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Transcript

Only The Best Property Deals Will Do · The Property Unleashed Podcast

• 0:00
  Speaker 1: How to negotiate the best deals.
• 0:02
  Speaker 1: Hello, my name's Mark Fitzgerald.
• 0:14
  Speaker 1: It's great to have you joining me here at the Property Unleashed.
• 0:17
  Speaker 1: So in this episode, I'm gonna explain to you the art of negotiation and how you can secure good property deals in whatever strategy that you're trying to achieve Now.
• 0:28
  Speaker 1: You may be trying to buy properties, you may be trying to do rent to rent deals in serviced accommodation or HMOs, whatever.
• 0:35
  Speaker 1: This will help you in all of those.
• 0:39
  Speaker 1: Okay, so there is no one size fits all when it comes to these, but fundamentally, you need to make sure that you have these in check.
• 0:47
  Speaker 1: Okay, so you need to, first and foremost, be able to understand what a good deal is.
• 0:53
  Speaker 1: What do I mean by that?
• 0:54
  Speaker 1: Well, if you're going to go in and negotiate on any property deals whether it's rent to rent, buying, purchase, lease options, deal sourcing, you name it you've got to understand what a good deal is to you.
• 1:07
  Speaker 1: You need to know your numbers, okay, and you need to be able to work your numbers out relatively quickly.
• 1:13
  Speaker 1: Now, one thing I will say to that is never feel rushed.
• 1:16
  Speaker 1: Never feel that when you turn up on the spot, that you have to make an offer.
• 1:20
  Speaker 1: Then and there, in fact one of my coaches told me in the past he actually says to people listen, I'm going to walk around your property with you today and no doubt I probably will make you an offer, but it won't be today.
• 1:32
  Speaker 1: So let's get that out of the way and let's go and have a good chat, walk around the properties and let's just enjoy our time together.
• 1:39
  Speaker 1: So for argument's sake, let's just say you're looking at doing short-term rental, serviced accommodation, but you find yourself looking around an HMO.
• 1:46
  Speaker 1: Now some people who are the amateurs will be thinking to themselves how can I make this HMO work for serviced accommodation when fundamentally it won't?
• 1:55
  Speaker 1: Okay, now, in some instances it can, but normally it doesn't.
• 1:59
  Speaker 1: And of course, if you do start running a serviced accommodation with a licensed HMO, you risk the landlord losing their license.
• 2:07
  Speaker 1: So it's not really worth doing all of those sort of things.
• 2:09
  Speaker 1: But if you find yourself looking at an HMO and you are looking at maybe doing an HMO for professionals, which is, you always want to be at the top sort of area when it comes to doing HMOs.
• 2:21
  Speaker 1: You don't want to be at the bottom because that's where the noise is, that's where it's very, very busy.
• 2:24
  Speaker 1: So you want to be looking at maybe professionals, maybe young professionals, depends.
• 2:28
  Speaker 1: Really work out what it is and what your target market is before you go into those properties so that you can see if it fits.
• 2:36
  Speaker 1: Trust me, I always say there's opportunities out there, there's opportunity everywhere, but it goes past some of us.
• 2:42
  Speaker 1: Why?
• 2:42
  Speaker 1: Because we're not looking for the right things.
• 2:44
  Speaker 1: If you know what it is that you're looking for, you will be looking for the right things.
• 2:49
  Speaker 1: So make sure you get a clear understanding of that and just sit down and work it out.
• 2:53
  Speaker 1: Also, determine your ideal outcome and establish the top limit I can go to.
• 3:00
  Speaker 1: When I'm making an offer on a property.
• 3:02
  Speaker 1: Forget about what the landlord wants, forget about the price, forget about the market value, forget about what rents they want or what price they want if they're selling it and things.
• 3:13
  Speaker 1: What can you pay?
• 3:15
  Speaker 1: What makes this property a deal?
• 3:18
  Speaker 1: Do not get hung up in what they're saying.
• 3:20
  Speaker 1: They say that they want this.
• 3:22
  Speaker 1: You have to pay this.
• 3:23
  Speaker 1: No, no, no.
• 3:23
  Speaker 1: What works for you?
• 3:25
  Speaker 1: Get an understanding of that.
• 3:26
  Speaker 1: I always say the numbers never lie.
• 3:28
  Speaker 1: A deal isn't a deal unless it's a deal.
• 3:30
  Speaker 1: You have to make sure that the numbers stack.
• 3:33
  Speaker 1: See, if you do this correctly.
• 3:36
  Speaker 1: It'll help you stay focused and avoid making impulsive decisions that potentially you will regret or that do not align with your investment objectives.
• 3:47
  Speaker 1: So if you're looking at doing rent to rent and you're looking at taking on the HMOs, you need to know my clientele is young professionals.
• 3:55
  Speaker 1: Ok, anybody that's within the age of 20 to 35, that's who I'm looking for.
• 4:00
  Speaker 1: I want to make co-living as part of my business structure, so I'm looking for properties that are already in a decent, high standard.
• 4:08
  Speaker 1: Looking for landlords or investors to work with that understand the importance of working with a company like mine, because we will maintain the property and look after the property and keep it to the highest of standards.
• 4:20
  Speaker 1: Ok, those are the sort of things that you want to be looking for and you will attract it to you if you know what you're looking for.
• 4:27
  Speaker 1: If you don't have a clue, you'll attract anything, and that is where I see a lot of people get stuck and also struggle.
• 4:34
  Speaker 1: Know your strategy that you want to do on somebody else's property inside out, inside out so pay for some education if you have to.
• 4:44
  Speaker 1: Okay, don't wing it.
• 4:45
  Speaker 1: As the old saying goes, you don't know what you don't know, so don't expect people to take you seriously, people to want to work with you If you don't know what you're doing 100%?
• 4:55
  Speaker 1: Why?
• 4:56
  Speaker 1: Because if you don't believe in yourself, they won't believe in you either.
• 4:59
  Speaker 1: You need to know that you can follow through and do what you say you are going to do and make sure that, if nothing else, you are determined to get the results that you promise people.
• 5:12
  Speaker 1: So when you start getting out there and meeting people, you want to be looking at building up rapport, establishing a positive rapport with the seller or, of course, with the landlord, depending on the strategy that you're doing.
• 5:25
  Speaker 1: Don't start negotiating with people at the very beginning.
• 5:29
  Speaker 1: Just start talking to them.
• 5:31
  Speaker 1: Okay, you don't really want to be talking about numbers too much or anything like that.
• 5:34
  Speaker 1: You just want to be finding out more about the property.
• 5:37
  Speaker 1: And, as I always say, you're not looking for a property.
• 5:40
  Speaker 1: Now you'll say, mark, you're crazy.
• 5:42
  Speaker 1: What are you on about, man?
• 5:42
  Speaker 1: Of course I'm looking for a property.
• 5:44
  Speaker 1: Listen to me, listen to me, hear me out, hear me out.
• 5:47
  Speaker 1: You're looking for a problem?
• 5:49
  Speaker 1: Okay, I've never done a deal with a landlord, with agents, with anybody who don't have a problem.
• 5:55
  Speaker 1: No-transcript.
• 6:14
  Speaker 1: Okay, show a genuine interest, be respectful and try to find common ground as quickly as possible as well.
• 6:22
  Speaker 1: Look around the properties.
• 6:23
  Speaker 1: If you see things that you resonate with, don't make them up.
• 6:26
  Speaker 1: Okay, that's the other thing.
• 6:28
  Speaker 1: Do not make up.
• 6:29
  Speaker 1: You know they go skiing or something like that.
• 6:31
  Speaker 1: You've never been skiing in your life.
• 6:32
  Speaker 1: Oh, I love skiing.
• 6:33
  Speaker 1: No, no, no, no, no, no, no, no, no.
• 6:34
  Speaker 1: That will lose trust.
• 6:36
  Speaker 1: That will absolutely shoot you down quicker than you can think of.
• 6:39
  Speaker 1: So don't do stuff like that.
• 6:41
  Speaker 1: But if there is any common ground, okay, then use it, start talking about it, make them know, like and trust you Understand their motivations.
• 6:50
  Speaker 1: Everybody's got a reason for doing something.
• 6:52
  Speaker 1: Okay, we've got a reason.
• 6:54
  Speaker 1: We're there because we want to build our property businesses and we want to get a deal over the line.
• 6:58
  Speaker 1: They have called us or wanted to speak to us because they have a problem.
• 7:02
  Speaker 1: They have a reason.
• 7:03
  Speaker 1: So what is their reason?
• 7:05
  Speaker 1: What motivates them?
• 7:06
  Speaker 1: Is it money?
• 7:07
  Speaker 1: Is it just finding somebody to look after their asset properly?
• 7:10
  Speaker 1: Is it finding somebody, if you're going to buy the property, that will respect the property?
• 7:14
  Speaker 1: Why?
• 7:14
  Speaker 1: Because you get emotionally attached to property.
• 7:17
  Speaker 1: We live in it, ok, so some people get seriously attached to it and, of course, as we say we don't ever want to be a motivated buyer, but we are looking for motivated sellers, if you like.
• 7:28
  Speaker 1: So make sure that you understand their motivations and try to understand and reason with it as well.
• 7:34
  Speaker 1: Now, we're not trying to use this against them.
• 7:36
  Speaker 1: That is very important as well.
• 7:38
  Speaker 1: Any deals you do have got to be a win for you and a win for whoever you're working with.
• 7:44
  Speaker 1: So now we've got an understanding of that.
• 7:46
  Speaker 1: We have to then just make sure that we are actively listening to them.
• 7:51
  Speaker 1: Two ears, one mouth for a reason.
• 7:54
  Speaker 1: Don't assume anything.
• 7:55
  Speaker 1: Ok, some people always say to me I'm not going to look at this Mark because they want all of this money for it and it won't work, do they?
• 8:05
  Speaker 1: We don't know until we've spoke to them.
• 8:06
  Speaker 1: We don't know if it's a good deal until we've walked around the property.
• 8:09
  Speaker 1: So always do try and get a viewing.
• 8:10
  Speaker 1: You have to have a viewing.
• 8:11
  Speaker 1: You have to walk around the property and see what it's all about, particularly when you're doing rent-to-rent deals.
• 8:15
  Speaker 1: Never do a deal on a property that you've never seen.
• 8:18
  Speaker 1: So it's very important to get in there and walk around those properties, but never assume you know what it is that they want.
• 8:25
  Speaker 1: Now, if you need help with this, then do check out thepropertyunleashedcom.
• 8:29
  Speaker 1: We have free tools and resources on that website.
• 8:31
  Speaker 1: We have rent-to-rent training, service accommodation training, hmo training, deal sourcing guides, essay guides all sorts of good stuff there.
• 8:39
  Speaker 1: Deal stackers as well.
• 8:40
  Speaker 1: That's at thepropertyunleashedcom Free training as well.
• 8:45
  Speaker 1: So just go and help yourself to that and I put that there to help you make sure that, a what you're trying to do and get out there is right for you and B I see far too many people making mistakes with this, giving us all a bad name.
• 8:56
  Speaker 1: So get educated.
• 8:57
  Speaker 1: So there's some free training there and if you do choose to come out and really push yourself and really motivate yourself and it's 100% what you want we've got training programs that you can come and join as well.
• 9:08
  Speaker 1: But anyway, most times when you speak to agents, when you speak to landlords, when you first start talking to somebody, all they're going to do is give you the fluff.
• 9:17
  Speaker 1: They're not actually going to tell you their underlining issues.
• 9:20
  Speaker 1: Why?
• 9:20
  Speaker 1: Because they don't trust you yet.
• 9:21
  Speaker 1: They think that you're there to try and rip them off.
• 9:23
  Speaker 1: Everybody well, not everybody, but most people always think that somebody is trying to get one over them and that is why we make sure that we're not.
• 9:32
  Speaker 1: We're just trying to work with them.
• 9:34
  Speaker 1: Okay, we're not trying to get one over anybody.
• 9:36
  Speaker 1: We don't want buyer's remorse.
• 9:37
  Speaker 1: We want to do the good deals that everybody wins from and then we can do a good job for them as well.
• 9:43
  Speaker 1: So just take initially what they say with a pinch of salt, depending on your rapport.
• 9:48
  Speaker 1: If you get great rapport and it builds up really, really well from the word go, then hey, maybe they do want to actually tell you their main issues, their main problems.
• 9:58
  Speaker 1: But I always find it takes a bit more digging to get the information that you want.
• 10:04
  Speaker 1: Ok, the real answers will come just in the flow of a conversation, rather than being interrogated with questions and stuff.
• 10:11
  Speaker 1: Ok, questions are great, but conversation is key.
• 10:15
  Speaker 1: So make sure you start getting used and comfortable to having conversations with people and talking about things.
• 10:21
  Speaker 1: But open-ended questions are great to get them opening up, to get them talking, and again, they should be talking more than you.
• 10:29
  Speaker 1: Okay, and don't start trying to sell yourself until they ask you to sell yourself.
• 10:33
  Speaker 1: So they ask you well, how are you gonna do this?
• 10:35
  Speaker 1: What is it that you actually do?
• 10:37
  Speaker 1: Can you tell me more about your business and your strategy.
• 10:39
  Speaker 1: Yes, boom, I've got permission to do so.
• 10:43
  Speaker 1: And if you do need to start asking questions, ask for permission first.
• 10:52
  Speaker 1: Do you mind if I ask you some questions about the property and some costs?
• 10:55
  Speaker 1: Is that okay with you?
• 10:55
  Speaker 1: And then go quiet?
• 10:56
  Speaker 1: Yeah, that's okay with me, mark, you can ask away.
• 10:58
  Speaker 1: Ask me anything.
• 10:59
  Speaker 1: Boom, I can then ask them pretty much anything that I want within reason.
• 11:03
  Speaker 1: Let's be right, let's be right.
• 11:04
  Speaker 1: So we've got to make sure that the rapport's there.
• 11:07
  Speaker 1: We're building that up.
• 11:08
  Speaker 1: We've got to make sure that it's a win-win for everybody.
• 11:11
  Speaker 1: We've got to make sure that it's a right deal for us Once you've got this and you know your numbers.
• 11:15
  Speaker 1: Okay, and that comes with practice as well.
• 11:17
  Speaker 1: As I say, we've got a deal analyzer on the property on Leashcom.
• 11:20
  Speaker 1: You can download for free.
• 11:21
  Speaker 1: I'm not charging anybody for it.
• 11:22
  Speaker 1: So make sure you can stack good deals when it comes to rent to rent.
• 11:25
  Speaker 1: So make sure that you know what you can offer.
• 11:27
  Speaker 1: Now, what you can offer is what you can offer.
• 11:29
  Speaker 1: Ok, don't elevate numbers, prices, room rents, anything like that to try and get a deal over the line.
• 11:36
  Speaker 1: It will come back and bite you If you can only offer this offer that.
• 11:41
  Speaker 1: Do you know what I mean?
• 11:42
  Speaker 1: In most cases, if you stack your deals properly, we should be very competitive with a letting agent's prices because of the way that we do things and this is what I teach my students as well as how to put your offers across.
• 11:53
  Speaker 1: How to negotiate is what I teach my students as well is how to put your offers across, how to negotiate.
• 11:56
  Speaker 1: We've got all the templates for these so that they can send their offers out, so that they can send good deals out to their landlords, which is why so many of them are getting more and more deals as well, because this stuff works.
• 12:06
  Speaker 1: But also they're having very profitable businesses rent-to-rent businesses or property businesses because they are doing the good numbers.
• 12:15
  Speaker 1: Okay, make sure again that you are always working with people.
• 12:20
  Speaker 1: You're trying to find the problem and then we get out there and we help them with our solutions and, if we can, as I said to you before, point them in the right direction and send them on their merry way.
• 12:29
  Speaker 1: What goes around comes around in life, so by helping others, you, in turn, will have good karma coming all the way back to you.
• 12:37
  Speaker 1: Hope you've enjoyed this.
• 12:38
  Speaker 1: Check out thepropertyunleashedcom website.
• 12:41
  Speaker 1: Reach out to me on social medias YouTube, instagram follow us on there.
• 12:44
  Speaker 1: I'll follow you back if you give us a DM.
• 12:46
  Speaker 1: If you've got any questions, any problems, please feel free to DM me on social medias.
• 12:51
  Speaker 1: I have the little blue tick by my smiley face, so it will be me that you're talking to and if I can help you and support you in any way, shape or form, then I am here to do so.
• 13:01
  Speaker 1: Take care, and I'll see you in the next episode very soon.
• 13:05
  Speaker 1: Take care and bye for now.