financing is a high value benefit I lust and crave for. I’ll likely buy your fixer-upper houses if you give it to me. If not, I probably don’t want your houses! Can you see what I’m saying? I’m after the benefit of seller financing and that makes your property attractive to me.
When I negotiate with sellers to purchase their real estate, I spend countless hours doing “Columbo style” detective work. I talk with them, I study their surroundings. I meet with the kids, I drink coffee with the grown-ups and I try very hard to keep my mouth shut – at least as much as I can for a blabbermouth with a large ego. I have practiced very hard to do this and after 40 years I’m making progress.
COLUMBO’S TECHNIQUES ARE VERY PERSUASIVE
First, before you start arbitrarily changing or negotiating terms and/or conditions, make sure you can show the reason why. If you can’t, they’re probably not valid. Worst of all, when you can’t, it will do severe damage to your credibility. You don’t need bad credibility, believe me.’
Secondly, it’s more important to listen to the other side. You can answer yes or no if you train yourself. But listening to others will provide you a wealth of knowledge and information that will help you structure offers or counter-offers. People love to talk! If you’re a good listener, you’ll be very popular with most folks. Columbo is very good at this. Often suspects tell him enough to hang themselves. Makes his job much easier, wouldn’t you say?
Thirdly, never get emotional! Don’t be critical and above all, never “talk down” to anyone. If you humiliate, embarrass or ridicule, you’ll lose all chance of negotiating a winning deal. Even sellers who are about to lose their shirts won’t do business with someone who intimidates or tries to overpower them. Courteousness and understanding are two of the most powerful tools in your “negotiating kit”. Use them generously; they’ll pay big dividends. Once again, Columbo is a master at this!
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