This is part of a book I wrote and a taste of one real estate investing guide DVDs done by me. I will be republishing the majority of my book on my active rain blog. If you are interest in DVD or Seminar I have done on Real Estate Investing you can go to http://stores.ebay.com/Real-Estate-Investing-Guide
If you don’t ask, you won’t get. This is an important thing to remember when purchasing property. It is basic human nature to not want to make another person mad, upset or insulted. It is also basic human nature to shy away from rejection. However, to be successful in the negotiation and purchasing of property you will have to overcome your fear of rejection.
You will not be making the seller of property an offer to make him money; you are making the offer to make yourself money. Obviously, the goal of any negotiation should be achieving your goals, but if both parties can win, the negotiation will certainly go much better. But, you must negotiate a rational offer to be successful.
I'm not trying to suggest that you should be brutal but firmness is a must. When you have determined what you are willing to pay, be firm and stick to it.
The following are the most common problems investors get themselves into when purchasing property.
1. Paying more than is wise for a property. This happens as a result of emotional attachment to a property, failure to properly investigate the value of a property, or negotiating with yourself prior to ever making an offer.
2. Going into the offering process without having all of the facts. Be sure to know what the costs are going to be for repairs, the after repaired value, etc.
3. Undercapitalization. Don't get into a project that you don't know how to pay for, you'll only lose. Know how much it's going to cost and where the money is coming from to pay for it.
4. Don't make offers unless you're fully prepared to buy.
5. Don't lose good deals by over-analyzing or procrastination. If you find a good deal, move and move quickly. It won't wait for you.
It all boils down to treating each house purchase as a pure business decision based on the dollars and sense (common sense) of each deal. You're only doing this to make money. I believe you can have fun at this too, but that should always be a secondary concern.
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