Transcript
NegotiatingIgnorance is Very Expensive• Learn to expand your vision – When you don’t understand
negotiations it’s a complete gamble every time!
Successful Negotiations = The Right Preparation • Most of what you’ll learn here is how to fill your
arsenal with the right methods (unconventional wisdom).
Negotiate For Recession Proof• Commercial Property
• Not all properties are recession proof!
• Don't try to turn a Turkey into an Eagle
What Types Of Commercial Are The Best?
You Can Negotiate Just About Anything...
What About Land?
Buildings
• Income Producing
• Recession Proof
• Appreciate
• Refinance - Income stream
Land
• Not Income Producing (yet)
• No Guarantees Until: (sold or developed)
• Joint Venture (JV)
NegotiationsIf You Don’t Negotiate Your Paying Too Much
The need to negotiate is a fact of life if you want to pay the lowest priceregardless of the property type.
How well you negotiate will determine the outcome of the deal!
Negotiating the right terms will allow the right financing to do the deal.
NegotiationsMake sure to be a chameleon – you do not want to use overlysophisticated techniques when negotiating deals. The Sophistication should be in the line with the person on thephone!
Sellers Are Everyday People From Simple Farmers To Doctors
The Gatekeeper
The gatekeeper is the person who answers the phones and weeds out callers - takes your info and is told to take a message.
"You Cant Steal in Slow Motion"
They could decide if you get the deal - if they don't pass you along to a distressed FSBO or a broker of a sweet deal... you done!
The Gatekeeper
They know the politics and sometimes can tell you things others wont.
Important: Treat these people with the upmost respect, smile and build a relationship, try to chat about common interests etc.
"Ask them for help - not everyone does!"
NegotiatingPrice: How low will they go? Try to get to the Seller’s “bottom line” before proposing other terms suchas JV or seller financing. 1. What Do They Need The Cash For? 2. How Much? 3. How Soon? Knowing their bottom line will help you negotiate the other terms if youget seller financing or do a Master Lease Option or Joint Venture
Negotiating
Negotiations are one of the most difficult tasks to accomplish when it comes to getting a deal done.
It’s Actually 90% Of The Equation!
If you plan to negotiate your own deals and other parties involved make sure you’re getting what’s owed to you.
Once you have the terms its easy to get:OPM - get into the dealFinancing - long termPartners - manage - do all the work!
Negotiating
When you’re speaking to brokers and owners you must adjust your monotone.
If they talk soft respond in a soft but firm know what you want manner.
If they talk fast and are really hard then simply adjust and be equally as hard but also keep your posture and be professional.
This Business is Fun, Exciting and Rewarding!
Negotiating
Remember without communication there is NO negotiation.
Negotiations start out with an exchange of back and forth communication...
If you can make them feel comfortable it will result in an easier way towards a final negotiation.
Relationships Are Worth More Than Money™
Negotiating
REGARDLESS: This is so important
whatever you say, and you should expect that the other side will almost always hear something different.
3 Biggest Problems With Negotiations…
Negotiating
Problem #1
First, you may not be talking to each other or at least not in a direct manner where you understand each other right away.
Instead the conversation usually goes another direction - trying to impress one another.
Answer:
The Right Way is To Build A Relationship By Solving The Problem
NegotiatingProblem #2
Even if you’re talking to them directly a lot of the time they still are nothearing every word you say!
WHY?They're usually too busy trying to think about what they’re going to say next.
Answer:The best way to deflate this is to let them get it all out, listen more than talk…
Until It’s Your Turn Of Course…
Negotiating
The 3rd Problem is Misunderstanding…
What one person says the other may misinterpret.
I’ve even been in the same room and seen negotiations be read wrong from each party…
Too Busy Trying to Think Rather Than Listen.
Slow DownAct - Don't React
Its Just A Deal
Negotiating
Soft Be a chameleon slow down don’t be over anxious and let
everything out at once, don’t sound desperate.
Focus Keep control and hold your cards close to your chest. Another
words... phase into the negotiation through conversation.
Negotiating
Hard
If you’re not a hard person and have more of a relaxed personality that’s OK you can use the "Firm Silent Approach" and silence is a very, very tough thing.
No one likes the silent treatment and you can just give short answers and be real firm that will do the trick!
Negotiating
Different Types Of Personalities:
The First is The Whatever Person:
This person offers zero resistance and is almost translucent, they give up before the negotiation even starts. They agree to just about everything you say.
In this case always ask for way more then you need or want.
Negotiating
Different Types Of Personalities:
Then there's the Whatever's Fair Person:
They always say "As Long As It's Fair" you have to watch out for these types... they will put you on the spot to have you define exactly what you think is fair!
Remember: the one who states the first number is in a weaker position for negotiations.
A Successful Negotiation is Not Necessarily Fair
Negotiating
Different Types Of Personalities:
The Nice Guy/Gal Person:
They try to become you friend right away, be very generous in the beginning with smaller concessions.
You want to maintain your focus on the outcome of the deal.
Don't get soft just because they seem to be really nice.
Negotiating
Different Types Of Personalities:
The Guilt Trip Person:
They tend to set you up to be wrong in the negotiation - then try totake advantage you... like you're supposed to be feeling feeling guiltyfor being demanding in the negotiation.
Refuse to let your emotions get in the way of the deal, its just a deal.
Negotiating
Different Types Of Personalities:
The Hard Ball Person:Stubborn and tough as nails... this is the negotiators nightmare.
Why?
They're not really looking to negotiate at all!
Negotiating Rules
Top 3 Reasons To Take Notes:
1. Taking notes helps keep your attention and focus. You won't be able to think while you're writing and listening.
2. When you take notes you can quickly recap - this shows the other side your paying attention and gains trust.
3. Your notes become a record and a blueprint for the negotiation
Negotiating Rules
Top 3 Reasons To Take Notes:
Why it's so important to take notes?
Not everyone remembers every detail if the deal.
Get it Writing
When the seller makes a commitment or a counteroffer ask:
"Would you put that in writing?"
Putting things in writing makes them concrete, even if its non-binding.
Assign a note taker:
When you're on the call have someone take notes, documenting both sides of the negotiation, taking crucial notes on the fine points.
Negotiating
#1 You Always Should Negotiate
• Most people are intimidated by negotiations:
1. Lack of Experience2. Don’t Feel Comfortable
• Most negotiations are not won or lost at the bargaining table, they’re lost way before the negotiation ever started…
Your SUCCESS Depends On Your Negotiation Skills!
Negotiating#2 You Always Get A Bigger Piece Of The Pie
• Expand your thinking• Explore options• Discuss Alternatives
• How to Justify:
“On what basis am I assuming the outcome”
“What evidence makes the deciding factors – there’s no other options”
Negotiating#2 You Always Get A Bigger Piece Of The Pie
• In the negotiation ask opener questions:
“would you consider…”
“What would it be like if we…”
“What would happen if we were to…”
Negotiating#2 You Always Get A Bigger Piece Of The Pie
• Always be creative and observant – think outside the normal arena of what the other party is thinking.
• Thinking of other ways to put a deal together will give you instant advantage over the other party – about 99% of the time!
• Magic Words:
“How else can we do this?”
Negotiating
#3 When You Win Don’t Think Of It As Beating Them
• Its referred to as coopertition (Cooperative competition).
• Sometimes the only way you get what you want is to give the other party what they want.
• This means everyone gets together for a mutual benefit and that equals mutual problem solving.
Both Parties Are Satisfied With The Outcome = Success!
Negotiating
#3 When You Win Don’t Think Of It As Beating Them
• Most have this preconception that negotiations have to be tuff.
• This poor tactic starts:
• Arguments• Ill Feelings• Retaliation to a negative outcome
Remember what Goes Around comes Around!
Negotiating
#4 They’ll Give You What You Want
• Have you ever said “No way… they’ll never say YES” and then they do?
• Don’t have Limited Expectations• Always ask for more – more money, more time and more
seller financing
How – What do you say?
Negotiating
#4 They’ll Give You What You Want
“What would have to happen to make this deal work for you”
“If you can’t do that… what can you do to make it work?”
“If Your Not Willing To Ask For More Be Prepared To Settle For Less”
–Terry Hale
Negotiating#5 The Other Party is Not The Enemy
• Do NOT approach the negotiation to “Beat The Other Party”
• Rookies get more preoccupied with winning versus cutting a deal.
Sometimes it may be appropriate to be stern you must always keep your posture, professionalism and focus on the end goal.
• Note: Its almost impossible to get a positive result with a us-versus them attitude
Negotiating
#6 You Have Just As Much Power – Use it Wisely
• Power can be in a few different forms:• Technical – if you have the skill set• Personal – charisma• Positional – chosen by a group to give you power
• You have to understand:
What You Believe, You Get!
Negotiating
#7 Negotiations Create Confidence
• A very common mistake most have is they feel low self esteem
• Negotiation Skills: Learned – Developed – Improved in Time
You’ll Gain Momentum and Confidence With Each Call
Negotiating
Why Do Most Feel Uncomfortable?
• Most people have been taught that asking for something is rude
• Selfish or Greedy…
Negotiating
Don’t fall Into The Trap:
• If you get what you want others will be deprived
• This is too good to be true
• Feel Negotiations are for tuff guys/gals or professionals
Negotiating
#8 Let go Of The Ego
• Sometimes were our own worst enemies!
• You instantly give yourself a disadvantage
Answer:Always separate the person from the problem
Negotiating
Reasoning:
When negotiating your not only working to solve a problem.
Your also dealing with:• Feelings• Emotions• Fears
Be Hard On The Problem easy On The People!
Negotiating
#9 You Must Be Prepared
• Preparation will help you plan for the best.
• You want to control as many issues and address them upfront – knowing what the challenges are will increase your chances of success.
Negotiating
#10 Keep Your Options Open
• You can get what you want and are still able to give the other party what they want…
• Test new ideas and strategize at all times – have multiple exit strategies in case you get locked in negotiation.
Get Help and Get EDUCATED!!
Commercial Training Event
This Training is For You…
• Want to double your income in half the time• Get extra money without a job• Even If You Are New To Commercial
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Join me at my next upcoming event:
http://www.terryhale.com
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