10 Biggest Mistakes to Avoid in Negotiations

By Jim Camp

Everything you will ever have will come from a negotiation.

You are constantly negotiating: buying a new house or car, getting a new job or raise, deciding
where to go for dinner or who will take out the trash, or closing a multi-million dollar acquisition.

Do you feel nervous, maybe a little out of control when negotiating for money, a project, a new client, or a job? Are you sick of compromising out of fear? Are you tired of losing a negotiation and
not knowing why?

Check this list to see if you are making the most common mistakes when it comes to negotiating.

1. INVESTING IN EXPENSIVE PRESENTATIONS.

Organizations invest $100,000s in presentations that spew facts, figures, and logic. They think they are building credibility, when in fact they are weakening their negotiating position.

With each new fact, their opponents are thinking of numerous objections. All you manage to create with expensive presentations are objections to drive the price down.

2. USING A WIN-WIN STRATEGY.

Win-Win training drives team members to become unwitting agents. They falsely believe they must protect the relationship, so they eventually give up far too much information to the other side all in the name of protecting the relationship. You will see them battling internally for deeper concessions all in the name of protecting the relationship.

Do not try to be friends. Your negotiation opponent is not your friend. You are not seeking loyalty or a long-term relationship — symbols of neediness. What you want, instead, is respect and a fair negotiation agreement that accomplishes your negotiation mission and purpose, and fulfills his or her vision.
continue reading>>

Foreclosure Investing

Copyright © 2009 Foreclosures.com.
This article is available for free distribution under the following terms:
a) You may not edit, delete or add any content to this article.
b) You must maintain all links to Foreclosures.com.
c) This article must be distributed free of charge.
d) This Resource Box must stay intact.

Subscribe in a reader

Practice Being Like a Child

by Jim Rohn

Remember the master teacher once said 2000 years ago, “Unless you can become like little children, your chances are zero, you haven’t got a prayer.” A major consideration for adults.

Be like children and remember there are four ways to be more like a child no matter how old you get –

Curiosity – Be curious.

Childish curiosity. Learn to be curious like a child. What will kids do if they want to know something bad enough? You’re right. They will bug you. Kids can ask a million questions. You think they’re through. They’ve got another million. They will keep plaguing you. They can drive you right to the brink.

Also kids use their curiosity to learn. Have you ever noticed that while adults are stepping on ants, children are studying them? A child’s curiosity is what helps them to reach, learn and grow.

Excitement – Learn to get excited like a child.

There is nothing that has more magic than childish excitement. So excited you hate to go to bed at night. Can’t wait to get up in the morning. So excited that you’re about to explode. How can anyone resist that kind of childish magic? Now, once in awhile I meet someone who says, “Well, I’m a little too mature for all that childish excitement.” Isn’t that pitiful? You’ve got to weep for these kinds of people. All I’ve got to say is, “If you’re too old to get excited, you’re old.” Don’t get that old.

Faith – Faith like a child.

Faith is childish. How else would you describe it? Some people say, “Let’s be adult about it.” Oh no. No. Adults too often have a tendency to be overly skeptical. Some adults even have a tendency to be cynical. Adults say, “Yeah. I’ve heard that old positive line before. It will be a long day in June before I fall for that positive line. You’ve got to prove to me it’s any good.” See, that’s adult, but kids aren’t that way. Kids think you can get anything. They are really funny. You tell kids, “We’re going to have three swimming pools.” And they say, “Yeah. Three. One each. Stay out of my swimming pool.” See, they start dividing them up right away, but adults are not like that. Adults say, “Three swimming pools? You’re out of your mind. Most people don’t even have one swimming pool. You’ll be lucky to get a tub in the back yard.” You notice the difference? No wonder the master teacher said, “Unless you can become like little children, your chances, they’re skinny.”

Trust – Trust is a childish virtue, but it has great merit.

Have you heard the expression “sleep like a baby”? That’s it. Childish trust. After you’ve gotten an A+ for the day, leave it in somebody else’s hands.

Curiosity, excitement, faith and trust. Wow, what a powerful combination to bring (back) into our lives.

To Your Success,

Jim Rohn

These articles are by Jim Rohn, America’s Foremost Business Philosopher. He has been internationally hailed over the years as one of the most influential thinkers of our time and has helped motivate an entire generation of personal development trainers as well as hundreds of executives from America’s top corporations. Mr. Rohn and our other recommended “Great Thinkers” books, videos and audio tapes are available under “Sales Tools” at Recommended Reading. To subscribe to the Free Jim Rohn Weekly E-zine, go to www.jimrohn.com or send a blank email to subscribe@jimrohn.com.

Copyright © 2008 Jim Rohn International. All rights reserved worldwide.

Kick Start Your Foreclosure Investing

Copyright © 2009 Foreclosures.com.
This article is available for free distribution under the following terms:
a) You may not edit, delete or add any content to this article.
b) You must maintain all links to Foreclosures.com.
c) This article must be distributed free of charge.
d) This Resource Box must stay intact.

Subscribe in a reader

FHA Loan Ideal for Foreclosure Buyers

Hidden away in the deep recesses of the federal government is a one-shot financing plan which will allow you to not only buy foreclosures but also to pay for repairs and upgrades.

The FHA’s 203(k) program has been on the books for decades but over time it’s been rarely used. That’s changed recently, in part because the program is ideal for many foreclosure buye

This is how it works by Peter G. Miller

With the 203(k) program you get financing to purchase or refinance an existing home (it has to be at least a year old) plus additional dollars to fix it. Since the government doesn’t want you to take that extra money and just go to Vegas, it provides the construction money in draws as the repair work is completed after closing.

This program, of course, works perfectly for foreclosure buyers because it covers both the cost of acquisition as well as the expenses that may be required to improve the property’s condition.

Unfortunately, the 203(k) plan does not work perfectly for everyone.

Details
In basic terms there are three groups of foreclosure buyers: Those who want residential property for themselves, those looking for investment real estate and those who want both. Two of these three groups are possible users of the 203(k) program.

* Yes, you can use 203(k) financing to purchase a home which you will use as a personal residence.

* Yes, you can use 203(k) financing to purchase a home with one to four units, provided that you physically occupy one of the units as your personal residence.

* No, you cannot use a 203(k) to acquire or refinance a pure investment property, one you do not use as a personal residence. Investors have been banned from the program since 1996.

Why would you want FHA 203(k) financing?

Those after-closing draws and inspections represent additional work for lenders, thus you can expect to pay somewhat higher fees. That said, the 203(k) program is still a good deal because it’s far cheaper to get acquisition and construction money in one loan rather than two. This is because there’s a single settlement and thus only one set of closing costs, one set of taxes, one origination fee, etc.

The 203(k) program also comes with attractive terms. For instance, HUD says you can get financing equal to the “as-is” value or the purchase price of the property before rehabilitation, whichever is less, plus the estimated cost of rehabilitation. Alternatively, you can get a loan equal to 110 percent of the “after-improved” value of the property.

Lastly, the 203(k) program is an FHA loan. That means no prepayment penalties and no surprise rate increases. You’ll need to fully document income, debts and assets, but that’s a low barrier for anyone who pays taxes and has financial records.

Limits

To come up with the right loan amount you need to know the value of the property and you need to have a good sense of what the improvements will cost. Not all improvements can be financed under the program and the maximum available for repairs in $35,000.

“Luxury items and improvements are not eligible as a cost rehabilitation,” says HUD. “However, the homeowner can use the 203(k) program to finance such items as painting, room additions, decks and other items even if the home does not need any other improvements. All health, safety and energy conservation items must be addressed prior to completing general home improvements.”

Bring Back Investors
In 1996, when investors were banned from the program, HUD explained that its “restrictions are in response to audit findings issued by the Office of the Inspector General and are in effect until further notice.”

“A lot of things have changed in 13 years,” said Jim Saccacio, chairman and CEO at RealtyTrac.com, the nation’s leading source of foreclosure listings and data. “One of the most important is this: We’re overwhelmed with a vast inventory of foreclosed homes. It is this inventory which makes it impossible for local home values to rise. We need to get more buyers into the marketplace and for this reason HUD’s investor restrictions need to be reconsidered.”

Why should HUD open the 203(k) program so investors can pick up foreclosed properties? One very good reason is to reduce HUD’s overall marketplace risk.

HUD has insured loans for millions of properties. Anything which reduces the foreclosure inventory can help increase the value of all properties, including those with FHA insured loans. Allowing more investors into the market generally increases demand and hopefully stabilizes or even grows local home prices. In the event of foreclosure HUD benefits because with higher market values insurance claims will be smaller.

In other words, the reason to broaden the 203(k) program is not because HUD suddenly has a warm tingly feeling when investors need mortgage insurance, rather the reason is self-interest: HUD can cut its costs and liabilities by getting more investors into the marketplace.

“Ten years ago, certain lenders and nonprofits stigmatized the 203(k) program by using the program for fraudulent purposes,” says the Treasury Department in a just-issued report. Well, yes, certain lenders and nonprofits did just that — but investors are not lenders or nonprofits. We’re blaming the wrong folks.

Rather than restrict an entire program to investors because of the misdeeds of a few lenders and nonprofits back at the dawn of time, why not do a better job underwriting loans? That could solve the creepy program of “stigmatized” loan applications. Or, why not restrict lenders and nonprofits since they — not investors — were responsible for the moratorium in the first place?

It’s time that the 1996 investor “moratorium” comes to an end. Times have changed — and so should HUD.

For more information regarding 203(k) speak with local FHA lenders before considering a real estate purchase. Be sure to work with an experienced 203(k) lender, one who can help with the complexity of draws and inspections after closing. Also, if possible, get practical ideas and information from local borrowers who have recently used the 203(k) program.
_

___________________
Peter G. Miller is syndicated in more than 100 newspapers and operates the consumer real estate site, OurBroker.com.

Subscribe in a reader

In this post Alexis McGee explains why this is the perfect storm and how this is one of the greatest opportunities to flip houses in our life time.

Real Estate Investors Flip Feast

By Alexis McGee

Since the credit freeze began many buyers are unable to get conventional loans and sellers are forced to lowering their prices to rock bottom. The inventory of homes nationwide is over 9 months, buyers having the edge in most markets, and many are wondering when their market will turn around. That is, except for real estate investors prepared to take advantage of this once in a lifetime opportunity.

This is a perfect storm.

Investors have been waiting for years to see a market like this one, and are taking part in a virtual flip-fest in most parts of the country. The amount of available bank-owned properties is at all time highs. These conditions have produced the ideal buying environment. It seems the planets have lined up perfectly for these investors, as many are making deals and flipping homes as fast as they can hand out offers.

Traditional real estate investors are not the only ones benefiting from the current housing situation. Many people from the stock market are now coming over to the real estate game. These former stock investors get together and pool large sums of money to form Private Funding entities, and are providing short-term funding for many real estate investors who primarily flip homes.

It’s a marriage made in heaven.

Private funding works particularly well for these transactions. The finder investor simply enters into contract with the seller for a set purchase price, and then resells it to someone else at a higher price. Since this is actually one transaction, there is no need for a double closing at your title company. You the finder investor walk away with the difference. And you get paid when the seller gets paid. It’s completely legal, ethical and in most cases provides a much-needed relief for the seller.
Everyone leaves happy.

Flipping homes is fast becoming the norm again for many savvy investors. They have little at stake in the deal, and can make a considerable amount of profit on a single transaction. Depending on the price-range of home, it can be from a few thousand dollars to as much as 5-figures or more. Not bad for a few hours of work.

Considering how many homes that will sell for 50 cents on the dollar, and the predicted amount of foreclosed homes that will be entering the market this year, it appears the “flip feast” will continue for many fortunate investors for some time to come.
Until banks stop requiring borrowers to come up with ridiculous down payments, as well as lighten up on their credit score minimums, the only sub-prime source for borrowers will be these very same Private Funding Groups.

On April 1st the Obama Stimulus Plan changed the housing market for real estate investors.
Keep up-to-date with current changes in the financial, real estate and foreclosure markets and the ever changing Federal stimulus plans… and how they affect YOU the foreclosure buyer and seller in my monthly

FREE New Foreclosure Investor Webinar and Conference Call.

* Don’t miss Alexis Live via Teleconference, Toll Free on Wednesday, September 30, 2009.

* Gain Practical Step-by-Step “What to do and How to do” Foreclosure Investing Instructions.

* Enroll in our Interactive Hands-On Investor Tutoring by Alexis and her Proteges.

* Hire your own Foreclosure Investor Personal Coach

Kick Start Your Foreclosure Investing

Copyright © 2009 Foreclosures.com.
This article is available for free distribution under the following terms:
a) You may not edit, delete or add any content to this article.
b) You must maintain all links to Foreclosures.com.
c) This article must be distributed free of charge.
d) This Resource Box must stay intact.

P.S

If your serious about investing in real estate and learning how to flip properties then check out the resources at Foreclosures.com.

Hans Anderson

Subscribe in a reader

Foreclosures tax sales are the product of homeowners who fail to meet their tax obligations and lose their homes to the government. The government often sells properties that it has acquired through tax foreclosures to people who can pay the taxes that are owed. They are sold in proceedings during a tax foreclosure sale (or tax deed sales). Government tax sales were created to recover the taxes that the original homeowner did not pay.

In selling these properties under tax foreclosure, the government offers the liens (the unpaid taxes, the interest for those amounts, and the selling costs involved) to interested investors in a public auction. In case there are many prospective buyers of these liens, the winner is awarded the properties in any of the following methods:

-Bid Down the Interest Method – The government fixes a maximum rate of return and the bidders have to stay within that rate limit specified. The investor accepting the lowest rate of return among the bidders is declared winner of the tax foreclosure property. In cases of ties on the bids, the impasse is resolved through a random or rotational method.

-Premium Method – In the premium method, an investor who is willing to pay the highest premium on the lien amount is declared the winning bidder. This method of selecting the winner in an auction is used and preferred in some parts of the country

-Rotational Selection Method – The investor listed first in the list of bidders gets the first offer of the liens in the rotational selection method in the auction. In case he declines, the offer is made to the investor next in the line and so on. The first bidder, who declined in the first round, is offered another lien only after an equal chance is given all potential investors that are included in the list.

-Random Selection Method – In this method in an auction, the potential investor gets selected through a random process usually done through the use of computers.

-Bid Down The Ownership Method – The lien in this method given to the bidder who buys the property at its lowest cost. If he buys it at 90% of the property cost, and in case of redemption of the lien by the original owner, this investor would only be eligible for 90% ownership and the remaining ownership of 10% would go to the original owner of the property in question.

Not all liens get sold right away in an auction and when this happens, the unsold liens remain in the hands of the government entity that conducted the auction. It could conduct another auction later. In the meantime that the liens are unsold, the unsold liens are called “struck” liens.

The last thing you want is to miss out on a good investment because you don’t understand the auction procedures. Make sure you fully understand the type of auction you are going to. If your new to investing you might want to consider joining a real estate investment club

Hans

Subscribe in a reader