How to Negotiate Killer Real Estate Deals for Any Property Type with Any Off-Market Private Seller

‍1st Call:

This isn't a sales call. This is a first date.

My grandpa said "You have 1 mouth and 2 ears. Listen twice as much as you speak."

When talking to boomer RE sellers, have 5 ears & let them do almost all of the talking.

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All of your talking should be in asking questions.

Most won't want to sell, so accept that upfront. 

That means nothing.

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We're in a recession and they probably don't like our sitting president.

Use that to your advantage.

The future is unknown for both parties here, not just him.

Make sure he knows your risk, too.

You're playing the long game on these calls.

And on the 1st call especially.

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No numbers yet! Just learn.

Let him ramble about his problem tenants and issues with the city, the neighbors, and his ex-wife.

With every word he speaks, he's trusting you more.

The more you feel like you're wasting your time, the less you actually are.

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These calls may take an hour+. Most will lead nowhere.

Wrap up the 1st call by thanking him & promising to call back tomorrow.

Actually call back tomorrow.

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2nd Call:

Get to the facts of the property. He likely covered some of these yesterday, but now you need them all.

Whatever pertains to your deal.

68-year-old Bill is 10x savvier than you.

Don't let his country-boy demeanor fool you.

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Be complimentary but not overly excited. It's a balance.

Finish the call by asking him for a ballpark price.

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Use those two words:

Ballpark. Price.

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No anchoring. No bottom dollar. You only know 20% of what you'll learn before closing.

Thank him for his time and promise to crunch numbers & call back. Don't respond to the price.

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Call 3:

After crunching numbers, if you think his price is within 30% of your price, call back & offer to go see the property.

I'm assuming it's in driving distance & you aren't at scale.

When at scale we'd get them under contract BEFORE visiting.

I don't advise that at first.

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Visit 1:

Don't wear a Patagonia Vest & Cole Haans.

Walmart Wranglers & a polo shirt.

Boots are a nice touch.

I hope you don't roll up in a Model S.

Rent a Dodge Ram if needs be & drive it through the mud.

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THESE. THINGS. FREAKING. MATTER.

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This visit is when you'll do more talking.

I hope you were taking notes on calls. 

Talk about things that he can relate to, not about your JPEG monkey.

Firm handshake. Look him in the eye.

Tell him about your family. No kids? No problem. Tell him about your mom.

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Walk the property. Oh, & know what you're looking at.

Don't BS him. Use the terminology that he uses.

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If you say "cap rate" then just turn around & get back in your rented truck & return the Wranglers. NGMI.

This your 1st deal? Tell him. Be honest.

Transparency is stronger than experience.

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Ask *specific* questions. It'll impress him.

Before leaving you talk price.

You aren't here to waste his time or lowball. You're interested.

Based on (insert whatever legit data here. Local comps, issues, recent sales, market conditions, etc.) you can only offer him X.

He'll likely scoff. Doesn't matter.

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Long game, remember?

If you're smart you have 5 of these visits lined up today.

Promise to keep in touch. 

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KEEP IN TOUCH!

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Take note of things you see.

OSU sticker on his truck? Send him a shirt a week later.

Wife loves gardenias? Send flowers.

Every small act saves thousands & gets him to a yes.

The point of this whole thread is this:

Sales are about relationships. In RE, the buyer is the salesman.

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We go out of our way to NOT buy a car because the sales guy is a douche.

We'll pay more if he's chill & similar to us.

Invest less time in finding & more time in people.

At any given time you should be nurturing 10-20 deals like this.

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It'll cost you, but I promise it will pay dividends.

This is exactly how you negotiate screaming deals at great cap rates.

This is how you find your 1st deal. The one your LPs will love you for!

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Hope you enjoyed!