Step 5 – The Magical 2 words to use to never lose a negotiation
I use this all the time when I deal with sellers.
It’s one of the strongest things you can do to use these 2 words.
What if they were just 2 words that would guarantee would never be rejected by a seller ever again?
Will it mean to you? How valuable would be to you?
If I asked you donate $1000 to a favorite charity for these 2 words to never be rejected by seller ever again, which you pay it?
Here are the 2 words…. “What if…”
Here’s why they are so valuable,
because they commit you to nothing
but commit the other side to everything.
So before you make this offer the seller has to tell you off the record so to speak that he or she would in fact say yes to that offer. It’s a way to feel them out, and not lose the deal.
It’s may be too simple for some people but it works.
Well Bob here’s a possible idea, you might hate it but what if I were to be able to make up these back payments and by your property and just take over the payments from here on out. I’m not sure if I’d be willing to do this or not just yet, but what if I were able to talk my business partner into doing this, is that something we should even talk about or probably not?
remember we’ve gone through the other 4 steps, and this “what if” step helps you understand if you’re on track or not.
If I’m talking about a subject to, wraparound mortgage, or a lease option assignment, I’ll use a “what if” like this…
“Bob and Susan we’ve gone through a lot of different ideas here today, we’ve looked at the cost to sell with an agent, with commissions, closing costs, sellers concessions, vacant house costs, and spruce up costs, we decided that relisting with an agent is not a good idea.
We’ve also looked at traditional rentals, where you hire a property manager for 7 – 10% of collected rent, and paying for maintenance, and that wasn’t the best idea but were open to looking at that.
And lastly we looked at seller financing, where you might be willing to help a buyer buy the property on terms, where you would accept a payment that would be very close or equal to your PITI payment, and do this for about 24 payments, and then whatever the mortgage balance was in 24 payments from now, would be paid off in full without any other further costs to you.
And just so I understand that last option look like the best option because you would net more money, am I reading that correctly?
So, I do want to ask you this one question,
“what if I could draft a very simple agreement, that would allow a payment to come to you for 24 months that is approximately your PITI payment, and you turn this property into an investment property, where you get some tax advantages from the IRS to do that, and about 24 months from now, the house would be sold, and then you would have your mortgage paid off in full, with no additional costs, no closing costs or realtor commissions…..what if I can get that done for you, can you see any other reason why we couldn’t go forward today and get a simple agreement signed today?”
Now if you know the steps before this,
the upfront agreement to avoid the me think it over,
discovering the motivation of the seller, and
decreasing the asking price,
this “what if step” is just a trial close, and unless you really haven’t done a good job with the 4 steps before, if this should be very easy, should be an easy close.
The next step from here is a letter of intent that I ask the seller to sign. We are going to sign this letter of intent without a notary present, and the sellers then make an appointment to sign a lease and an option at a title company or an attorney’s office with full notary witness of the lease and the option.