How to Negotiate Real Estate Deals
Today let's talk about negotiating appliance purchases for your real estate deals.
So I found this guy on Facebook Marketplace selling laundry appliance sets and washer dryer sets.
I don't know how sketchy it is, but apparently he has a warehouse, or a shop, or something with multiple different sets and stuff.
So if we can go get sets from there for cheaper and they’re quality, not just cheap, then that would be good.
But he does say that they all come with a warranty.
Always walk in knowing your "walk away price"
One tip I have for you guys is to always walk in knowing your walk away price.
If I can get it under this, I'll buy it and if I can't I'll walk away.
Because it's just going to make you a stronger negotiator and it's going to help you stick to your budget.
L: Hello, how are you?
A: Good.
L: I'm here for Adam.
A: Yes.
L: Is that you? I'm Lili, nice to meet you. We were talking on Facebook.
A: Nice to meet you. What were you looking for?
L: I'm looking for some appliances. We are renovators, that's why we're filming. We have a Youtube channel, if you don't mind. But I'm looking mainly for stackable units. I need at least one stackable unit and I need another unit. Like a pair, that could also be side by side.
All right so if this one's $675 and that one is $675, that's $1350. I want to get out of here for like, what's my walk away price? About $1200.
L: Do you do do a military discount?
A: What are you getting?
L: I'll get a stackable.
A: Okay.
And this set. $1275?
A: Yeah, I could probably do $1225.
L: Can you do $1200 even?
A: $1225.
L: What if I get something else? Drop me to 1200 for this, and then I'll take something else off your hands?
A: Okay what do you want?
L: Let's see. How much of a difference between this and that set in terms of durabilty?
A: Well this'll last you 30 years, 40 years.
L: How long does that one last me?
A: 15.
L: I don't need 30 years, somebody else will be in charge of this business in 30 years. Can you get me out the door for $1200 if I promise to be back on the fifth and buy a bunch more from you?
A: You have cash right?
L: No but I can bring you cash in a couple of hours.
A: I think we're at $1275. Yup, we're all good.
L: All right, cool.
Lesson: Never split the difference
I'm glad we listened to that book “Never split the difference.”
That was a good one.
All right, I'm really happy about that.
So why was $1,200 my walk away price?
So, I have this cost estimator tool/database.
And I know that the front load washer dryer the set brand new that I get from this other outlet cost $679 each.
So that's $1,358 each set. Times two, that would be $2,716 if I was to get those brand new.
And that doesn't mean I'm always gonna go there and buy them.
It's just in my head as the price, and $1,200 I just came up with that.
I was just like$ 2,700, at least half of that, so $1,200.
And because I use that $2,700 while budgeting, now we're under budget by $1,500.
Like, we just saved $1,500 off the budget.
So I try to use the most expensive option for the budget, and then try to get under that so that I know anything I get under is going to be a win.
START YOUR REAL ESTATE INVESTING JOURNEY TODAY!
So, now that you've gotten an intro to negotiating, are you ready to start?
If so, you can use my Free Resource Pack to help get your real estate investing journey off the ground. It includes:
- My Offer Sheet Template
- My Phone Scripts for Calling Real Estate Agents
- The Wholesaling Deal Tracker
So what are you waiting for?
Start your real estate investing journey towards financial freedom today!
