6 Red Hot Tips When Negotiating a Real Estate Purchase

Negotiating may be the most critical part of the real estate purchase process. Being able to strike an advantageous deal with the seller virtually guarantees your profit. Negotiating is both an art and a skill that you will master with time and practice; I call it the “Million Dollar Skill”. Here are six tips to get you on your way to profitable transactions.

Know the Property

You should know as much as possible about the real estate purchase you’re about to make. This knowledge comes from researching the neighborhood and knowing how the property compares to others around it along with the cost of potential repair items you may find.

Know the Seller

The best way to learn more about the seller is to listen; use the 75/20 rule, listen 75% of the time and speak 25% of the time! People will be more likely to volunteer information if you give them a chance to talk. But if you aren’t finding out what you need to know, ask questions. Understanding the seller’s situation and their possible flexibility will help you negotiate financing options as well as price.

You also need to find out what the seller’s motivations are. Why are they selling? Or in the case of foreclosure what circumstances brought them to this unfortunate situation. Understanding the reasons behind the sale can help you structure a deal that meets their needs and yours.

Think Win-Win

The best real estate purchase deals result from negotiations that seek to provide something to both parties. There are certain things you want out of the deal and certain things the seller wants in order to sell. Every real estate purchase has several facets. If you can give the seller something they want, that will increase your chance of getting something you want.

Negotiate Terms, Not Just Price

Price is not your only negotiating point. Sometimes the terms of the deal are more important to the seller than the price. Once again, if you can address the seller’s needs in a real estate purchase, your offer will be more persuasive.

Maintain Control

If the seller counters your offer with an offer of his own, don’t let things spiral out of control. Prepare for counter offers by starting your negotiations low and have plenty of concession points. Don’t focus on price, but use other aspects of the deal in your negotiations. Don’t re-negotiate things that have already been decided.

Be Prepared to Move On

Don’t walk away from an attractive real estate purchase without offering your best deal, but know when it’s time to walk away. There will always be another property.

As you can see from these tips, negotiating a real estate purchase is more than two people in a room. Negotiations are won or lost in the preparation. Achieving the outcome you desire depends on your research and mental preparation.

Until next time – be well.

James Gage

6 Red Hot Tips When Negotiating a Real Estate Purchase

Negotiating may be the most critical part of the real estate purchase process. Being able to strike an advantageous deal with the seller virtually guarantees your profit. Negotiating is both an art and a skill that you will master with time and practice; I call it the “Million Dollar Skill”. Here are six tips to get you on your way to profitable transactions.

Know the Property

You should know as much as possible about the real estate purchase you’re about to make. This knowledge comes from researching the neighborhood and knowing how the property compares to others around it along with the cost of potential repair items you may find.

Know the Seller

The best way to learn more about the seller is to listen; use the 75/20 rule, listen 75% of the time and speak 25% of the time! People will be more likely to volunteer information if you give them a chance to talk. But if you aren’t finding out what you need to know, ask questions. Understanding the seller’s situation and their possible flexibility will help you negotiate financing options as well as price.

You also need to find out what the seller’s motivations are. Why are they selling? Or in the case of foreclosure what circumstances brought them to this unfortunate situation. Understanding the reasons behind the sale can help you structure a deal that meets their needs and yours.

Think Win-Win

The best real estate purchase deals result from negotiations that seek to provide something to both parties. There are certain things you want out of the deal and certain things the seller wants in order to sell. Every real estate purchase has several facets. If you can give the seller something they want, that will increase your chance of getting something you want.

Negotiate Terms, Not Just Price

Price is not your only negotiating point. Sometimes the terms of the deal are more important to the seller than the price. Once again, if you can address the seller’s needs in a real estate purchase, your offer will be more persuasive.

Maintain Control

If the seller counters your offer with an offer of his own, don’t let things spiral out of control. Prepare for counter offers by starting your negotiations low and have plenty of concession points. Don’t focus on price, but use other aspects of the deal in your negotiations. Don’t re-negotiate things that have already been decided.

Be Prepared to Move On

Don’t walk away from an attractive real estate purchase without offering your best deal, but know when it’s time to walk away. There will always be another property.

As you can see from these tips, negotiating a real estate purchase is more than two people in a room. Negotiations are won or lost in the preparation. Achieving the outcome you desire depends on your research and mental preparation.

Until next time – be well.

James Gage

Thoughts On The New Housing Bill & How You Can Profit!

James Gage here with Gage Consulting Group hoping that this blog post finds you and yours in good health.

If you're head is still spinning from the recent downturn in the real estate market – your not alone. Most real estate investors that I have spoken with lately are in a holding pattern and sitting on the sidelines, not doing deals waiting for the market to rebound – don’t hold your breath!

Brace yourselves for the coming weeks! Numerous real estate gurus will be broadcasting over the net and at your local real estate clubs concerning the proposed housing bill, (which the President is scheduled to sign in the coming week) that now is the time to buy property because this legislation will be the answer to the industry wide problem. Nothing could be further from the truth! In the coming week I will break down the bill in detail to show you why very few people will benefit from the bill, and how this may increase our real estate and economic troubles.

That being said, if I could show you how to recession proof your real estate investing, and make $10,000.00 profit in the next 30 days with little or no risk or money -what would you say?

I would venture to say most of you would say How?

With the best kept secret in real estate investing Lease Options!

I have been using this strategy over the last 20 plus years in an up, down and side ways market without risk or worry. I recently recorded a 1 day seminar on lease options, and if I do say myself I haven’t given this much detailed, real world information in the span of 8 hours in my 20 plus years of real estate investing and mentoring! Believe me when I say I went the extra mile in this training. Not only will you learn everything you ever wanted to know about lease options, but I will also show you how to use them with foreclosures and probates!

Before I let you go on to read over what these CDs contain, many individuals have called me and ask if lease options are legal? The answer is 100% yes, if done properly!

That is why I put together a step-by- step 8 hour, 7 CD series on "Lease Options, AKA Rent to Own?" on that very subject please visit the following link for more information :

http://www.jgage.com/L-P%20Foreclosure%20CDs.htm

Normally priced at less then a trip for 4 to your local movie theater at $97.00, it’s a great value if I do say so myself. But for the next 3 days (July 27 - July 30 ) I am extending to you, my faithful newsletter subscribers the astonishing price of only $48.50!!!

That's a whooping 50% off my normal website store price! Enter promo Code 555
on you order check out page to receive your discount.

After midnight July 30 it will return to the normal price of $97.00.

You maybe asking why am I doing this? Simple, I am committed to getting this information into as many investor hands as possible, so you can make leveraged, profitable deals in an uncertain investing market place. While others sit on the sidelines pray for a correction in the market, you will be cash flowing!

I learned early in my investing career that there is always money to be made whether you’re in an up, down or sideways market; if you know where to look and know what leveraged strategy to use for maximum profit.
So please visit the link provided for more information on this jam packed 8 hour, 7 CD Set :

http://www.jgage.com/L-P%20Foreclosure%20CDs.htm

Don't forget promo Code 555

To your success,

James A. Gage

www.jgage.com

With theses 7 jam packed informational CDs you will never have to worry about securing or controlling a property again.

In addition to learning Lease Options from A-Z, you will also learn how to use Lease Options with Foreclosures…

What you will learn on this powerful 7 CD series :

* 7 different ways to Profit Using Lease/Options. You'll learn the sandwich, the straight option, the "junker" lease/option, the landlord lease/option, the sale-lease/back sub-lease/option and much more!

* The different types of lease options and when, how and why to use them properly!

* The Killer Telephone Script. Learn what to say and how to say it to qualify potentially motivated sellers over the phone.

* Negotiating Ploys - learn how to negotiate lease/option deals like a pro!

* The Step-by-Step Mechanics & Paperwork of the Deal. You'll get the checklist for the step-by-step process for putting the deal together, including what forms to use and how to fill them out.

* How to take advantage of special financing Available for Lease/Options. Learn how to get your tenant/buyer financed by communicating the process to mortgage banks. Also, learn an ingenious way to overcome the dreaded "seasoning" issue.

* How to Profit When Your Deal Goes Sour. Most gurus only talk about the good stuff - you'll learn how to recover from a bad deal and profit even more!

* How to Avoid Personal Liability & Lawsuits. Hope for the best, but prepare for the worst - you'll learn how to limit your exposure.

* How to overcome the seller's objections and create win/win deals!! Don't let the cat get your tongue - have the right thing to say to close your deals.

* Five "Air Tight" Ways to Protect Your Deal from Going Bad. The process of lease/options is simple, unless you leave out the FIVE ESSENTIAL things you need to cover yourself.

* Tax Implications of Options for Buyer and Seller (including changes under the recent tax laws)

* All of the legal angles (that every other course left out) you need to understand about lease/options

* How to prevent a defaulting tenant/buyer from claiming an "equitable interest" in the property, including case law references.

And as a special Bonus you will receive my special report on the advantages for the Buyers and Sellers of lease options. This is the same points I use in my successful marketing material which attract hundreds of prospects!

Say Good Bye to Double Closings with Short Sales !

Hello Friends:

I just wanted to post what I believe is an alarming trend that may affect your bottom line. It seems that a lot, actually 99.95% of my fellow attorneys are unwilling to do double closings! Since the government is applying pressure on the mortgage industry underwriting policies and procedures, most attorneys do not think the appearance of creativity in regards to closings, is worth the risk.

The amazing thing to me is that even if funds from the first position deal aren't used, they still won't facilitate the closing, and suggest you wait for a couple of days to 2 weeks to schedule a closing! You maybe saying that what does a few days or 2 weeks between closings accomplish? Actually nothing!

So what do you do? An easy fix, is to have someone waiting in the wings not only to purchase the property, but to add, with your name of course on the release of info document that you fax to the bank at the beginning of the process. After, you negotiate the short sale you let them close on the deal and you get cashed out later!

Understanding & Using Hard Money

James Gage here with Gage Consulting Group hoping that this e-mail finds you and yours in good health.

If you're head is still spinning from the recent news about the trouble with Fannie & Freddie Mac, the collapse of Indy/mac Bank on Friday, and the changes in the lending marketplace, and you're wondering how the heck you can finance your investments with the lending industry running scared from anyone but the best buyers, you won't want to miss out on "Understanding & Using Hard Money".

Banks are even tougher these days with who they're lending to, and they're looking more and more at your credit. What if you have less than perfect credit, don't know how to best present your deal to the bank, want to get commercial financing, would like a line of credit for your business and investments, or are confused by the new real estate investing loan requirements and how you can use them to your advantage?

Before I let you go to read over my exactly what this CD contains, many individuals have called me and ask if I would put together a step-by- step CD on "Hard Money" well your wish is my command. I have put together a CD on that very subject please visit

the following link for more information http://www.jgage.com/hard%20money%20CD.htm

but it doesn't stop there!

Normally priced at less then a few trips to Starbucks at $29.95, it is a great value if I do say so myself.

But for the next 3 days (July 13 - July 16 ) I am extending to you, my faithful newsletter subscribers the astonishing price of only $14.97! That's a whooping

50% off my normal website store price! Enter promo Code 555 on you order/check out page to receive your discount.

After July 16 it will return to the normal price of $29.95.

You maybe asking, why am I doing this? Simple, I am committed to getting this information into as many investors hands as possible, thereby getting our properties financed or under control, not only does that increases our bank accounts $$, but it will also help our economy hopefully stabilize.

So please visit the link provided for more information on this jam packed CD :

http://www.jgage.com/hard%20money%20CD.htm

Also, as a thank you bonus I am including: A HARD MONEY CHECK LIST AS DESCRIBED DURING THE CD PRESENTATION. GET YOUR INFORMATION ORGANIZED FAST; THIS WILL CUT OFF HOURS OFF YOUR DOCUMENT PREPARATION TIME FOR THE LENDER.

Don't forget promo Code 555

To your success,

James A. Gage

www.JGage.com

With this CD which is jam packed full of information you will never have to worry about getting or controlling a property again.

What you will learn on this powerful CD :

On this CD James, along with a veteran hard money lender go over in detail the following topics:

• What is Hard Money?
• The Process.
• Why using Hard Money is cheaper then getting a partner!
• When it is not appropriate to use Hard Money.
• How to use Hard Money with Single Family Rehabs, Multi-family, Acquisition and Rehab, Commercial Acquisition and Rehab/Construction, Land / Subdivisions, Condo Conversions, Flips and Short Sales.
• How to use Hard Money properly.
• Guidelines & Requirements.
• Myths vs Truths about Hard Money.
• Terms
• Documentation needed for a deal review
• Costs
• Where to find ethical Hard Money lenders.
• What questions to ask and what references to ask for.

And of course like all of James's products you will receive much more.

Real Estate Tip of The Month : Short Sale Pre-Foreclosures

Hello All:

Here is your July real estate tip of the month. When dealing with pre-foreclosures, and deciding whether to do a short sale, find out up front if the mortgage had PMI insurance! Why? If you were active in real estate investing in the late 80s early 90s when we were in a foreclosure cycle, but at a much lesser magnitude, most mortgages hadPMI insurance. This allowed lenders to take back properties and turn down the majority of short sale offers, and bring those properties into their REO inventory - thus lessening there financial exposure.

What's different in this cycle we are experiencing is that do to creative loans like 80/20s, the cushion is not there! So it stands to reason, if you know how to navigate the short sale process you will be able to get unbelievable deals ( just make sure you have someone in the wings to buy it).

If you stumble upon a deal that has PMI insurance you may want to move on to a property that doesn't have any! That doesn't mean that it is impossible to negotiate a good deal; just more complicated. If you would like to take your short sale skills and tactics to the next level, please do not hesitate to take a look at my investing tools at http://www.JGage.com and click on investing tools or products.

Be well.

New Resource: Negotiating For A Living

Hello All:

I hope you all had a safe and pleasurable 4th of July. Please forgive me for being away from the blog for the last couple of weeks, but I have been busy finishing up a web site that I have been trying to get up for a year or so! That being said, most of you know I have a background as an Arbitrator, which caused me to bring those negotiating skills into my successful real estate investing, and which I have imparted to my mentoring students.

I have started http://www.NegotiatingForALiving.com to teach individuals to do what I have done for 21 plus years! If you are looking for great way to fund your real estate deals, you owe it to yourself to stop by www.negotiatingforaliving.com and watch my video on negotiating for a living.

Until next time be well.

James Gage