Thursday, March 20, 2014

Negotiating is Not an Art form or Hidden Talent

Negotiating a better deal is not an art form or some hidden talent. It simply takes a little thinking on how you can get what you want, and in turn, give the other party a different, but also beneficial offer. I'm attempting to negotiate $2K less on the asking price of an investment property for a 3-month reduction on a 1-year rent guarantee by the wholesale company selling the property. The rent will be $815 a month, times 3 = $2445 in potential savings for the company (only in the case there is a vacancy). As an additional bargaining chip, I proposed a direct referral to this company's website via my soon to be released e-book.  I wrote on an email to them:

"I was thinking last night how else I may facilitate the decision on a slightly less asking price for the property.  I didn't tell you this before but Meridian is in my e-book, mentioned as a "wholesaler" I bought rental properties from.  Here is an excerpt from the Introduction section of my e-book:

"During the market low of the recent real estate cycle, I found a wholesaler of residential properties.  I did my research. The company was local and they operated in the Memphis, TN area, buying foreclosed homes within the “sweet-spot,” renovating and selling them at a reasonable cost to investors.  I bought two rental properties, cash-flowing a combined seven hundred each month."

Each chapter (section) ends with "Notes" at the end.  I could place the following note at the end of the Intro:

"The real estate company I bought the two rental properties from is Meridian Pacific Properties."

I have over 1,000 contacts on FB/LinkedIn combined.  The cost of the e-book will be $2.99 so the price will not be an issue for many of my followers.  Though I can't put a cash value on the traffic (or eventual sales via my e-book referral) you may receive, it could be easily worth more than the 2K off the asking price.

Just something else to consider."

As you can see, you have to be willing to offer something in return for what you are asking for.  This is called, value propositioning.  Think about your network base as a means to offer free advertisement to companies you want to invest with/in.

No comments:

Post a Comment

If you leave a link, I'll delete your message.

Note: Only a member of this blog may post a comment.