Hey everyone, Grant Kemp here from Creative Cash Flow. Today, I want to talk about closing real estate deals effectively. Negotiation is key to your investing career. Let’s dive into what it takes to get that signature on the dotted line.
Know Who You Are
Who are you? Know yourself before stepping into negotiations. This understanding and consistency in your pitch build confidence and trust with sellers. If you’re clear on who you are, you’ll naturally convey that clarity to them.
Clarity in your message is crucial. Look at successful leaders like Donald Trump or Barack Obama. They had clear, concise messages that resonated with people. “Make America Great Again” or “Change” were powerful because they were simple and allowed the audience to interpret them personally. Mimic this clarity in your negotiations.
Be Ethical and Transparent
Ethics and disclosure are not optional. Be upfront with sellers. It’s tempting to sweep things under the rug, but honesty builds trust.
Avoid giving cliched answers like, “I just love helping people.” Be honest about your financial motivations. When sellers understand that you’re there to make money and that you can help them, it builds a stronger relationship of trust.
Master the Art of Negotiation
Study and practice negotiation techniques. You may have a natural knack for it, but always strive to improve. Books like “Influence: The Psychology of Persuasion” by Dr. Robert Cialdini are excellent resources.
Maintain Your Integrity
Don’t let greed sway you. Stick to your ethical standards, even when tempted by a big payout. This integrity will shine through in your negotiations and attract more business in the long run.
Create a mission statement and stick to it. This will keep you grounded and focused on doing the right thing.
Use Your Unique Advantages
Leverage your unique attributes in negotiations. Whether it’s charm, appearance, or financial muscle, exploit what you have in a way that builds rapport and closes deals.
Always Be Closing
From the moment you start a conversation with a seller, keep the end goal in mind: closing the deal. Every interaction should move towards getting that signature.
Use phrases that assume the sale: “When we sign the contract today…” or “When we close this deal…”. These small linguistic shifts keep the momentum going.
Be Honest About Your Motivations
Be upfront about your financial motives. This transparency cuts through a lot of negotiation runaround and sets clear expectations. Sellers appreciate this honesty and are often more willing to negotiate favorably.
Back Up Your Offers with Data
When making an offer, show sellers how you arrived at that number. Bring your laptop and show them comparable sales in the area. This builds trust and shows you know your stuff.
Explain the benefits of selling to you versus going through the traditional selling process. This comparison often helps sellers see the value in taking a slightly lower offer for the speed and convenience you provide.
Proper Expectation Setting
Set realistic expectations, especially in complex transactions like subject-to deals or wholesale transactions. Under-promise and over-deliver. This approach turns satisfied clients into evangelists for your business.
Conclusion
Closing deals is an art that requires clear communication, ethical behavior, and constant improvement. Understand who you are, be clear about your motives, and always close with confidence. Watch related videos, study negotiation techniques, and keep refining your skills.
I’m proud of you for taking these steps to better your craft. Keep learning, stay ethical, and good luck closing those deals. For more resources and tools, check out Propelio and follow us on social media.
Until next time, keep practicing and closing those deals!
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