Hey, gang, this is Mike with My Real Estate DOJO and today’s lesson is short and sweet. What I am going to be talking to you about is how to negotiate what the motivated seller and this one tip that is going to change the ball for you guys and put the ball into your court. Let’s dive in and get started.
When you talk to a seller and you try to negotiate, or you are talking to a seller and they think that the grass is green and you think the grass is blue, you don’t want to use the words like ‘but’ and ‘however’. When you use words like ‘but’ and ‘however’ they have a negative connotation, but more importantly the sellers are already mentally trained to think about those words in a fight situation.
They are trained to think that when somebody uses the words ‘but’ and ‘however’, somebody is on the other side of them. What you want to do is come and be on the same side as the seller. Instead of using the words ‘but’ and ‘however’, you need to use the words ‘and’. If you are coming back with an objection and normally you say ‘but’, replace the ‘but’ and use ‘and’. It’s the same exact thing, the transaction is going to be smoother and the seller is not going to get a red flag or a hand up that this guy is about to rebuttal me.
Use the word ‘and’, because its more subtle. Another thing I wanted to talk to you guys about are words like maximizers and minimizers, when you are negotiating to a motivated seller. As an investor it is very crucial, when it comes to negotiation, that you use minimizers and maximizers to your advantage, because word choices are powerful. For example, when you do an owner financing and instead of telling the seller the word ‘owner financing’, because that’s a maximizer, they think ‘I am going to get so much money’, because in their mind owner financing is a hard thing and they’ve seen people say ‘Hey, I want 20 grand down’.
They are thinking all this negative plus ‘Hey, I am going to make some money type of deal and ‘no I don’t want to do this’. So they are getting all these negative things from using a word like that.
The types of word that you want to be using are minimizers. Instead of saying, I could take over your loan, that’s a maximize, a minimizer word would be –I could make your debt payments or better way to say it is this: ‘If your house qualifies, I might be able to program to make your payments month after month and get you out of this debt’. It’s the same thing as saying, ‘hey, do you want to do owner financing’, but owner financing is the maximizer, whereas me spending my good money to pay their debt is a minimizer.
It’s the same exact thing. When we go to the title company we are going to structure exactly the same. It’s very important that when you are negotiating with a seller, you are not on the other side, that you are not using words that will flag up ‘hey guy, I am on the other side.
You want to use words that say, look, I am on your side. You’ve got to use instead of ‘but’ and ‘however’, you’ve got to use words like ‘and’, so the seller doesn’t get their fist up thinking ‘hey, you are about to rebuttal them’. Point number two is you’ve got to use maximizers and minimizers depending on the situation. If you’re talking to a motivated seller, instead of saying ‘owner financing’, which is a maximizer, you need to talk about ‘hey, if your house qualifies, if I can make your monthly payments and get you out of this debt, would that work for you?’. Same thing as saying ‘hey, do you want to sell it as owner financing?’ or ‘ would it be okay if I gave you $10 000 down and $2000 a month for a 3% interest’.
See you’re not there yet, because before you give numbers, you need to give a soft offer. If you don’t know what a soft offer is, you need to watch my previous videos about soft offers, like a mathematical formula without the actual numbers, for example force equals mass times acceleration.
Once I understand that, then I can put the number into what F is and M is and find acceleration and vice versa. Okay, guys? Don’t make offers with actual numbers, when you haven’t even tried to give a fake pass and see if the sellers are okay with that, a soft offer. So, to end this video guys, make sure you don’t use the words ‘but’ and ‘however’ or when you are trying to rebuttal or trying to negotiate make sure you use words like ‘and’. Number 2, make sure you use the words correctly with maximizers and minimizers. If you are not going to use the right word and the right time, you are not going to get the deal. Another guy comes in and uses the same exact idea with minimizers, when appropriate and maximizers, when appropriate, and he will get the deal. Words are powerful.
I am a refugee to America, I figured that out. If you don’t know this, you better read some books and better come join my DOJO and get access to guerilla and creative marking.
This is Mike with My Real Estate DOJO, don’t take ‘no’ for answer. This is 2016, make your dreams come true. Fuck TV, read a book.
See you later!