Creating more competitive offers

[Madison Balter]

I’m having trouble being competitive with other real estate investors who have all cash. I’m trying to look more competitive so my offers will be excepted. Has anyone ever written a deal that says that they will pay the sellers closing costs in order to be more competitive? Or is that not an option? Any ideas from experienced real estate investors? Thanks!

[Don Konipol]

@Madison Balter

It’s not as easy for most people to have great success speaking directly with the seller. The ones that are successful are able to make the seller very comfortable around them, are able to emit sincerity, compassion and empathy, and most important trust. Qualities that also make some individuals sales elite.

While the majority of people can improve these skills, at least enough to get a few deals, many will just not like to do or be comfortable doing the seller empathy.

I, for instance, much prefer a negotiation between two knowledgeable business people, so I stick to commercial property. While there is still some emotional drama, and some unsophisticated owners, overall the dealmaking is much more on an unemotional, numbers oriented affair.

When I negotiated both commercial and residential properties, commercial properties represented 75% of my profits, yet residential was 90% of my problems!

Problem is, it takes much more time, more experience and more education, more money to successfully play in the commercial arena.

In residential, although there are ways other than direct seller approach, it seems the most profitable transaction will occur when you eliminate the middleman. After 40 years investing and lending on commercial properties, I think having the middleman often results in a better deal - if you know how to handle him.