What You Missed April 2017 General Meeting
by Rob Earhart
Negotiation and Communication
April 4, 2017
Walter said, “I do this to share with investors.” He continued, “I always listened to tapes and CDs and learned a lot. Now I just want to share that knowledge. I worked 30 years for the Air Force and the postal service and now I just want to help.”
Have you heard: “Do what you love and the money will follow”? How many believe in all that?
Walter described his childhood and his path through the Air Force, when he got married, and when he moved to Florida. “In 1984, I got licensed in New Jersey and have kept it up. I am now a Broker and keep up with my educational requirements so I can help people with purchasing properties,” exclaimed Walter.
I recommend checking out my website to see when the classes are going on. I have a lien and tax certificate sale class where I teach how to buy tax liens. My website is youandmerealty.com.
“In the fall, I do a money, credit and finance class because you have to use your money or other people’s money to invest.”
“People don’t buy what you do, they buy why you do it,” from the TED talk “Why we buy.”
Walter said, “Isn’t that true? We buy by what we feel.” Some of the people I’ve learned from: Pete Fortunato, Jack Griffin, Jack Shea, Lou Brown, etc. I learned how to speak in public from Toastmasters.
Carleton Sheets informed us to “Let the sellers know they have competition.” Walter talked about the different types of people and how you must consider their styles in any negotiation.
“The law of attraction: you have to take action.” Start making offers, negotiating, etc. When you get a no, you just step to the side and start again. Ask more questions because the first reaction is a no.
People like to say no, so make it easy for them to say yes with the “suppose” technique. That adversary in each person is in control. With the suppose technique, you precede the question with, “suppose I could show you how to sell your house for the highest amount of money, is there any reason why you wouldn’t listen?” questioned Walter.
If you give honest sincere appreciation, you will win over many people. You want to get the other person to agree, so get them saying yes.
With phone negotiations, you want to be the one called, not the caller.
Once you ask a question, you have to have the discipline not to start talking. Silence is deadly.
I have, over the years, collected a lot of books and CDs for my education. eBay is a good source for real-estate courses.
You have to realize that you don’t have to buy, but the seller has to sell for one reason or another. Just keep asking questions.
Bill Twyford says, “I specialize in helping people out of situations. How can I help?”
Only 20-30% of emails are opened, so it is low on impact. If you send emails, give them content to get their interest.
BATNA – Best Alternative To a Negotiated Agreement. Negotiations are not an event, they are a process. What are you willing to accept? Know what you will accept when you go into a negotiation.
There are three variables in negotiation: power, time and information. Whenever there is competition, people compete to get the prize. You have to find out what they actually need so you can couch the solutions to handle their need.
Precedents – Have they done it before? Explain: “If we do it for you, we have to do it for everybody.” Persistence - sticking to it is important.
“When you have the power to walk away, you have the upper hand but may not get many deals,” professed Walter. “Relationship power trumps everything. We do business with people we like and trust. Perception is reality.”
Time waits for no person. It’s the great equalizer. Your team is time, energy, and money. People may not change, but circumstances may. Start gathering information early. Keep probing. The one asking the questions is controlling the negotiation.
Get information from the neighbors. Once you start the conversation, build rapport before asking questions and prices.
Third-party negotiations. “I would love to do it, but my boss would not accept that.” “I heard about a guy…..sold for cash but it went thru his fingers….he sold for cash but the taxes took a lot of the money….”
Suppose I did not have any cash. I start asking, “Is there something else we could do? What if I could get you $xxx. Would you consider taking the rest over time and make higher interest than in a bank?”
Resiliency is the most important thing in real estate. You have to stick to whatever you are doing. “It’s not the how-to, it’s the want-to that keeps you going.”
Don’t waste your time on non-motivated sellers. First and largest concessions usually lose.
“Don’t give away your power by admitting you don’t have any money, you would pay more than your offer, etc. Don’t say how much you love the house.”
Make offers, make proposals. Words are important, but body language is also important. If you use the word “because,” people will normally give in.
“If you don’t ask, you automatically get a no. You have to ask and get enough no’s to get to a yes.” Always ask questions, don’t make statements. Questions open people up and get you answers. Ask questions, then shut up and listen. It’s like ping pong. You just keep on switching it back to questions.
“Ask open-ended questions: who what, why?” Closed-ended questions just stop the conversation. It does not engage them. “I hate getting sold, being forced into something.” Let them think it was their idea and you can make the sale.
Make offers, or people will not act on anything. When asked a question, answer quickly, then go right into another question. Questions control the focus of the conversation. Why do you want this property? What are you telling yourself? Don’t finish their sentences or interrupt them.
In Florida, on January first, the property values are set in stone. March 1st is when your applications have to be in. May thru June 1st, you can see the prices and bid. The list that comes out in May is a good resource. If they did not pay the taxes, they may want to sell. You can do it all yourself but if you want help, I would be willing to assist.
The biggest buyers of tax certificates are the banks. Also, hedge funds. July and August, there is a supplemental auction: first come, first served, and they will be at 18%. Each county is different, so you must check.
You can research the Florida statute at 501.1377; that describes the Florida Foreclosures process.
Walter explained, “you can find a lot more information at my website, www.youandmerealty.com.”