This powerful question can be absolutely invaluable in your business. Recently I saved myself around $90,000 just by applying the kinds of negotiation strategies I teach in my Super Secrets® to Wealth do-it-yourself real estate investment home study course.
How can this benefit you in your business?
You can use the same negotiation strategies that I use in negotiating unbelievable real estate deals, in your everyday business life just by continuously asking the question: “Is that the best you can do?”
It sounds very simple, but most people are too afraid to ask for a better deal because most of us have not grown up with a negotiating mentality as part of our culture. In fact, we often feel too embarrassed to ask for a discount and therefore end up paying the full retail price for many of the things we buy and even invest in. Sometimes we may be afraid of offending the other person by asking for a better deal. In other cultures, negotiating is a way of life. They expect you to haggle over the deal before it is concluded.
Here’s how I negotiate to buy positive cash flow real estate:
Recently I went on an investment property buying trip to Queensland and found properties for as little as $47,500. In just three days I researched the area I was in, finalised four purchases and placed offers on six other properties. After negotiation, the prices of the four properties I purchased came in at $58,000; $63,000; $63,000 and $53,000. The rental returns on all theses properties are between $120 - $135 per week. By the end of that month I had bought nine properties for $63,000 or less, and generally they were about $10,000 under the current market value. If you consider that a dollar saved is a dollar earned, I made about $90,000 that month. Not bad for about 8 days work in total!
I am not telling you this to boast. I merely want to demonstrate to you that it is definitely possible to find investment real estate in today’s market for less than $100,000 if you know where to look, if you know what you are looking for and if you know how to negotiate. One of the real estate agents I was working with said to me: “Hans, I don’t know how you walk away paying $10,000 to $15,000 less for the same properties that I am selling to other people for much more.”
I simply made a lot of offers on many properties until someone accepted my offer. Once that happened, I’d set a benchmark for what I was willing to pay for similar properties in the area. I then used this as leverage to find other vendors who would accept my offers. Not all real estate agents in the area chose to work with me. Those that did, found that I make quick decisions when they provide me with what I am looking for. Now that they understand my game plan, they are bringing deals to me and are even doing some of the negotiating for me, even before I ask them to.
The same principles can be used in negotiating good deals in your business. Whether you are dealing with a supplier or a customer, you need to know how to negotiate well. It is not a case of hammering the other party until you wear them down to what you want. That may work once, but it is not a very effective long-term strategy. The key is to negotiate a great deal that both parties are happy with.
These types of property deals are not only confined to Queensland. You will find them in many areas. If you focus on looking for these types of properties, you will start to find them all over the place. Five years ago I bought investment properties in Sydney for as little as $69,000 and my average investment was around $85,000. At that time the average price for real estate in Sydney was around $250,000. Sydney has seen some excellent growth since that time and these properties have all increased substantially in value. Despite the growth, it is always possible to find motivated vendors and great deals if you are willing to do the legwork.
Similarly, you will always find business partners who are willing to do a better deal for you. All you need to do is ask!
Oh – what about the big glut of units in Sydney, Melbourne and Brisbane right now? They are at the high end of the market. This is also the high-risk area. The properties I advocate buying are average properties which you can rent to average tenants in average suburbs at average rents. This end of the market is always looking for places to rent. In fact, I have a waiting list of people to rent some of my properties as soon as they become available.
In the
Super Secrets® to Wealth do-it-yourself real estate investment home study course, I teach you how to sniff out bargain properties that will put money into your pocket. You’ll learn how to do the opposite of what the crowd is doing. You’ll learn how to make money from positive cash flow real estate while the negative gearing suckers are busily losing it. The course consists of 6 hours of audio training and a 52 page workbook. On this course I reveal my exclusive RTP formula which I use to compare one property with another and to negotiate unbelievable deals. Even the real estate agents wonder how I do it! If you are still wondering how to create positive cash flow income from real estate costing less than $100,000, perhaps you ought to invest in this course now. If you want to become a better negotiator and build wealth in the process, this course is for you
About Hans Jakobi
Hans Jakobi is an educator, author and investor. He is the author of six best-selling books including, How To Be Rich & Happy On Your Income which is available at:
www.supersecrets.com and the presenter of the Super Secrets® to Wealth do-it-yourself real estate home study course. Join Hans Jakobi’s FREE Super Secrets® Online Newsletter
© 2002 Hans Jakobi. All rights reserved worldwide
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