Cash Flow Cliff Notes
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Unlock the Seller’s Motivation for Better Deals
In a competitive market for cash-flowing assets, understanding the seller’s motivations can give you a significant advantage. To stand out from the crowd, take the time to sit down with the seller and ask probing questions to uncover their reasons for selling.
Buyer: Why would you want to sell such a beautiful house?
Seller: Oh, we love it but it’s just too much to maintain.
Buyer: I can understand, the roof has been a big headache on my house. What’s been your biggest headache?
Seller: Oh my roof is great, I can recommend a great roofer for you. My tenants have been my biggest issue. I don’t want to scare them away because I hate turnover, but I just can’t get enough rent out of them. They are great people that I want to help, you know?
Buyer: I know what you mean, turnover takes a lot of work. What would you do to the house if you could get higher rent?
Seller: Oh, I would love to have the money to change out that leaky hot water heater.
You see by asking “why” questions, the seller does not get defensive and instead tells you what their pain point is. Keep asking “why” questions and you can find out how to easily make this property cash flow.
While big institutions may rely on throwing more money at a property, you can gain a major advantage by developing a personal relationship with the seller. By empathetically listening and understanding their emotional and family needs, you create a connection that sets you apart.
Stay tuned for more valuable strategies on building rapport with sellers and unlocking better real estate deals.
Wishing you successful negotiations,
Mike Marino, The Cash Flow Guys