Making Dollars and $ense Out of Real Estate Training an Investing
Real estate negotiations
Seeking an Edge in Real Estate Negotiations
All right, welcome back. So I want you to take a, take a close look at this picture on this slide, because you see that guy is walking on the edge of a razor blade. That's what we're looking for. We're looking for the slightest of edges in real estate contract negotiations. And I'm going to point out some things that are obvious that you guys already knew. And I'm going to point out some things that aren't so obvious that you're going to learn for the first time. And, and I hope that you capitalize on it and send me an email. Let me know how well or how poorly it worked, because I'd love to pass on the stories that are good and I'll teach about what happened in the wrong stuff. So, anyways, let's talk about this prior to making an offer. So I'm going to break this down to both buyers and sellers. So, first one to talk about the buyer, making an offer. We talked about it in the last slide, I think, or the two slides ago, search the other party's name through the pub, the public records and the clerk of the court website. We're looking for any information about your opponent or the other side. It doesn't necessarily have to be bad information. It could be. They just prevailed in a divorce, or they just collected on a judgment. All of this information will give us color and clarity into the other side situations. So that's what we're looking for. Buyers, particularly buyers, be careful not to disclose any personal information while you're looking at the property in a perfect world. The seller won't even be at the property when the agent shows it to you. But if they are you in any one accompany, it must remain silent. You have to be quiet. You don't want to give away anything that disappoints or anything that excites you. And with hidden cameras around everywhere these days, the seller may not even be physically in the house, but they still might be able to see you when somehow, somehow be able to hear you as well. So please be quiet as you can, no need to no need to tip your hand describing how much you love the house. Can you imagine if you're a seller and you're listening in on a conversation between two buyers and they're walking by and they're giggling, oh, look at this size in a closet. Oh, I love this bathroom. And you're the Salar and now you're going, okay, let's see what kind of offer they're going to give me. And I'm going to bump it up a little bit because these guys really like this house. Now, unfortunately you can never be sure if somebody is listening, because if you could be certain that they were, you could play act and use it against them. Even though you love the closet size and you love the bathroom, you can say, oh, well, the bathroom, isn't exactly what I wanted. I needed to have more storage for closet. I mean, for towels and the closet isn't as big enough, I need to put my vacuum cleaner in it. You know? So you can downplay it if you want. But, uh, that might even be a good idea, no matter what, but don't, don't give a running commentary on how grace, every a great everything is make sure that you wait until you are in a private setting to discuss how much you love the house. Sit. I'm going to address the seller for just a second. All the things that I cautioned the buyers not to do. Mr. And Mrs. Seller, you look for that. You listen to what the buyers are saying. You don't have to be in the same room as they are to hear what they're talking about, where they living. Now, if you can figure that out, if you can learn, just ask questions, friendly questions about where they're living. Maybe your agent knows something. What kind of car are they driving? Is the wife pregnant? That might mean something. That's a, that's a, that's a sign that they're looking for a bigger house in, in, in my mind. And also once you find out what their name is, do some research, do some public records and clerk of the court, digging into their names. Just to see if you can find out if there's anything that might pull them one way or another happiness to sadness, because all that's going to help you in your negotiations. Trust me, the more, you know, the better negotiator you're going to be. Let's talk about the basic provisions of the contract. Now, anytime you see a contract, you're going to see they're 12, 13, 14, 25, who knows? They're long. There's a lot of pages to a contract. And the reason those contracts are 25 pages is because something happened along the way with regard to the parties and contracts, where they didn't like what happened, or they had to clarify what happened. So a contract that started out to be a handshake, and then we went to writing with one page and then it grew every time something was Allowed to exist in a, in a, in a contract that shouldn't have been allowed, the lawyers get involved, they rewrite it. Long story short, we've got, uh, 85 paragraphs and 25 pages. So most of the contract that you're going to see, anytime you look at contracts, they're going to be lawfully necessary. In other words, there's certain prerequisites in order to have a contract, got to have a deposit, it's gotta be in writing, gotta be signed by both parties. And there's other things that lawyers can tell you with regard to the definition of a contract. I'm not going to get into that stuff. All I want to talk about are the clauses that we can use to our advantage, either a buyer or seller. So we're going to talk about those coming up right now. So let's start with the simplest of contract provisions, names of the parties. There's nothing, there's nothing that we can do with that. Then your name is your name and their name is their name. It's just, when you're looking at a contract, see if the name is a personal name or an entity like ABC 1, 2, 3, LLC. If it's an entity, go on to your public records website, generally the secretary of state, and just run that entity in that website to try to find out who the officers are. Now. It might be Mr. Mr. And Mrs. Joe Smith. And it's not gonna make any difference most of the time, but go ahead and run, find out who they are and take their individual names as well as the corporate name and run it in the public records. Just to see what you can find out. Also, if you're a seller, if you're selling a property to an investor, they may include and, or assigns next to their name on the contract. So that's going to give them as the buyer, their name and or assign. So they're going to, they're trying to reserve the right to assign that contract. It's not a bad thing, but I just want you to know that it's there now, touching on that and, or assigns provision once again. So if you sell the house to ABC 1, 2, 3 Corp, and it turns out that at closing on the closing statement, the buyer is bill Smith. And not that corporation, the corporation assigned the contract. They most likely received an assignment fee. And bill Smith is the one that paid the fee to stand in their shoes and have the right to buy your property. Don't sweat it, it doesn't mean anything. You agreed to sell the house for a hundred thousand. It doesn't matter who buys it. So if it's assigned, it's okay. As long as you negotiated in good faith and you feel good about your number, it doesn't matter who gives you the money. The next basic provision is simply the address. Just make sure it's correct. Buyer seller. Make sure the address is correct. And you can do that by matching up against the public records, property appraiser website. Just make sure the address is more importantly comes the next one legal description, make sure the legal is correct. And if you have a meets and bounds legal description, good luck. It's going to take you a few minutes, but if you have a lot in block legal, take you three minutes, but make sure the legal is correct because the legal description is what the court is going to refer to. If there's a dispute, not the address. So the legal description has to be correct, and there's nothing, absolutely nothing to negotiate with this. So with that said, I'm looking forward to getting into the meat of this thing. I'll see you on the next slide.
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