The real estate pool will always be open for business and there is no such thing as too many investors. You can do anything from becoming a real estate agent to fixing houses and reselling them, to finding wholesale opportunities and selling contracts for a fee.
In fact, there are even courses on wholesaling houses for beginners and on other real estate investing topics. While learning the ins and outs of each type of investment is critical, it’s also valuable to simply learn the art of negotiation. Too many people jump in without getting any training on this important skill and end up having difficulty
Learn How to Overcome No’s
Have you ever been told no and then just walked away? Most people would say yes. Savvy real estate investors should consider learning ways to overcome a potential seller’s objections and overcome their nos. This can be through a series of conversations, direct questions and more. It’s important to get to the underlying reasons that might be the answer. Some newer real estate investors, especially in the wholesaling arena, would benefit greatly from a cold calling script for wholesaling.
These scripts give great options to help you overcome when someone says no to your opportunity. Being good at real estate investing often requires a similar skillset as the average salesperson. You need to know a good opportunity when you see one and understand how what you offer can help them. While of course, investing helps you as well, the deals should be focused on the benefit for the seller and less on you.
Walk Away if Necessary
Investing can feel like gambling, but in any good gamble, you must know when to walk away and then do it. There comes a point in a negotiation when the outcome is not going to be favorable for you. It’s at this moment you need to decide whether to walk away or not. Maybe you discover that the property you thought was basically turnkey is now going to cost you a huge chunk of money to make livable. While you might love the location, the property, and the potential, if you didn’t plan on a fix and flip, it’s probably not the right opportunity for you. It’s never too late to back out until the final paperwork is signed. And even then, if there was a criminal lack of disclosure, you may have some recourse.
Negotiating often feels like a dance, make sure you’re the one staying in the lead when it comes to making decisions and finalizing any real estate deal.
Stay Connected to People in the Industry
Connecting in the real estate industry is important. Knowing people who do inspections, make repairs, and even manage properties is critical. Part of your job as an investor is to know where and when to invest and what to invest in. There are real estate agents and brokers who can be great assets to you as you build your investment portfolio. They can help you view properties, get in your offers, and will even negotiate on your behalf. Staying connected will be important as you move forward.
Connections can also help you during negotiations. People love to work with those they know, like and trust and if you are known by someone in their sellers’ circle, they may be more likely to negotiate with you and give you the real estate contract. Additionally, connections in local government can help you get access to the people you need to overcome zoning and other potential issues.
Don’t be Rude
While being direct is important in real estate investing, you do not need to be rude. Keep demeaning comments, anger, and unnecessary opinions out of the real estate deal. No one likes to work with people who make them feel bad. Be direct and forthcoming with information that is necessary for the deal, but don’t let personal feelings rule you. Being rude will isolate you and potentially keep you from getting the deals you want the most. Being gracious, polite, and even friendly is still possible while being professional and trying to drive a lucrative deal.
Learn from the best negotiators that face-to-face and even phone calls are far better than trying to negotiate through text and email. The more personal the interaction, the better the outcome. Learning negotiation skills can help many new investors overcome fears and get better at finding and settling great deals.