Epic Real Estate Investing - How to Always WIN a Real Estate Negotiation | 1111

Episode Date: December 31, 2020

In today’s episode, Matt reveals how to negotiate a real estate deal and WIN, even if you lose! The key is to keep in mind the 3 OPTIONS every seller has when negotiating a real estate deal. The beauty is that no matter which option the seller chooses, you can get financial compensation! Tune in and learn these 3 options so you can put a deal under contract, ALWAYS! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Yo. I'm not sure for what you came for. To blow you smoke up your ass seminars is next door. Lying your tips up, man, just like a next door. All you're winning the wanting, yo, that's what we check for. I'm building piles of cash, create cash flow. Epic real estate investment I make the cash growth.

When I can tell you ain't work this hard at all. Tell people you work hard, you ain't working hard at all. Go deep with your investment. You're for going wide. Too cold for you. Yo, you need to go inside. It's not a money problem. It's an idea of problem.

Epic real estate, investment, man, that we can solve them. Scared money, don't make money. Passing income, cash flow, yo, how you create money. Savers and losers. Open your eyes and see him. Matt Derryall creating your financial freedom. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow.

Hey there, Epic Investors. It's Matt Terrio from Epic Real Estate. This is where we show people how to invest in real estate with an emphasis on retiring early. This is the official epic real estate investing show theme song. Hoping to have a new one for this year. This one was recorded last year or two years ago by a former artist of mine that was on my record label

when I was in the music biz, Mr. Michael Myers. And you can catch him on iTunes if you like his Steeze at M-Y-K-I-L. That's how he spells Michael and then Myers. And then I got it. a new one. I heard it. I caught the demo. So hopefully I'll have it to you by the, by the new year. And today is actually New Year's Eve, so it's not official yet. So, uh, happy new year to you. Let's pray 2021 is far better than 2020. Doesn't seem like it would take much to make that so as just about anything would be an improvement. Um,

the legends challenge. I've been talking about that here and there. And for those of you that don't know, it's a 10 day challenge to, uh, help you get a contract. signed, at least one deal signed. It should be ready for you by the time you hear this. So if you'd like to get a signed contract within 10 days of the month of January to put you in money position, to put you in the black right away. You're invited to join me in a small group of investors to get down and dirty and do some work together to start the new year off with the bang.

Go to the legendschallenge.com for the details. The legends challenge.com for the details. No news today as I recorded this about a week in advance and who knows what's going to happen between Christmas and New Year's. Hopefully nothing but peace and joy for you and your family. I pulled today's episode straight from the Legends Challenge, coincidentally, to give you a taste as this is where the money is made. This is like the greatest gift that I think I could give you when it comes to real estate investing is how to convert a lead into a contract. right? Because the leads are easy, as you'll find in the Legends challenge, that the leads are really, really easy to generate. And you'll find also finding the money, that ain't a challenge.

That is easy as well. But it's getting the property under contract. That's where the skill is at. That's where the money-making skill is at. And that's just, you know, they say you make your money when you buy real estate. You've probably heard that before. And technically, once you of a signed contract, you have bought that property. Contingent on your inspection, of course, but that's how it works. And so that's where the money's made. So I want to pull this to share this with you a different approach of how you can win regardless of what happens, even if you think you lost.

All righty. So enjoy. And I'll see you next week in a new year. Back to our normal schedule and our show. If you'd like to know how to negotiate, negotiate a real estate deal and win, even if you lose, I think you're really going to like this. Let's go. Hi, I'm Matt Terrio, CEO of Epic Real Estate.

This is where we show people how to invest in real estate with an emphasis on retiring early. And I want to show you how to negotiate a real estate deal so you can get a little closer to your financial freedom with every seller you talk to. Yes, every seller. This is less than six of a seven-part series, by the way. Now, the first step to making this happen for yourself is to be super clear about all of the seller's options. If you didn't know, there are three options the seller has when they're negotiating with

you. And if you don't know all three, you are most assuredly leaving money on the table every day. But it's all good. We're going to fix that for you. Option one, this is the retail option. And it's where the seller can get full market value for the sale of their property. And understandably, this is what almost every seller wants, as they should. But to get full market value for their property, there's some work for the seller to do,

as well as some costs to take on. You see, the seller is going to have to inspect their house, and then they're going to have to do some repairs. They're going to need to hire a realtor. They'll have to give the realtor time to do their marketing. The realtor is going to have to hold some open houses in order to find the right buyer who's willing to pay the seller's price and follow through with the sale all the way to the end, meaning the buyer won't change their mind, and the property will meet the lender's criteria,

and appraisal and the underwriting make sure that gets approved and then the loan has to actually get funded and then of course the seller pays the realtor's commission stay to the end and i'll show you how you win with this option even if you're not a realtor but that's option one the retail option and it's how most properties are sold 95% to be exact now option two this is the investor option where the seller will not have to do any repairs there'll be no marketing of the property there's no open housing There's no loan contingencies because the investor is going to be paying cash, so there is no loan. There will be no commissions and the seller will get their money from the sale much faster, like in a few weeks rather than a few months.

The investor will take care of all of this, but the seller will have to accept a price below market value. That's the exchange. If the investor is going to do all of the work and take the time and assume all of the property and market risks, the investor is compensated to the market. is compensated through a discounted price. This is the offer we prefer the seller to take, of course. But it's not easy.

On a scale of 1 to 10, 1 being super difficult, 10 being super easy, how would you rate your ability to get sellers to accept your investor offer? One, you struggle, 10, you got this. Now, there is another option most sellers don't consider, or even know about. In fact, most investors don't know about this either, but now you will. Option number three, this is the co-op option. where the seller still will not have to do any repairs, there will still be no marketing of the property,

there will be no open houses, no loan contingencies, there will be no commissions, the investor will still take care of everything for the seller, and even get a higher price for the seller, and sometimes still full price, if the seller is willing to take some money now and the rest later. Those are the three options, and you should present them every time that you reach a sticking point

with the seller, and it doesn't appear that the two of you are going to, to come to a mutual agreement. Mr. Seller, whether we work together or not, you really only have three options to sell your house. Would you like to know what they are? If the seller says yes and they almost always do, then you run them down for the seller and then ask, which one makes the most sense for you? The retail option, the investor option, or the co-op option. Now, it doesn't matter which one they choose because you will still win. And as promised, I'll break it down how that works. If the seller chooses option one, you can still

win if they choose to work with a realtor I want you to offer on the spot to make an introduction to a realtor or even better a few realtors and if you have a real estate license you can collect a referral fee for making this introduction and I strongly encourage you to not try to take the listing yourself don't do that it seems like it would be an easy transition right but it rarely works out and that's another conversation for another time just refer to another realtor collect your referral fee and then spend your time finding your next deal. Now, if you do not have a real estate license, you can still win. And in some states, financially

even. This is exactly what I've been waiting for. This is exactly, I don't mean to sound like Kat Williams, but this is exactly what I've been waiting for. It's important to understand that there are state and federal regulations to comply with, but it's absolutely doable. Now, I'm not an attorney, obviously, so I'm going to defer to your own legal counsel. I want you to talk to your attorney about this now when you ask how this is possible in your market I want you to ask like this under what circumstances can a licensee compensate a non-licency for a referral of business now under most circumstances just the use of referral fee is gonna throw up a bunch of red flags for everybody involved and

quickly put an end to your financial compensation but technically it won't kill every possibility now some helpful hints to research in your market are which terms to use. You know, instead of using referral fee, run the terms, finder's fee, or marketing fee or bird dog fee by your attorney. That may be enough to create the opening that you need to stay on the right side of the law.

Now, further fine print for your attorney to search for is the type of property that's the subject of the transaction. You know, is it a single family property, is it a commercial property or is it land? That can make the difference. The type of buyer, such as a resident buyer or an investor buyer, that can make a difference. The type of money being used,

in the transaction? Is the buyer using a federally insured loan? Are they using hard money? Private money? Are they using cash? Because all of that can make a big difference. And whether the compensation is a one-time fee or a recurring fee, and whether or not the referral fee is dependent on a successful transaction or not.

Those details can make a big difference as well. Now if you read the laws for your market looking for ways that this can't be done, you most assuredly will come to the conclusion that it can't. But if you look for ways that it can be done, you and your attorney just may surprise yourselves. Now with that said, the bigger win for you lies in one of two additional options. When the retail option is laid out for the seller, they will either come to grips with the work and the time involved to get top dollar for their property and then reconsider. They'll re-engage with your investor offer.

Or they'll decide to go down the retail realtor route of which gives you a sales. solid no and will save you time and energy to serve your next motivated seller lead. Both of those are wins. Now if the seller chooses option two, the investor option, how you win is pretty straightforward by saving the seller time and energy and you're compensated with equity in the property. Now if the seller chooses option three, the co-op option, congrats. You just got the seller to agree to finance a part of or all of your deal. Don't forget, go to the legendschallenge.com and I'll get you the rest of the training, as well as work alongside you. Connect the dots here and answer all of your questions,

help you analyze your deals and help you get things done. The legends challenge.com. And if you found this episode valuable, who else do you know? There's a good chance that you do know someone else who would. And when their name comes to mind, share with them and ask them to click the subscribe button when they get here. I'll take great care of them. All right, that's it for today. God loves you. And so, do I? Be safe out there tonight. And health, peace, blessings, and abundance and success to you, all of that for you and everybody that you know and love. I'm Matt Terry O. You know. We got the cash flow. You didn't know home for us. We got to cash flow.

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