Tag-Archive for ◊ deals ◊

• Wednesday, January 27th, 2010

This is a great post by Jim Camp from Foreclosures.com explaining the mistakes investors should avoid during negotiations.

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. THINKING DECISIONS ARE MADE WITH INTELLECT.

Highly educated leadership and team members often think decisions are made with intellect.

Unfortunately it is the opposite. Decisions are made completely in an emotional arena of the brain.

Negotiating is about understanding human behavior — yours and your negotiation opponent’s — so you can navigate through emotions, clarify misunderstandings, articulate challenges, and help your negotiation opponent build a vision of his or her problem for which you, and you alone, offer the most optimal solution.

2. 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

3. PLANNING TO COMPROMISE AS A CONTINGENCY.

Planning that includes compromise or fall back positions is the worst way to prepare for a negotiation and leads directly to deep compromise and unnecessary concessions. When learning how to negotiate, it’s essential that you get over your fear of the word “No.”

Children are not afraid of “No.” In fact, children understand that “No” is not the end of a conversation, but the beginning of a negotiation! When a child says “No” or hears “No,” he or she knows instinctively that a back-and-forth negotiation will ensue.

The same is true in any business negotiation. Start by inviting your respected negotiation opponent to say
“No.” Tell him or her that you will not take “No” as a personal rejection, but as an honest decision that can be discussed and perhaps reversed.

4. MEETING WITH THE WRONG PEOPLE.

Meeting with the wrong people is a terrible problem that too often, allows important information to go inthe wrong hands and in time, will almost always lead to needless compromise.

By giving the other side information, you provide them an advantage and the time to better prepare for a meeting of value.

5. PUSHING TO CLOSE, CLOSE, CLOSE.

Too often teams are trained to drive for the “Yes” with verb-led questions and to close, close, close. This drives deep concessions as fear of loss of the deal looms because they think “No” means failure.

Examples of verb-led questions include, “Do you think we should bring Mary into the loop?”, “Is this the biggest issue facing us?”, and “Does it fit into your needs?” Instead, open your questions to get more than a “Yes” or “No” answer, and listen!

“What is the biggest issue facing us?”, “How does Mary fit into this?” and “How does it fit your needs?” will generate volumes of great information from your opponent that you can work with.

6. 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.

7. LETTING THE RFP PROCESS DRIVE THE NEGOTIATION.

Too often an RFP is accepted as truthful and all that is required to participate. This leads to an emotional roller coaster that eventually will produce concessions and compromise.

8. LACK OF VISION.

Teams are not trained to create vision that will drive full price decisions.

Every negotiation, whether it’s a phone call or a formal business negotiation meeting, needs a negotiation mission and purpose. Yours is to help your respected negotiation opponent see how your three or four top features will help him or her achieve key business goals.

9. BEING TOO NEEDY.

Emotions bog you down, cloud your ability to make clear negotiation decisions based on fact, and almost instantly give the advantage to the other side. Emotions are the number-one deal killer — and neediness is the worse culprit.

Your job at the negotiating table is to become a blank slate. You have no needs. You need food and water. You don’t need this raise, this sale, or this deal. Once you are clear about the difference between wants and needs, it will set you free.

10. NOT ADDRESSING THE ELEPHANT IN THE ROOM.

Identify problems standing in your way. Before the negotiation meeting, write down every problem you can think of that might come up, so you can bring them out into the open. Always address the elephant in the negotiating room.

When you can overcome these ten common problems, your will begin to see dramatic results in your negotiations.

To apply these negotiating techniques to successful wholesale foreclosure investing, in a hands-on training environment, read more at Seven-Steps to Mastering Foreclosures

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.

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• Saturday, October 17th, 2009

This a great article by by coach Daryl White explaining how to make your phone calls.

Making Your Calls Count
By Coach Daryl White – February 2009

Has this ever happened to you? You spend hours, maybe even days researching your leads to find phone numbers for neighbors, relatives and owners and then spend even more time going over in your head every possible call scenario so that you’re ready for them?

When the time comes to actually call owners you pick up the phone, palms sweating, stomach doing flip-flops and then, Oh My God, someone answers the phone (didn’t expect that to happen).

You make your “Alexis introduction” and the owner says “I’ve got it all taken care of”. You say “Great, I’m glad to hear that, I’ll call you back in a few weeks to see how things are going”. You hang up and about two seconds later you realize that you have absolutely no clue what’s going with that owner.

Talk about a wasted call.

Well this happened to me many times when I first started in this business. I would get so nervous when someone answered the phone that as soon as they said something that sounded like they truly did “take care of it”, I would quickly end the call.

Next I would see the same lead pop up on the ‘Auction List’ a few weeks later and wonder what happened? So I’d call the owner back but would never get an answer. So what did happen? What happened was that I failed to make my first call count. I did not find out everything I could while I had them on the phone.

When you get an owner on the phone your goal is to make the call count for both you and for them.

For you, you need to find out if it’s a lead you will continue to pursue or refer to another resource so you’re not wasting your time on non-deals. For them, you need to know if they are on the right path and if not, help them get them there so they can achieve a more positive outcome.

I accomplish this by asking the following four “qualifying questions”:

1. What happened?
2. What would you like to see happen?
3. What are you doing to make that happen?
4. What will you do if that doesn’t work out?

I call them “qualifying questions” because the answers to those questions will help you to quickly determine if it’s a possible deal for you or what other option(s) they should be pursuing.

There are eight basic options for an owner in default:
1. Forbearance
2. Loan Modification
3. Mortgage Refinancing
4. New Mortgage or Line Of Credit
5. Sale of the Home
6. Deed-In-Lieu of Foreclosure
7. Bankruptcy
8. Do Nothing and Lose the House to Foreclosure

However; an owner who has no income really only has one option – the sale of their home. Even in the case of bankruptcy, the court is unlikely to approve a payment plan if they have no income.

That is why it is important that you know how they got in default before you start discussing their options with them or recommending a solution. As Alexis would say that would be like prescribing medication to a patient before you know their illness.

The 2009 job unemployment predictions are in the millions so it’s very likely that the majority of owners in default you talk to this year will be unemployed. Many of them will either be stuck, not knowing what to do, or doing the wrong thing because no one is telling them the hard truth about their options.

That is where you come in. You are the “White Knight” who’s going to ask the tough questions, listen to what they say, and give them honest feedback and recommendations that will help get them unstuck and moving in the right direction. Just like Alexis taught me in Lab.

By following the steps above, every call you make will count and you won’t just be counting calls if you know what I mean. So get busy, get on the phone and get those deals coming in. Happy investing!

Daryl White
Lab Graduate & Investor
Coach & Lab Instructor

If you would like to learn more about investing in foreclosure click on the link below.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.

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• Saturday, October 03rd, 2009

Fatal Flaw #1

Newbies Don’t Know How Or Where To Find Great Opportunities For
Real Estate Deals.

For the first 12 months of my experience as a real estate
entrepreneur, I was a dismal failure. I spent a lot of time reading
books and listening to tapes about creative real estate strategies,
but I made no money at all.

Not a penny.

Not only did I fail to make money. But I was losing money… I had
more month at the end of the money (if you know what I mean).

That was painful beyond belief, but I brought it on myself because
I focused exclusively on being a master of real estate strategies,
rather than a master of finding people whose circumstances matched my knowledge.

But then, as if by magic, things began to happen for me. Deals
started to appear that I’d never seen before. Finding the fabled
“motivated seller” was suddenly much easier than in the past. And
that led to deals where I actually made real, spendable cash. It
was truly amazing!

What was the difference?

Instead of focusing on learning every detail of the technical
strategies of creative real estate investing, I began to focus on
finding great deals through some simple marketing strategies.
Marketing is the process of reducing down the entire population of
the world into a small subset of people with whom you can do
business.

Marketing requires you to answer these questions:

1. Who is your “ideal” prospect? If you’re trying to find homes to
buy, your ideal prospect would have certain characteristics, such
as: * The prospect is a home owner, * The prospect is “motivated” to sell their property, * The home is in a certain geographic area, * The home is in a certain price range, * The home is in (excellent, good, fair, poor) condition.

There are a lot more variables to fully defining your ideal
prospect, and you might even have different ideal prospects
depending on which strategies you’re using. But the point is
simple: You must know who you want to do business with.

Example – “My ideal prospect is a home owner who is motivated to
sell their property as soon as possible. The home should be in
average or better condition and should be located in the Greater
Vancouver Area. The home’s value should be in the range of $400,000 to $595,000.”

2. What are you going to offer to your prospect that will motivate
him/her to do business with you?

Another way to state this is: What is your “message”? What is the
reason you’ll offer for someone to do business with you?

Your message must be simple and should convey a very clear benefit to your prospect. Some of the most commonly used "messages" among real estate entrepreneurs are: * I Buy Houses, * Sell Your House in X Days, * Fast Cash For Your Home, * Stop Foreclosure, * Cash For Homes.

Important Note: These are all very common marketing messages, but not all of them are particularly good messages.

Here’s a Better Example – “I offer immediate debt relief to home
owners by buying houses in 7 days or less.”

3. How will you physically communicate your message to your ideal
prospect?

Will you use:* Newspaper ads, * Road-side signs, * Cold Calling,* Direct Mail, * The Internet, * T.V. commercials .

The list of available communications media is literally endless.
Your job is to use a few (not just one!) of those types of media to
communicate your message to your ideal prospect.

To summarize – Marketing means that you’re communicating a
desirable message to a suitable prospect, at a time when that
prospect needs what you’re offering.

Why is marketing so important? Isn’t it true that all home-buying strategies are totally worthless unless you’ve got a relationship with a home owner who is willing to sell using your strategy?

And isn’t it true that unless you have a qualified buyer, it
doesn’t matter if you know 70 different ways to sell a house

- you still won’t sell your house? Of course that’s true.

That’s why marketing is so important… and why most new real
estate investors fail so miserably. Instead of focusing on the
people that they can help, they focus on the technical strategies
that they’ll use. And here’s the hard truth of the matter:
Nobody cares about how great your strategies are. All that people
care about is what you can do to help them.

So your job is to:

1. Identify your ideal prospect

2. Create an offer that motivates your prospect to do business with you.

3. Make your prospect aware of your offer.

To Your Success!

Aiden Win

Mr. Foreclosure

P.S. One of the easiest ways to get the most profitable real estate
deals is in from my pre-foreclosure listings. You won’t find as
many motivated sellers as concentrated in one single list than
from what you’ll get when you sign up for the Foreclosure Insider’s
Club. And remember, I’m throwing in a TON of bonuses worth Over $1400!

Start Today

Enroll In Foreclosure Insiders Club Today

ForeclosuresTaxSales.com

Hans Anderson

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