Flipper · Westminster, SC · Member since 2012 · 10 posts · 1 vote
I have heard real estate investors talk about win/win deals for years. What do they mean by win/win? Most investors know that if we are working with a seller, unless they are motivated to sell, we are unable to have a win outcome for ourselves. We could create a win for the seller, but doing business that way would doom us to failure. Now, if the seller is motivated, many times we will be able to end with a win for ourselves, but if it isn't also a win for the seller, how many are satisfied with that? If a seller is "over the barrel", should we pay all we feel we can or as little as possible? We can always talk a good game and say that we always want win/win, but a true win-win negotiation is a negotiated outcome in which parties have reached an agreement that cannot be mutually improved upon. So let me ask this question. Do you really care if your deals are win/win?
Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
11y
If you gain a reputation as someone who deals fairly when buying and selling you may soon find yourself in the enviable position of having deals come to you instead of having to hunt them down all the time. It is much easier to do business this way.
in the deals i have done i tried to keep in mind what the seller needed to sell and give them what they need, it will work out good for both parties if they dont need to sell then you will end up paying to much
the key in my opinion is find motivated sellers that need to sell not want to sell
New Braunfels, TX · Member since 2015 · 13 posts · 8 votes
11y
We always try to make the deal good for both sides. You see, we want people to come back and buy many houses from us.
Once I had a house for sale for 55,000, and it could have sold for over 60,000. We had so many calls! But in the end we sold it for 55,000. Guess what? The buyer has come back and bought six more homes already.
Strongly I belieeve to make deal good for both sides. I want to make money with real estate long long time, not just for this year.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
11y
People are going to go where their ethics and moral compass lead them, what they may not understand is how their reputation is formed. Investors deal through Realtors, closing agents, appraisers, inspectors, lenders and others and they all talk to each other. Kill your reputation and kill your business! Yes, you need to deal fairly. All transactions have a winner, someone is always on top, how far on top makes a big difference and can determine how long you stay in business. Few deals in anything are done where the outcome is equal to both a buyer and seller, but that is the goal, that is where the bar really is set. :)
Flipper/Rehabber · Rochester, NY · Member since 2014 · 1k+ posts · 1k+ votes
11y
@Vincent Noe I think that is an excellent question and worth asking. We need to be careful that we aren't simply trying to soothe our conscience by calling deals a win-win.
I think @Mark Brogan has a good point. It is a win for the seller in the sense that it can give them what they need or want. A motivated seller wants to get rid of a property. I can help them do that. It is not a win for them in the sense that they are getting the best deal. I am pretty straight forward with sellers and explain that I have a profit motive, and that it has to work for me.
Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
11y
If you gain a reputation as someone who deals fairly when buying and selling you may soon find yourself in the enviable position of having deals come to you instead of having to hunt them down all the time. It is much easier to do business this way.
Flipper/Rehabber · Columbus, OH · Member since 2013 · 1k+ posts · 655 votes
11y
If it wasn't a win for them they wouldn't sign the contract. Like MQ says, we've never bought a house from someone who didn't agree to it. Does the situation dictate the price, absolutely. If they waited until the week before their house goes to auction then they are severely limiting the resources available to remedy that situation.
When you go to the CVS Pharmacy to pick up a prescription do you sometime pick up some laundry detergent on the way out even though it costs twice as much as at the grocery store? Heck yeah because it saves us a trip to the grocery store for one item. It is supply demand, we provide a service that some sellers need.
Atlanta, GA · Member since 2014 · 240 posts · 130 votes
11y
Josh here from Atlanta -- I'm a newer investor, and I am so glad to be learning from everyone on BP.
The feeling I have is that there are different types of 'wins', and a good sales price is just one of those wins. I imagine some sellers want / need to get out of a property so badly, that even if they accept a low offer, they will still walk away feeling relieved about the transaction. And that seems like win.
In my limited experience, I want everyone involved to walk away from the table feeling glad about the deal. I want everyone with whom I do business to feel as though they were treated fairly, and with respect. Though I need to make a living, I never want to make a killing, and I believe that too translates into a win for the other parties.
Good question. Thanks for getting the discussion rolling.
Flipper · Westminster, SC · Member since 2012 · 10 posts · 1 vote
11y
Thank you everyone that responded. Here is my 2cents.
I strive to follow the "golden rule" in every aspect of my life, whether it be business or pleasure. If, in doing so, I don't make as much money on each deal, that is fine. I am not doing this for money, although "a servant is worth his hire" and the more and better that I serve, the more and greater my reward.