Module 2 A Negotiating How to Build a

Module 2 A – Negotiating How to Build a Passive Income Portfolio with Creative Financing & Private Money

Negotiation Tips with Sellers “Lock up” the Property Contract Option Motivation Factors Understand what it is that the seller wants or needs Contingency Clauses Limit risk “Mr Buyer and/or Assigns” Keeps options open Buy the Property under Entity Name LLC Corporation Land Trust

Negotiation Tips with Buyers Qualify Buyers Dialog not Monologue Use Surveys Able Buyers Financially Able Offer Terms Pay closing costs, terms, barter, rebates

Build a Rapport Be Yourself! Motivation behind it • Find the Seller’s “weakness” Offer Solutions & Listen Set an Appointment within 24 hrs Care to Help

Before Writing an Offer Keep it simple Know the market • Comparables in the area • Economy trends Make your offer

Determining How Much to Offer Price Length of Contract Monthly Payments Judgments, Liens, Behind of payments Seller paying incentives

Common Seller’s Objections to Lease Options I don’t want tenants What if they trash the house? What if you don’t keep up the payments? What if you don’t buy? Why can’t you buy now? Can my attorney review the contract?

Common Seller’s Objections to Subject To I want more money for the house Why should I give up the deed? I don’t want tenants in the house I should probably just list it Can my attorney review the contract?

Common Money Partners’ Concerns Who Borrows at High Rates and Why? Who handles all of the details? How do I get paid? What if I need to liquidate? Is my investment really as safe as it sounds? What are my options if the note does not get paid off at the end of the term?