Hunter Estess of New Orleans brings a lot of experience to the table when it comes to real estate investing.
New real estate investors think that real estate negotiations require just one round of preparation and planning. They do not. Every successful deal consists of many small negotiations at various stages. Every phone call, every letter, every communication is a negotiation. Before you do anything, you want to think about what response you want and then craft your message in a way that will maximize your chances of getting a positive response.
Sometimes real estate investors try to negotiate quickly hoping that the other party will forget or overlook something important that will come up only after the deal is closed, when it will be too late to do anything about the issue.
A quick deal violates many negotiation rules and is rarely the right way to go. If you choose to increase the speed of any negotiation, you need to do so with extreme caution.
It is essential for a mutually agreeable deal to have both parties satisfied. Overly quick negotiations usually make one party feel bitter and cheated. While in many instances it is just a perception, perceptions do matter if you want to do repeat business with the same people. Usually each participant of a negotiation needs to feel that they have won a number of concessions to be able to say that they have done their job well.
Learn to go through the motions of a negotiation slowly just like Hunter Estess does, even if you are satisfied with the terms and the price.
Hunter Estess of New Orleans is a highly regarded figure with years of experience in the real estate industry.
One of the dangerous traps that awaits beginner real estate investors is the aura of legitimacy. It is the predisposition of people to believe what they see on paper or what they hear spoken by the media.
For example, you may get a contract to review and sign that says “standard form of agreement” or something similar. The intent of this line is to convey the aura of legitimacy and make you think that the agreement is non-negotiable. In reality, there is no such thing as a standard agreement. Every agreement and every deal are negotiable under the right circumstances. All you have to do is to find out who has the authority to make the changes and then deal directly with that person. If they really want to make a deal, you will find parts of the contract that are negotiable.
This is why you want to learn early in the process about who is in charge and deal directly with that person. There is a reason why the biggest deals are made by decision makers who meet in person. You can create a much different atmosphere and level of trust when you have face-to-face meetings. Remember, the business of real estate is all about the relationships you create with other people. Find the decision makers and deal directly with them just like Hunter Estess does. This will make your life much easier, and deal cycles shorter.
Hunter Estess began working in real estate in the early 2000s, and received his degree in construction management in 2006. Today, he has hundreds of real estate investments.
One of the things that every beginning real estate investor needs to understand is that is a big difference between the business of investing in real estate, and the legal aspects of buying and selling real estate.
Lawyers find potential problems and explain to their clients all the details of what might happen in every legal scenario. As a real estate investor, you need to keep legal matters in mind, but you can’t think like a lawyer. Lawyers usually advise their clients to steer away from a deal if a deal has legal issues. At the same time, lawyers are not educated or licensed to provide business recommendations and advice to their clients.
The best approach is to understand that everything is negotiable. While a property or a building may have problems, almost all problems in real estate business come with a price tag. A property may have some legal issues like zoning, but you should ask yourself whether these issues are a deal-breaker, and what your price tag is for each issue.
You need to look at all legal problems as a way of getting more out of a deal.
If you are a buyer, you need to remember that the longer a negotiation lasts, the more likely the seller is to become cooperative when it comes to price. The reason for it this simple: when you are starting to negotiate, the seller is already spending the money from the deal in their mind.
Hunter Estess always takes his time to prepare for a negotiation and conduct his negotiations in a professional manner that increases the chances of a successful outcome.