Now we are in a very import module talking about negotiate everything. And what I mean about negotiating every day is absolutely everything you’ve already came out of the womb negotiating. Are you sorry about that. We’re going after the topics. All right. Let’s go into it. When I wrote a chapter in a book about negotiating everything and have you ever been to Mexico have you ever been to Jamaica. Do you ever pay retail for anything that anybody has ever sold on the street. So why would you here. Yes. It’s the same thing with hotel rooms and anything else. In fact the first seminar I ever went to making it big little deals in 1981 in McLean Virginia. Jack Miller and John child were talking about. I got up in the middle of the class renegotiating my hotel room. I literally did it in the middle of class. I came back to my seat that was like sitting five feet higher because I to the counter and I immediately took action and it starts with that woman it pertains to real estate and you’re going to talk specifically about buying houses right now. OK. Because really we all negotiate with your girlfriend. You did some negotiating to get away the same thing and you’re still negotiating you’re saying you’re not married talk to somebody that is they will tell you exactly what I’m saying. Right. But the thing is when you’re buying houses again and you don’t you have to know what you’re negotiating for. OK. Many people they want to negotiate for the sake of negotiation.
But what you are trying to negotiate. And I say that to draw a very critical point. First of all when you’re buying houses the first thing you have to do with the seller is you have to be able to develop. Yeah you got to get them to work through that. So that’s number one. Number one if you’re seeing any good. What are you negotiating for. Right. You try to get them to like you and trust you because if they like you a little you might be able to move to trust and try to find some areas of common ground. And it just really depends because some people are very matter of fact other people need to be nurtured in their conversation. And it all comes out of that whether you’re going into their Hulsen a habit you pay attention to the dog you talk about the dog or whatever the things that are important somewhat important to you. Exactly because you’re just trying to develop a common ground common area that you can speak about freely so that there more free to give the information surrounding the circumstances of selling your house. And that’s critical. You have to find out why people are so if you don’t find out why you have no idea of what you’re negotiating for. OK. So when somebody tells you we have to we’re buying a bigger house OK and we’re going to sell this house and use the money to buy another house that immediately tells me something probably can’t take over their finances because we’re going to need credit. However there is a way to structure that.
But that’s not for this module right now. But I need to think in terms of giving them cash. Nothing else is probably going to work. So that it’s a matter of what do you owe on the House and how desperate. What are your timeframes. So you’re motivational and you need to find out the timeframe. And then if they do have a point you know different tenants are rentals and I’ve done this so many times that you have no idea. And if they tell me they have a rental house I would always say well how did that go for it. And then they would start telling me about them. And I would actually help them live it know I. They did. Why did you say that they broke a hole in every single wall. What did you think happened. Yeah. How did that make you feel. And you just continue to draw these emotions to the point where they still are starting to feel the pain and that pain is trying to move them along your negotiation train getting them to come to an agreement that makes a win win situation for you and for them for them for getting rid of the problem for you. You’re creating an opportunity but what opportunity are you create here really are you trying to buy the house to keep it as a home for long term development. Well when you’re trying to buy the house you can assign it to other fire that’s going to fix it and sell it or are you going to do rehab.
So you have to know we’re going to take them because your line of questioning is going to reveal to you the path of progress toward what questions you ask now. And what I mean by that is simply this if I’m talking to somebody and I don’t want to buy this house and keep trying to figure out and it’s all comes through the questions and they have to give and take it that’s going to work. Yeah. OK. And oftentimes I can get people to hold them you know sell it to me if I understand the situation. You know what are you going to do with the money. Well I’m going to tell you. We talked about this in recent months. But sometimes he I’m going to put it in the back. I’m curious if you were kind of returned it to you. You asked a stranger question. Let me ask you if I could and I think it’s an old one. I don’t even because I don’t have any of them. And you know why that you can see your money in a bank account. I got news. It’s not the. OK. If you’re money if you’re looking at a statement I’m sorry your money sitting there you’re getting nothing for the tweet. No I love what you’re saying because it makes so much sense. In a sense a couple of things. What is you well know what’s the end goal for that. What’s necessary to establish a core. You know I remember we discovered a really cool metrics for the status or meaning if you’re trying to do a tire deal and you haven’t even got ten minutes into the conversation you really aren’t even established yet.
Right now you’re just getting friendly but it’s after it happens. Ten minutes after that kind of thing we’ve ever so ask open ended questions instead of like you know how are you feeling today. Good. So what are you up to. Totally different. You know tell me about your property right. It is your property. Nice. Yes I. The open ended question that you got. Why time frame by hold was the end result. So now we’re on number six. Let me just do a side note here. We have forms that we don’t need when I’m talking to somebody on the phone. I know it uses impetuous person. If they’re fast they want to hurt you or if it’s soft. Sometimes they have 20 minute conversations. People around me can’t believe it because we do a lot of marketing. And if your phone is blowing up and you don’t know if this person is a good candidate or not you don’t want to spend 20 minutes talking to somebody when all you had to do was say how much you owe 200 grand and you’re trying to sell a house for botanical were 200. You have to be able to determine failure and so very very quickly so they don’t waste time with people. Sometimes I don’t go 12 although very very good but sometimes I make 20 minutes. It just all depends. You know that’s up here.
That’s just a matter of doing this over and over and over again thousands of times I say thousands of times and this is going to take me off again because there’s a book out there called Outliers Malcolm Gladwell and he talks about you need 10000 hours in a business to be an expert. And I have way more than that in this business. As you get more time in it you will become. Yes. And you will understand the weight as these questions in the right order. And we do a lot of things that get us minor closes all the way through. We try to get them to say yes. And so you know so we called it getting minor agreements moving toward a major close. That’s from Tom Hopkins from one of the greatest sales teachers in our country. And I’ll cast things like this. Let me get this right Frank. You want to sell this house. You want to be part of this on August 15. Is that right. Yes. What can you say to that. No no I want to say for the rest of my life. August 15. But if he says he believes it I say. I’m not really sure how much progress we’re making and correct me if you need your credit right. You have to buy the next house because you’re trying to get a bigger house for you and your family. That’s for sure your jobs right. OK. So I tie all this stuff down but what I ask if you have the bus. That’s it. So you talk to a realtor realtors they didn’t do anything for you. What do you think. It all depends on the situation.
If I was able to put ten thousand dollars into your house right now closing on the day you would one day was the 21st the 21st of whatever it was. That work for you and your family and prosecutors. So it’s a matter of tying them down and getting wider agreement as we’re moving toward a bigger close. No but I’m saying I know that my endgame in that it is I’m going to buy it. I’m going to fix it wholesale. I want to just buy it wholesale or I’m going to buy it and fix it and retail. That’s probably something that I’m not going to keep if it doesn’t make sense. No. When you have more money than time you can buy houses and just keep them. It doesn’t make any difference when you’re young in this business you want to get creative terms because it’s time and time to time your money. Houses go up in value either heard or censored hedge against inflation and you’re paying them back with cheaper dollars. So I can structured deals where people need like 20 grand since I think of a specific deal about this house was Springhill and the guy needed twenty thousand dollars this is going the market. DICKERSON We agreed on 100000. But he held a note held no interest for a very low payment five hundred dollars a month which brings him back to unsecured just a promissory notes for a term that allows for cash which didn’t raise the interesting. That’s a little bit more fancy sophisticate but eventually the guy needed the money and we worked out a deal right.
His daughter doubt very very steep discount because he finally figured out the time that he’s getting that money later but he needs to tell us that now he’s going to tell you which just counted number for me. I just had a much bigger gain. So you have to know which way you’re going because often when we’re talking to people that will tell them over the phone don’t blow it over the phone don’t want to drive 90 miles in the wrong direction to go look at a house you know you’re wasting your time. Yes. So if you think it’s an opportunity that I maybe got richer. But it’s an important point. You know you want a hundred eighty thousand dollars Hospice’s to get this right. This is free. I know I can do that. Let’s get together. What would be better for you today at 6:00 or tomorrow morning that would give her an alternative a choice question either answer is good for me because either way that means she’s moving forward tonight or it’s tomorrow. And when people say they got such a great deal I sometimes said you know in your neighborhood. And I said this would have been 50 miles away from her together. Yeah. And believe me. Great line. Never steal and slowmotion. The deal is good you take advantage of it right there. You do not stop. You do not pass go. Forget the 200 bucks you got credit your pocket just go. Yes. OK. So I’ll go there to you know get ready here’s how I get up and that’s when we start talking and you find out if they have needs from money. Do you want to give them enough money to meet their needs. Number one she needs.
I need 30000 dollars from my brain cancer Elysa brush reduction but I don’t want Suzanne but whatever it is that they need the money from. You’ve got to make sure that you meet the need or you have no hope for success. I said the Russian occupation. A thousand dollars a month and I’m going to do other tangent here. People have said to me that there’s food and stuff. Just look straight faced. Just remember that although if they ever figure out that you’re not paying interest that just move right into the next. Yeah. So let me buy those Yake. That’s the other side of that is I might be angling for that deal. No she’s not going to take. OK. Because I’m really coming back the twenty thousand dollar cash place I’ve seen my house. So when you step up these negotiations it’s very critical that you go your yourself which way you’re going. If they take it can I hang onto this whole infrastructure that way. Does it make sense to me or do I really get the use really terrible term pay you a dollar 51 whatever you like them exaggerate a little bit to really make the cash offer look a lot better. I don’t know. You never start throwing things like closing encounters. Once you put something on the table once you make a concession it’s a foregone conclusion. They expected anything to go back to they expect would say 100 percent. They’re going to hold it to. I know we said a lot in this module.
So I want you to please come up with one or two major concepts that you got out of here so you could actually put it to use because at the end of the day when it comes down to you know what we’re Stuyvesant we’re or gathering the buy time rebuying or everything that Arjay seeing everything that we’re teaching here true investors you have to put in action. You can only listen to so long before you put in action. So your homework assignment right after this. We want you to get on the phone and just make a phone call and have a conversation to see how long you can hold us out. Why do you want to sell even if you don’t need me if they don’t want to sell you say what would you sell. You know what was that lucky number. What does that look like for you. A great great great break. You know I see so many different ways the way you say what if. Just remember the words were you know Frankin. What if I did this. Could it work for you. No and you don’t give them two choices. Yeah you let him say no to the first thing that you’re putting on the table first thing you know in your head. Now if you’re on the phone you can hang up on yourself. If you get to pick a second choice you know exactly which way to go with him what if we did it like this and lately I’ve been saying for years let’s just go on while we’re getting is pretend I’m not making you are guaranteed that you’re not making money either for a la la land where we’re both safe.
We’re just talking Yeah I did this. Could you love it. Could that work for you and your family. You know it’s always you and your family. Yeah. You were locking the door. Whatever. It’s always you’re trying to meet their needs. Third level because from the attorney you have to talk in terms of the other people’s interest. Nobody really cares about. If you’re in their house. I’m going to tell you straight up they really don’t care about you when you leave that house except that you’re going to follow through. OK. That’s all they want to know. You have if you can’t exude the confidence to walk in the door if you’re really a solutions person you can solve her situation. You have no business being there and you are not going to get the deal. And even if you do have that stuff it doesn’t mean you’re the cool thing is and so every time you hear about you. Yes yes. That’s my wife anyway. All right guys we’ll see on the other side.