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7 Myths About Real Estate Investing That Are Costing You Tens of Thousands of Dollars
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Take Away Power For Real Estate Investing
As a real estate entrepreneur, you must decide to learn the
secret power associated with the takeaway. Maybe, you've already
used it before. You may have used it and didn't even know it.
Regardless, this method is a powerful trigger that will work
wonders when negotiating with either a buyer or seller. This
technique will definitely light a fire under your prospect's
rear to get them moving regardless if you're on the buying or
the selling side.
Here's what happens: you basically take away what ever it is you
were offering. Maybe you take away a certain price on a property
to hold out for a higher price, maybe you take away the ability
to buy the sellers house or maybe you take away the deal all
together. For example, let's suppose that you're selling a
property for $100K. You have an offer from a buyer for $80K. You
then counter the offer at $90K. At this point, you're pretty
close to reaching an agreement with the deal, as you are only
$10K apart. Well, the buyer offers you $83K as an attempt to get
you lower.
At that point, you go back to the buyer and apologize that you
made a mistake and that you feel awful about it. You tell them
that there is no way that you can sell it for the $90K, that the
lowest you are able to go is $93K. Now, in most cases, the buyer
will not even talk about getting it below the $90K. They'll want
you to come back to the $90K.
This is an example of the classic takeaway. This method is
almost magical and really takes away the pressure from you and
puts you back into the driver's seat of the negotiations.
Just recently I used this very technique on a note buyer that
wanted me to jump through all these hoops to sell the notes to
him. Here's what happened: We had a 2nd mortgage that a guy owed
me around $23K. The borrower was current on his payments and had
an excellent pay history with us. The note buyer had offered me
$19K for this note and I accepted. Well, after a couple of weeks
of goofing around, I still didn't have the money or a note
purchase agreement. So, it seemed that this guy might be a tire
kicker simply wasting my time, so I get on the phone with him
using the takeaway. I simply told the note
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buyer that I had
given him more information on this note than I had given any one
else with the notes that I had sold to in the past and that I
wasn't going to continue to waste my time to hold his hand.
Then, I told him that maybe this deal wasn't for him and that I
had others that wanted to look at the note. I also told him that
I didn't need his money and that it really didn't matter to me
if he bought it or not. I then said, "however, if you are
serious about this, then I need the note sale agreement on my
desk within 30 minutes and the money wired to my account within
48 hours." The outcome of this was that he wired the money to me
in less than 48 hours of this conversation.
The takeaway method works like gangbusters. But, you may ask
why? Well, it's proven that we all are motivated by scarcity. In
other words, if there is a product or service that is freely
available, then the desire for that product or service is not
that great. However, if there is a limit or some deadline to
that product or service, then it will increase your desire to
have the product or service. That's why you see so many
deadlines with promotions. And this works the same way with your
real estate transactions. See, once you're in negotiations,
people already imagine having the money from the sale of their
property or they've already imagined having that investment
property added to their portfolio as they figure what their
monthly cash flow will be. So once, you take what you're
offering, the desire for the item increases. Whether it's the
desire for you to buy the seller's home or whether you're
selling your latest deal.
The point is this: the takeaway works. So, next time, your Real
Estate negotiations come to a stand still or they're not
progressing at the rate you'd like, then try the takeaway. If
you don't see the value in using this one technique, then you
need more help than I'll ever be able to offer.
About the author:
Derek Pierce, a 5 year, full time Real Estate Investor, shows
you the exact strategies to his success in his Free Book: "How I
Went From Corporate Guinea Pig To Real Estate Success". Get your
copy by going to http://www.thereisecrets.com
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