Real Estate Investing Training- the ability to negotiate will make you more money then anything else in real estate. I’m this video I show you how to Negotiate.
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All right. Hello. Hello. Hello everybody.Hope everyone’s doing well. We got some
Cool stuff coming up for you guys today. We are going to talk about negotiations by far. The most impactful thing you could do in real estate investing is learn how to negotiate. There’s nothing that will make you money. More money, quicker, money, faster money, easier money than negotiations. It’s not getting your contractor to do things for $5,000 cheaper. It’s not getting your closing attorney, uh, to, uh, uh, it’s not getting your closing attorney to, you know, do a cheap, good closing costs. If you can learn how to negotiate, you are going to be very, very successful as a real estate investor. So we are going to be talking negotiations this morning. We’re glad you guys are here. Very, very excited. We got the social media world out here. We got the zoom world here and Julie and I are going to rock it out here in a minute. Let’s let’s wait. Everybody can what’s up, Bruce? How you, how are you buddy? Um, I haven’t talked to you forever. Um, all right, Let me move this over here. Boom, boom, boom.
Set up. But we are going to be rocking it out, talking negotiations today. And in negotiations, if you could learn how to negotiate in real estate, you are, you know, you can’t say just because you had the logo sheet, great, you’re gonna be successful, but I could tell you if you learn how to negotiate successfully, there’s a very good chance that you’re on your way to success. Because when you’re negotiating successfully, you’re getting deals. You’re better getting better, valuable. You’re getting more valuable deals. You’re getting them cheaper than the sellers are asking for. So the art of negotiations I will tell you is the, um, it is, it is like the, I believe it is the most impactful thing that you could do, uh, as far as being a real estate investor. And so I’m going to lay out here in just a second, how I have negotiated literally millions and millions of dollars worth of real estate deals over my last couple of decades in this business.
I’m going to lay out what I have done to do that. Um, what’s up Christina? What’s up Colby. Uh, what’s up Tanya what’s, uh, Darren, man. We’ve got a lot of people here. What’s up Mareek and Nova what’s up Marlin. What’s up? Uh, sometimes it’s hard. When on social media people’s names, don’t always come up with their account names. So I’m probably mispronouncing all this. Um, anyway, guys, I am excited to share with you a topic that’s near and dear to my heart. You know, I don’t teach to this day. I don’t teach a ton of real estate. I would, you know, the teen teaches a Julia is incredible at contacting sellers. Uh, what’s up Prashant. Um, we got, we, uh, we, we, we, you, we have back office ladies that teach back office, but in negotiations, it’s so near and dear to my heart.
This is the one piece of real estate that to this day, I still teach. I still fully believe that I’m very good at teaching it. So we’re gonna, we’re gonna, uh, we’re gonna lay it out here and we’re going to talk about how you could also become a master negotiator. All right, well, let’s get started again. My name is Peter Vekselman. For those of you that may not know me on the other side here is Julie Muse, Julie and I have been, uh, I’ve been actually investing for a little over a decade more than she was, but I’ve been investing for a couple of decades. She’s about a decade in, uh, I’ve done, you know, thousands of real estate deals. We, uh, we do real estate deals in a very unusual way. A hundred percent of our real estate deals come as a result of our partners.
Okay. We partner with people literally across the United States and we do real estate deals with him, the reason Julie and I still come on and teach real estate. See, before when we were, when I was doing my own deals and we were doing our own deals, there was really no need to teach people. Cause we were, we were teaching, you know, I mean, let’s face it when you’re busy doing something, you’re busy doing something, but then we changed our model and we said, why don’t we start partnering, partnering with everyday people all across the United States and let’s start teaching them how to do the real estate business. Let’s start supporting them in the real estate business. Let’s coach them, let’s generate leads. Let’s give them all the capital they need. And we’ll basically help them facilitate closings right in their own home towns. And then as a result, let’s partner with them and split the profits.
And that is what our partner driven model is all about today. We’re going to teach you, and I’m going to spend some time, a little time with you guys teaching how to negotiate real estate, they deals. And then when I’m done, um, for those of you that hold on all the way through the process, um, we’re going to share with you how actually you could take advantage and become our partner literally today, how you could utilize our money, how you could utilize our leads, how you could Alize everything that we have here going and start doing real estate deals with us very, very quickly. All right. So let’s get into negotiations and negotiations guys. One thing I tell about in negotiations is that right? It’s not a, uh, a by chance kind of thing. It’s not just, uh, uh, by accident kind of thing. The Gaucher patients actually is a process that you walk through and you take people through.
And, and for those of you that understand the process to take your sellers through can become absolutely brilliant negotiators. Okay. Um, by the way, when, if you’re a partner of ours, um, and or if you’re going to become a partner of ours, you’re going to see, I really expand upon negotiations. Matter of fact, we had a couple of hundred of our partners here in Atlanta, couple of weeks ago, and I spent almost two hours. I’m going to spend just a couple of minutes talking to you guys about, and that’s another value out of actually being a partner of ours is that, you know, you don’t just kind of get the top level training. You actually get like the meat of what it is, but I will tell you in negotiations, like I said, it is a process. It doesn’t change. Like a lot of times people think, well, negotiations is based upon kind of how the day goes or how the meeting goes.
Uh, or negotiations is just like, uh, who’s better at it. Or negotiations is just like, well, how motivated is the seller? And I always tell people that’s not true. Negotiations is a literally a technical process that you go through that you walk your seller through. And if you walk them through correctly, the way I’m going to lay it out for you, there is no question. You’re going to have some kind of a discount. Okay? If you walk people, if you walk sellers through the process that I’m about ready to share with you, there is no question that you are going to have some kind of a discount from the sales price. The only question is this, the more you do this, the better you do this, the more often you practice this, the better of a discount you’re going to get, right. And let’s face it when it comes to doing real estate deals or any kind of negotiations, it’s deeper to discount the better of a chance that the deal’s going to take place.
Right? All right. So let’s get into the steps that I walked through, that I take all my sellers through when I’m negotiating real estate deals. Step number one is the, like the logical step. And that is this. Remember this, you’re always going to be a lot more effective. You’re always going to be a lot more efficient as a negotiator when you are in person with the seller, right? So the first step when you’re negotiating a real estate deal is do whatever you can to get in front of that seller. So when I’m talking to seller on a phone, initial contact, you know, there’ll be some pleasantries going on. I’ll find out what the situation is. I’ll get some information about the house and then I’m going to do everything I can to go see that seller for one or a basic reason. When you’re negotiating with somebody, you are going to be a lot more effective when you’re in person with that person, with that individual.
Then when you’re far away, right, you’re going to be a lot more effective when you’re in person than when you’re on a phone, you’re going to be a lot more effective than, you know, when you’re emailing them when you’re texting them and all this now understand, I do understand you cannot always be in person with that individual, right? Things come up. Sometimes situations come up. Sometimes it’s an oddest state owner. You know, sometimes it’s an absentee owner. I get it. Then like, if I have an absentee owner, I’m doing kind of what I’m doing right here, right? I’m getting on zoom, I’m contacting them. And the reason, the reason guys, you want to be with somebody and the face-to-face, or at least have be able to see their face when negotiating is very simple, you want to be able to see their emotion through the process because negotiations is a very emotional business.
And a lot of times it’s not what they say. It’s how they appear. That’ll give it everything you need to know about seller. Okay. Next step. When you’re negotiating, one of the key components of negotiations is you want to do everything you can in your power to make sure that the seller gives you the price first. So I never start out negotiations by offering the first. I always start out in negotiations by asking the seller, well, how much do you want? And I will go. I will ask the seller six times that question, meaning, meaning if a seller comes back to me and says, well, Pete, I don’t know how much you want. You contacted me. Or, you know, you you’re calling me or you sent me this direct mail. I’ll say something like, well, I know, but you know, in a perfect case scenario, how much do you want?
Well, Pete, again, I don’t know. You know, that’s, it’s on you. You got to tell me I get it, but perfect case scenario, what would you take for this property? So I’m going to go back and forth six times, six times to do whatever I can to get the sales price. Now I will also tell you, it’s not a matter of just going back to six times. It’s a matter of how you deliver it, right? You have to deliver it with authority. You have to deliver it. Almost an assumptive attitude. That yes, it is the seller’s responsibility. It is the seller’s responsibility to get you the price. Um, first, okay. Now when you get that price, you’re going to go into the step two negotiations and step two negotiations is what I call getting the seller to negotiate against themselves, right? It is actually possible.
Believe it or not to have the seller negotiate literally against themselves. So when they give me a price, let’s say the seller says, well, gosh, Pete, I’ll take a, I’ll take a hundred thousand. I’m not going to make a counter offer. Based upon that, what I’m going to say is this, I’m going to say something like this. I’m going to say, well, um, is that the cheapest you’ll take? And then I’ll shut up. And a lot of times the seller will go down automatically. Well, I guess the cheapest I can go to 97, 98, 95 T what, what if I close as quickly as possible? Would that get you to go lower? A lot of times the seller will go. I will keep on asking questions. As long as the sellers coming down, I’m kinda constantly ask more and more questions. So is that the, is that the lowest you’ll take?
What if I close quicker? What if I pay cash? What if I don’t ask you to fix anything? You know, so as long as the seller will keep on going down, I am going to constantly, constantly ask them to come down lower and lower and lower. And that’s, this step is known as negotiations against themselves. And guys you’ll be shocked. How many times I’ve had sellers, literally negotiate themselves and, you know, go down five, 10, 20% off their asking price without me ever making an offer. Now, once we come to a conclusion that this is, you know, that the seller’s not going down anymore. Okay. Once we come to the conclusion that the seller, uh, is not going down a anymore, then it’s going to be my turn to offer the price. Now, this is very important. The price I’m going to offer, okay, that price I’m going to offer at this point is what I call a low-ball offer.
So let’s say the sellers come down from a hundred to 95,000. I don’t even care how good deal or how bad of a deal the 95,000 is. But I do know I’m going to low ball automatically. So if he’s at 95, I’m probably going to come down to around $50,000. Now, there is a reason that at this point I am coming down to, uh, uh, that a low ball offer. And by the way, when I make that offer, this is something else you have to remember out in negotiations. Remember when you’re making that offer to the next step is be quiet. You never want to make an offer. And then talk, because when you talk, after making an offer to a seller, what you’re doing is you’re basically trying to it’s coming across. Like you’re trying to justify what you’re saying. And when you’re trying to justify what you’re saying, it is basically telling the seller you yourself don’t even believe in that process, in this price, right?
So I’m going to make a low-ball offer. I’m going to come in around 45 to $50,000, and then I’m going to shut up and I’m going to wait for the seller to say something. Now, the reason I’m making a low-ball offer is not because I am expecting that price to be expected, except it very rarely, very rarely will that price be accepted. The reason, the reason I’m making a low-ball offer is because I want to get the emotion out of the seller. I want to see how their seller responds to what I’m going to tell. Right? So for instance, and there’s really two emotional sides here. One is the seller flips out, Pete, how dare you, that’s insulting. I never take, uh, such a low ball offer, right? If the seller responds in that kind of a negative way, right? It starts freaking out on me, starts basically accusing me.
What’s me out of the house. Then all that tells me, it tells me I’m way off. Right? That’s all that tells me that tells me, okay. It tells me I’m way off the mark. And this is not a deal that we’re going to be able to get done. Right. On the other hand, on the other hand, let’s say at this point, let’s say at this point, the seller says something along the lines of like, he starts him and howling, or he starts saying, well, gosh, I don’t know if I could pay this. You know, if, if, if, if you know, I didn’t, I realize you have to come in to slow or, oh man, I’d better ask my wife about it. Those are all great, very, very positive statements. Okay. Those are all very, very positive statements. And what that tells me is that tells me I’m in the ballpark, right?
That tells me I’m in the ballpark. Might not be able to get it at this price, but that does tell me I’m in the ballpark of where ultimately, ultimately I probably need to add one to, uh, end up. Okay. So after why go low ball offer, then the next statement, the next statement is this. I’m going to find out, I’m going to find out, um, from the seller, I’m going to tell the seller what the next, okay. I’m going to tell the seller what the next step is. And so I’m going to ask them, you know, I come in at 45, let’s say, he’s like, no way, we’re not going to do this. You know, we’re totally out of the ballpark on that. Then what I’m going to do is I am going to, um, uh, uh, uh, I am going to, to tell them, okay, what’s your counter to this.
Okay. What is your counter? That is exactly what I’m going to be saying. I’m going to come in and I’m going to tell the, so I’m basically telling the seller, okay, well, you don’t accept my price. What’s your price. And the reason I’m going to tell them, give me, uh, give me a counter is because you’ll be shocked. Okay. You’ll be shocked. How many people at that point think the negotiations is over well, he’s in 95. I’m at 45. No deal. So I’m walking away. No, the negotiations at that point has actually only just begun. Okay. Negotiations at that point has only just begun. And so I’m going to tell him, okay, what is exactly your next counter offer to my price? And let’s say he goes down a little bit. And what I’m going to do is I’m going to go back and forth with this seller.
You know, he’s going to make an offer. I’m going to make an offer. He’s gonna make an offer. And I’m going to go back and forth for as long, as long as I have to. Okay. Uh, I’m going to go back and forth as long as I have to, until we come to a dead end. Right? So let’s say I go up to 60. And by the way, when you’re negotiating, make sure you’re going up and small, small increments, right? You don’t want to go up and large increments. You want to go up and like maybe 2000 at a time, maybe 3000 at a time, but go up in small, small increments. Okay. So we’re going to go back and forth. And let’s say once the seller does not go down any further, right. Once he tells me three times in a row, you know, let’s say, says 85.
And then I come up a little bit. He says 85. I come up a little bit. He’s like Pete. I said 85. Once. I know, I know that we are at a standstill then, um, then a couple of things may happen if we’re miles apart. Okay. If we’re miles apart, way, way, way apart then. And, um, I am, you know, we’re going to just back away and we’re going to put that into the follow-up mode. But if I’m within 10 to 15% of where I ultimately need to be, right, if I’m in 10, 15% of where I ultimately need to be, I’m actually going to put that property under contract. Right? Because remember negotiations is a process and it’s could be a very lengthy process. Right. But it is a process. So if I’m in the ballpark, I’m going to put that property under contract, knowing, knowing that I will still have to do some renegotiating down the road.
Right. And so either walk away or we’re putting it under pro under contract, because we’re within 10 to 15, maybe even 20% where we need to be. I’m also going to start getting my seller prepared at that point that we’re going to be doing some renegotiations. And the way I do that is usually I say, listen, I know the property probably needs some work. Give me some highlights of the things I need to fix. Right? Give me, uh, give me some highlights of things I need that I’ll probably need to fix. You know, I’m going to get my guys in here anywhere and all the time, the seller that he’s going to kind of rattle off, okay, this is not working. This is not working perfectly. Perfect. Perfect. Perfect. And then I’m going to actually use that a couple of days later, as a reason, as a reason why I’m going to actually renegotiate the deal.
Because in a couple of days, I’m going to recontact that seller, right? In a couple of days, I’m going to recontact that seller. And I’m going to literally tell him, listen, you know, Mr. Seller, you were right. You know, we need a new air conditioning system. You need a new roof, you know, all the things that you know, he and I discussed, and I’m going to basically, listen, I’m going to say, listen, let’s just do this. I’m going to pay for half of that. Okay. Wasn’t expecting, but I will pay for half of it. Can you help me out and pick up the other half? Okay. Very simple. I’m going to pick up half of it. Can you help me out and pay for other half? And that is my next negotiation process. Okay. Um, you know, get him the ability to come down, uh, get him the ability to, uh, uh, um, give him the ability to hopefully to come down even further.
Now let’s say it’s still not a deal. Okay. I’m going to use one more strategy. One more technique for negotiations is that, is this. If I’m still not in the ballpark or where I need to be, then I am going to just show my numbers. I’m gonna say, listen, I’m, I’m, uh, I’m an investor. I love your property. But obviously it’s not for me to live in strictly to, to, to make some money on it. I work off a spreadsheet. I’ll show him my spreadsheet. I tell him, look, I take what it’s worth, multiply times 0.6, subtract repairs. And you know, and I basically, literally what I call is I exposed my whole formula to him, show him exactly what needs to be done, and then try to get one more price drop. And again, during any part of this process, if the deal makes sense, then we go into putting a contract together.
But let’s say again, we’re not where we want to be. Okay. Let’s say again. So we’ve now done, you know, five or six different stepping stones to get the deal down as low as possible. Um, and let’s say you are still not where you want to be. So then, then you’re going to walk away from that negotiations. And then you’re going to do what ultimately going to make you the most money. You’re going to follow up with that seller. You’re going to follow up with them on a monthly basis. I’m going to touch base. And I’m going to see if anything’s changed in their lives. Because I can tell you, when you go up in the follow-up mode, you have the most powerful tool of negotiations working for you. And that is the tool of time, right? Because the reason people offer discounts on their, on their deals is because things happen, right?
They get divorces, they get sick, they get job losses, kids, upsize, downsize, all that stuff. So then I’m just literally letting time take its toll take, you know, letting time work for me. I’m just making sure I follow up. But remember this, when it comes to negotiations, when it comes to negotiations, the most powerful tool is the followup tool, because I know if I have 20 or 30 or 50 or 200 people I’m following up with on a monthly basis. I know at the point in time, number simply take over some numbers simply take over. And it’s just a matter of time before some of these people start going certain issues, certain going through certain issues in these lives, in their lives. And these issues themselves will create the opportunity for me to do the deal. So guys in negotiations is an art form. It is to be practiced.
It is to be done as much as possible. I suggest you contact sellers for no other reason that go through the negotiation process. Okay? I suggest you sometimes, even in the beginning, when you realize it might not be a deal, go through this process so you can get better and better. But in negotiations is by far the most powerful tool that you could have utilized in the real estate investing business to make money. Now, having said that, having said this, um, we did a very, very, very top heavy, very top heavy overview of this. For those of you that are my partners already, you need to get inside the university where I actually spent an hour or two really dissecting the power of this. And I think Julie’s still here with us. Um, what I want to do, cause I know a number of you guys want to figure out I to join our partnership program. So Julie’s going to, I’m going to peel off for a second. Julie, kind of bring it to an end on social media. If you can tell people what, what is the value of being a partner? Why are we partnering and what it takes to become a partner?
Absolutely. Peter, thank you so much. Well, when you partner With us here, all right guys, well, that’s that’s negotiations and this is how I do it. But guys, I’m looking for more partners to do real estate deals with, right? If you’re anywhere in United States, if you want to do some real estate deals together, I have the expertise. I have all the leads right in your market. I got the back office to help us close these deals. And I got all the capital for us to close these deals with, if you want a partner, D M me the word partner. If you want a partner, do some real estate deals, DM the word partner I’ll touch base. And before, you know, it could be on our way doing some deals together. Thanks guys.