Their Price Your Terms

[Mark Tallent]

I have recently heard several established real estate investors mention this, but specifically what does that mean? I understand "their price" but the "your terms" is throwing me off. Is there really that much you can change besides interest and amortization schedule? Please let me know what you all think I a novice investor still.

[Ashley Childers]

There are many, many things, everything is negotiable. Sometimes by letting them 'win' by paying their price, they will concede to so much more than the extra price you're paying. The options really kick in when owner financing is on the table. Amount of down payment, rate, length of term, structure of payments, personal items included with the sale (could be furniture, could be a vehicle, goats haha, who knows?), closing timeframes, seller performed or funded repairs, closing costs, etc. You're only limited by your imagination. Early in 2015, I purchased a commercial property for $500,000, about $150,000 more than current market value. But by agreeing to pay that much more, not only did the seller owner finance $460,000 of the price, but I was able to negotiate the interest rate from 6% to ZERO. This is not a flip property, but a long term buy and hold where another business I own is the tenant. I will save well over $400,000 in interest over the life of the loan, and market value is coming close to catching up with my inflated purchase price. This is an extreme example of course, but it worked for my needs and goals