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Investing Strategies

Negotiating 101: Always Get Something in Return

Have you seen The Wolf of Wall Street?  

If not, make it a top priority. (Be aware, though, it’s very graphic.) But, if you can get past the language, nudity and drug use, it’s quite inspiring.

The movie is about a guy who parlayed his ability to sell and negotiate into millions and millions of dollars. His success, while it lasted, had absolutely nothing to do with stocks…

It was him.

His desire.  

His determination.  

His dream.  

And, his words.  

I mean, the guy made people think they had to scratch a check for $5k, for some worthless penny stock or they’d be missing out on something huge. It’s truly amazing.

Guys like that aren’t made every day. He has a unique ability to get people to do what he wants.

Most of us aren’t that influential. But, that doesn’t mean we can’t make a killing flipping houses.

Hey Moguls, Andrew Massaro here to tell you that all you need to do is master a few simple techniques.  

Here’s one: Never give up something without getting something in return.

Case Study Example  

Let’s say you speak to a seller and he wants $100,000 for his house.  

You, on the other hand, want to offer $80,000.  

You make the offer, and of course, it’s rejected. (Sometimes, with extreme prejudice.) But, for this example, let’s just say it’s a shaky no.  

So, what do you do now?  

You guys are $20k apart. And, both of you want to get this deal done.

What’s the answer?

It’s some: You compromise.  

It goes something like this…

“Okay, Mr. Seller, you want $100k and I’m offering you $80k. Why don’t we compromise, split the difference and get this deal done? Look, I’ve even brought a contract made out for $90,000 cash. Now, I’m willing to go higher than my original offer, which was my price ceiling. But, in order to do so, I need to get your signature on this contract right now. That means this is an exploding offer. If I walk out of this door with no signature on the contract, I’ll have no choice but to move on to the other deals I’m looking at right now.”

negotiateIf he calls your bluff, remind him about what you do and why it’s beneficial for him to do business with you. After all, you:

  • pay cash
  • close quick
  • take the house in its current condition
  • no Realtor’s fees.

And, also make sure to break it down to simple numbers: “What? You’re going to kill this deal over 10%? That’s nothing.”  

And, if he still stands firm, you walk out, “forgetting” to take the contract with you.

He’ll call you. They always do.

So, compromise, but always get something in return. That’s negotiating 101.

Look, you don’t have to be the Wolf of Wall Street to land a wholesale deal. Just install this little nugget into your negotiations… and observe the magic.

Say Something

Tell us about a time where you compromised to seal the deal.

 

Do It To It! Immediate Action Steps

Compromise just enough to get the deal.

Explain in basic math the small difference between your offer and the seller’s price – it could be as little as 10%!

Walk away if the seller won’t compromise.

Leave the contract the seller didn’t agree to – he’ll likely pick it back up later and call to close the deal.

Never give up something without getting something in return.
 

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