Two Truths About Closing Deals
Obviously everything we do as investors is geared towards closing deals. It’s obvious because if a deal doesn’t close, the money isn’t made.
So we’ve got to close deals right?
But here’s one insight that, if you pay attention, will save you much grief.
When it comes to closing a deal there’s no magic bullet, there’s no perfect script. No deal is ever the same because, in real estate, you’re dancing with people, and everybody is unique.
So the two truths that you must understand when you enter into negotiations are these:
1. Not every prospect is going to result in a deal.
In fact most properties under negotiations won’t turn into deals. So accept it, and don’t make the mistake of trying to turn a jalopy into a Ferrari. It’s not going to happen; you will lose.
2. If the seller is not motivated enough, it’s not a deal.
The seller’s motivation is the one thing that will make or break your deal. If they’re not motivated, you’re paying full price, and paying full price is not recommended in this game (if your entire investment strategy depends on appreciation, you’re gambling- don’t do that).
So, if there’s no motivation, there’s no deal. It’s simple, it’s straightforward, and it’s the truth.
When you understand and accept the fact that most prospects will not be deals, and that every deal is a directly tied to the seller’s motivation, you’ll save yourself a lot of future frustration.