Speaker 1: Do you like the idea of saving thousands of dollars in negotiation strategies on a real estate deal? Did you know last year, 32% of sellers paid somewhere all of someone else's closing costs? But I'm talking about the real negotiation where you can save tens of thousands of dollars. If you want to know how to do that, in today's video, I'm going to have you learning negotiation tactics from Robert G Allen. The original gangsta in the game of winning real estate. Check it out. A house is the most expensive commodity you're going to buy in your life. So, guess what? If you ever wanted to apply negotiation tactics to something that could save you the most money, it's definitely going to apply to the most expensive thing. Which is why I am with the one and only Robert G Allen here in studio. And today, we're going to be talking about the game of negotiation and 5 tactics to be able to win. Bob, what qualifies you probably as one of the most bestest humans on the planet. The bestest humans on the planet for literally learning how to negotiate deals. Probably taught more people and

Speaker 2: then all the other combined on how to negotiate with billions of dollars with the real estate have saved a billion dollars in profits have been generated. So, let's talk about how you can negotiate your way to wealth. So, first of all, I

Speaker 1: got to say we got some good news, right? We are sitting in the first ever buyers market that we've seen in the last decade. Bob, why is this good news? Because

Speaker 2: there's more highly motivated sellers and there are thousands and thousands and thousands being created every single day. And all you need are 4 or 5

Speaker 1: this year, right? Well, and let's actually talk about like when you can really negotiate meaningfully in a buyers market whereas you can't in a sellers market. In 2021, two-thirds of all homes for sale resulted in a bidding war. But in the summer of 2022, only 48% had 3 or more offers. In other words, the tides have turned like I remember last year bidding sometimes against 50 other buyers on a property. But it is almost ghost towny out there and how the market has shifted. As interest rates increase, buyers are gaining more and more power. And those with the right negotiation skills have an incredible opportunity to

Speaker 2: invest more successfully. Because with the right negotiation skills, you can save yourself tens of thousands of dollars. It's probably the easiest way to make money there is. It's just negotiating in the right way. So, Bob,

Speaker 1: before we talk about these 5 tactics that are going to help you become an expert negotiator in the game of real estate, I just want to talk about what a big opportunity this is. Because you might be watching this video saying, come on, Kris. I'm only going to buy like a couple of homes in my lifetime. And they're only the houses I'm going to live in. And to that, I'd say, yeah. But why not get like a better price? Why not get a better discount? Why not negotiate a better deal on that? But I'm also just going to warn you right now that when you take a look at your accumulation of assets by the time in your 60s, you'll have more equity than you have more savings for retirement. And if that's true and you got a couple hundred thousand dollars of equity in your house, at that point you're going to be thinking, man, you know, if I had negotiated on 4 more houses, I'd be a millionaire. Which is why everyone should own more real

Speaker 2: estate. Absolutely. Have an extra million in your lifetime. Especially if you negotiate right. You can negotiate the interest rate down just a little bit. A long period of time, it means hundreds of thousands of dollars in your pocket. So, let's think smart about negotiation. Alright, Bob. Let's be clear with everyone

Speaker 1: here. You can't successfully negotiate if you don't actually know your numbers. Before negotiating, it's crucial to do your homework. Run comps or comparables on various websites to know what the property in question should be worth. And then decide beforehand how much you would actually be willing to pay for it. In other words, Bob, knowing your numbers is, is this going to be a good deal or not? And can you talk a little bit to like how should someone even define

Speaker 2: whether something is or isn't a good deal? Well, it's 2 ways you get a good deal. Number 1, you get it buying below the marketplace. And last year, it was hard to do that. Because everybody was buying more than the market. But they're always highly motivated sellers. People are willing to sell below the market. We're looking for those. It's 1 in 20. And number 2, it's the terms. How much down payment? What is the interest rates? What are the monthly payments? All that's negotiable. And that put thousands of dollars in your pocket. Yeah. Like

Speaker 1: just imagine for a moment that you were buying a house that was worth $300,000. You did the comps. You ran your numbers. And you had confidence. This house is probably worth $300,000. Should I make my offer at 320,000? 20,000 above? That's what people were doing in 2021. Terrible. But right now where you've got a lot of sellers that are getting more and more desperate, if you know the house is worth 300, what kind of offer could

Speaker 2: you start maybe putting out there? You could offer 250. You could offer 260. Something below the marketplace. It's if the sellers flexible. Bob, how many more

Speaker 1: motivated sellers do you think are out there right now as opposed to the last

Speaker 2: decade? In the last 10 years, there are more motivated sellers this year than there have been in the last 10 years combined. And it's going to get worse for

Speaker 1: them and better for us. Bottom line is there's a lot of people that have problems that need to be solved. And real estate investors with the negotiation tactics we're talking about, you have a chance to solve some of those problems. You have a chance to get people out of obligations that they need out of. You have an opportunity to get people out of some of those financial problems by saying, hey, maybe you don't have a reasonable solution on how you can move this house. I can help you with that with what you're about to learn. 2 secret

Speaker 2: words. You want to put them in every single contract you write from this day forward. The words subject to. Subject to what? Well, you can say subject to your qualification, subject to your investor, your partner looking at the property, subject to the inspection of the property. But I like to put subject to you being able to present the offer personally to the seller. Because if it's listed with the realtor, they don't want you there. They want to keep you completely out of the picture. But if the seller has indicated that there's some flexibility, you want to be face-to-face with that seller. Because they can get hit off of you. They can determine whether you're an honest person, whether you're a win-win person. And if so, they'll feel you. And that's really

Speaker 1: important in this game called real estate. So, the second tip really is a powerful negotiation tool. Subject to is a powerful clause that you can put in an offer that voids the offer unless certain conditions are met. Because face-to-face meetings are so crucial like Bob said for negotiations, you can stipulate that your offer is only valid subject to meeting the seller. This will allow you to assess the seller situation and add value where other buyers don't. In other words, you're trying to stand out and look different than other buyers. And meeting the seller gives you in some situations, gives you an upper

Speaker 2: hand. Absolutely. And I can't tell you how many stories I've heard of people who have done this and have had the seller come back to them and said, you know, I liked you better than all the other people that have been offering me more money. I like the way I interact with you. I want to sell to you. So, that's why this clause is really important to put in your contract.

Speaker 1: You know Bob, one of the things that I really like about what you're talking about here, have you ever noticed that people treat you different through email and text than when you actually connect face-to-face? Like I am notorious for sending video conversations with people and facetiming people. Just last week, I was going to have a really tough conversation with someone. And I knew that if all we did was hear each other's voice, that was going to go different than if we could see each other. So, I insisted on doing a zoom. And when we zoomed, well he showed me his house and introduced me to some family members. And within the first few minutes, the ice was broken at a higher level. And we were connecting. And what I think I see happening here, I want to kind of get your opinion on this is that you're trying to get someone to treat you as a human instead of an object. You see, if they don't really know you and you're just an offer and you're a contract and you're just a name, a signature. Then they don't really have to afford you sometimes the respect that a human should deserve. But if they meet a really nice cordial human being that has that win-win energy and attitude, you're going to have something that no other buyer has. Because it's like, well I can put a face to you and I read your energy and I felt you and you're a human with goals and dreams and probably fears like I have. Now, I'm talking to a real human. And often deals just go better in that scenario rather than hiding behind text emails or contracts.

Speaker 2: Absolutely. You know, when you meet with somebody, they get to feel that you are trying to solve their problem. So, when you sit down for a negotiation, that's your mindset. You're not there to beat them down to the last dollar. You're trying to say, hey, what's your problem? Let me help you solve it. Maybe I could solve my problem at the same time. My problem is I want to buy this property or the best deal I can because I'm a business person. But if I can't buy this property, if it's not win-win for me, then I want to help you. And this comes across face-to-face better in any other way to do it. You just can't do it over

Speaker 1: the phone. You know, often I fly people in town when we're conducting really big business deals, acquisitions, mergers and things like that. And when we first get together, it's not right down to business. We usually organize food so we can break bread. We like to actually go and do some kind of activity. And the first of the 2 days is usually more of a let's get to know each other and just even try... Like, do we like each other? Let's learn about each other. And then the second day by the time it gets down to business, guess what? Sometimes we're sitting there saying, well, we like each other. Let's explore until we can find a way. And then now all of a sudden, we're putting a deal together based on people that like each other. I think that's part of what this subject to business is all about which is get past the realtor and get to the seller. Get to the person because if they meet you, they may be way more flexible and way

Speaker 2: more open to finding a deal. Especially if you're trying to do some creative financing. You know, if they really don't trust you, then they won't take your nothing down deal. But if they trust you and they feel like you are a legitimate, true, honest, good person, they will do things out of the ordinary to help do the nothing down deal with you. But they won't do that without meeting with you. So, this is why I said this is really critical. This is the most important of

Speaker 1: the 5 we're going to talk about. Alright, I want to cue in on something Bob talked about. He talked about presenting this energy of trying to find a win-win. A win for you and a win for me. And we can only have a win if both parties win. It's not a one-sided transaction. Most people live in that kind of world. That's not the world you want to live in. You're going to win more by practicing this third tip called lemonading. When life gives you lemons, add sugar. Find ways to sweeten the deal for the seller including making repairs, putting them up in a hotel for a few nights or simply letting them stay in the home for an extra month or 2. Find out what is important to them and then help solve their problems with rewards for doing a deal with you. Bob, like how real is this and how are you actually using this lemonade? Well, let's put it this way. If

Speaker 2: you're negotiating with a commercial real estate for example, you're not meeting at their home, you would take them to lunch and you pick up the check. Because whenever you do that, you just give this little giving. You become a little giver. Every little thing you give, even a concession in your negotiations. When they ask you for something, you say, okay, I'll give you that. By just saying the word give, it opens up this giving mentality and therefore they say, well then I'll give you this. And sometimes the giving that they give can be worth tens of thousands of dollars because you

Speaker 1: give a little bit, they give a lot. Yeah, it's this law of reciprocity. Exactly. People reciprocate and so by being a giver, what it does is it invites saying, hey, let's both show up giving and let's see if we can then arrive at a

Speaker 2: mutual win together. Exactly. So, lemonade means just sweetening up all kinds of little things that are going on. Just trying to be a giver and the greatest success seeker I can seek. Alright, we're on to our fourth tip. And Bob, this one is

Speaker 1: actually a cautionary tale for how the negotiations go wrong. You have to know when it's time to walk away. I can't tell you how many times I finished negotiating a deal that I no longer wanted halfway through. Because I actually went past my do not cross this line. And it was like, well, I got to know them and they got to know me and then they gave this concession. And before I knew it, I don't like how the deal turned out because I was too afraid to walk away. Only about 1 in 100 deals will be worth your time. The best negotiators will learn when to keep pursuing an opportunity and when to let it go. Make sure you keep emotions in check. Refer continuously back to your numbers and believe that if this deal doesn't work out, another one's going to come along. And Bob, if they don't get this deal, will another deal actually come

Speaker 2: along? About once in a lifetime deals happen about every Tuesday. So, don't get so highly motivated to buy it that you give up your profit. Remember, if this deal doesn't make you money, don't do it. And most people, they speculate. They hope the properties increase in value. And then the market shifts on them and they get holding a bag. So, be prepared to walk away. Well, it's very powerful.

Speaker 1: Can also say, there's also a difference between buying a house and a home, right? Like if you're buying something for your family, we get emotionally attached. Totally. And if you're an investor and you're buying a house not a home, you have to fall in love with the balance sheet. You have to fall in with the numbers and you have to play by the numbers. You know, when I started my investing career, I had this rule. I need to have an X percent discount. And the moment I lose that by even 1%, I'm out. And what it did is it made sure that every time I bought, I bought right. But I've noticed that sometimes you get a new investor who treats an investment property, a house like a home. Because they almost imagine as if they're going to be living there. And they're like, well, these cabinets aren't quite up to snuff. I'm like, whoa, whoa, whoa, whoa. This is a numbers game. We're going to deploy banks money and other people's money. And we're trying to get a performance on this. Who cares about the countertop? I mean sometimes people get confused. And so, knowing how and when to walk by the book, by the numbers is key to successful negotiations as well. That

Speaker 2: is going to save you thousands of dollars. Just that what he just taught you.

Speaker 1: Powerful stuff. Now, check it out Bob. When we were putting this together for you, I got a little bit confused on the fifth and final tip. So, I'm going to let Bob explain this whole don't look at the news. No matter what market you're in, there will always be motivated sellers offering deals below market price. As an investor, you should train yourself to ignore macro trends and just focus on finding or creating the perfect opportunity for yourself. Bob, explain what this has to really do with negotiating. As soon as the news came out

Speaker 2: that industries have gone up, that it's amazing how the buyers disappeared. Because they were reading things in the newspaper. And therefore, the opportunities that that created for us were all these sellers who needed to sell. And yet, the buyers disappeared on them. And therefore, they're left holding and they have fear. Because the the sellers, they read the newspapers too. And therefore, they are motivated by fear. Which is exactly what we want. We want the sellers to be afraid to hang on to that property. They want to get rid of it because they're afraid that bad things are going to happen. The economy's going to fall apart. Which we know it's not going to happen. Eventually, the market's going to come back and we're going to be sitting pretty holding properties that we bought at bargain prices. Well, it's Bob. It's even

Speaker 1: happening right now. I mean, every day I'm negotiating on homes. Buying them for tens of thousands of dollars less. It's because of the media. Yeah. It's because... And this is interesting. You know, how many times have you heard these notions and quotes that say, when everyone's running that way, go in the opposite direction? Well, the news is this dialogue of how people feel about money. And you know, Warren Buffett comments on this. He says, when fear is high, you know, then you should be looking for greed in the opposite direction. When there's blood in the streets and everyone is saying, don't. You should be saying yes. And that's what's happening in the market right now. Which is why this video is perfect timing for you to get in on increasing your negotiation skills. Because I got news for you. In this buyers market, the tables have turned and the benefits in your hands if you follow this advice. Every year, I publish my track record on thousands of homes that I've recently bought. And I disclose our ROIs and the money that we're making. Here's some of the addresses right here. And this document is available for you for free. Because in it, I don't just talk about how we negotiate successfully more than we've disclosed here in this video. But I also show you how to get in on the some of the highest ROI investment properties out there. If you've got $50,000 or more sitting in a 401k or an IRA or you know what? Even equity in a home that you've bought. And you're like, huh, I'm not really doing anything with that. But it's certainly not doing anything for me. It should be doing something for you. It should be building a real retirement. Single-digit ROI is never going to do that for you. Let me show you how to stash cash in the right kind of real estate the way that we negotiate it where you can step into deals with 25% ROI. Sometimes 50% ROI. So, if you want to get that, click the link below. I'll send this track record to you for free. Cover the shipping on it. I'll send this to you and show you exactly the system, the strategy, the negotiation tactics, how we do it. And talk to a member of my team and learn how to get that money actually doing something useful for you. You ever know

Speaker 2: somebody who is really not all that smart that made a fortune in real estate? Well, if you're investing in the stock market, Warren Buffett is the richest man in the on the planet. And what's his average rate of return? Like 22%? An idiot can make 25% on their money in real estate. That's very simple. All day long. And so, why are people investing their money in real estate and not the

Speaker 1: stock market? I don't get it. Well Bob, there's definitely your stock market people versus the real estate people. And I have some strong feelings on this. And if you want to know the difference between investing in the stock market real estate, click right here and let me show you.