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Take Away Power For Real Estate Investing

As a real estate entrepreneur, you must decide to learn the secret power associated with the takeaway. Maybe, you've already used it before. You may have used it and didn't even know it. Regardless, this method is a powerful trigger that will work wonders when negotiating with either a buyer or seller. This technique will definitely light a fire under your prospect's rear to get them moving regardless if you're on the buying or the selling side.

Here's what happens: you basically take away what ever it is you were offering. Maybe you take away a certain price on a property to hold out for a higher price, maybe you take away the ability to buy the sellers house or maybe you take away the deal all together. For example, let's suppose that you're selling a property for $100K. You have an offer from a buyer for $80K. You then counter the offer at $90K. At this point, you're pretty close to reaching an agreement with the deal, as you are only $10K apart. Well, the buyer offers you $83K as an attempt to get you lower.

At that point, you go back to the buyer and apologize that you made a mistake and that you feel awful about it. You tell them that there is no way that you can sell it for the $90K, that the lowest you are able to go is $93K. Now, in most cases, the buyer will not even talk about getting it below the $90K. They'll want you to come back to the $90K.

This is an example of the classic takeaway. This method is almost magical and really takes away the pressure from you and puts you back into the driver's seat of the negotiations.

Just recently I used this very technique on a note buyer that wanted me to jump through all these hoops to sell the notes to him. Here's what happened: We had a 2nd mortgage that a guy owed me around $23K. The borrower was current on his payments and had an excellent pay history with us. The note buyer had offered me $19K for this note and I accepted. Well, after a couple of weeks of goofing around, I still didn't have the money or a note purchase agreement. So, it seemed that this guy might be a tire kicker simply wasting my time, so I get on the phone with him using the takeaway. I simply told the note


buyer that I had given him more information on this note than I had given any one else with the notes that I had sold to in the past and that I wasn't going to continue to waste my time to hold his hand. Then, I told him that maybe this deal wasn't for him and that I had others that wanted to look at the note. I also told him that I didn't need his money and that it really didn't matter to me if he bought it or not. I then said, "however, if you are serious about this, then I need the note sale agreement on my desk within 30 minutes and the money wired to my account within 48 hours." The outcome of this was that he wired the money to me in less than 48 hours of this conversation.

The takeaway method works like gangbusters. But, you may ask why? Well, it's proven that we all are motivated by scarcity. In other words, if there is a product or service that is freely available, then the desire for that product or service is not that great. However, if there is a limit or some deadline to that product or service, then it will increase your desire to have the product or service. That's why you see so many deadlines with promotions. And this works the same way with your real estate transactions. See, once you're in negotiations, people already imagine having the money from the sale of their property or they've already imagined having that investment property added to their portfolio as they figure what their monthly cash flow will be. So once, you take what you're offering, the desire for the item increases. Whether it's the desire for you to buy the seller's home or whether you're selling your latest deal.

The point is this: the takeaway works. So, next time, your Real Estate negotiations come to a stand still or they're not progressing at the rate you'd like, then try the takeaway. If you don't see the value in using this one technique, then you need more help than I'll ever be able to offer.

About the author:

Derek Pierce, a 5 year, full time Real Estate Investor, shows you the exact strategies to his success in his Free Book: "How I Went From Corporate Guinea Pig To Real Estate Success". Get your copy by going to http://www.thereisecrets.com

 

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