Page 116 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

A MATEUR M ISTAKE (C ONTINUED)

That experience taught me something else: If I do want to offer full
price in a competitive situation where there are other bidders, I should
throw in some other condition that the seller can say “ no ” to.
For instance, I should have offered $ 2.2 million, but requested that
the seller take back a second mortgage at ten percent. I didn ’ t need the
second mortgage but it would allow the seller to say “ no. ” I ’ d cave in,
and we ’ d be set at $ 2.2 million.
I could instead have requested that the seller pay $ 40,000 in clos-
ing costs, or that furniture be left behind. Always be prepared with a
couple of these add - ons .
Typically, you should start your negotiations at ten percent below your
strike price . That ’ s the maximum price you will pay for the property.
Oh, and if a broker asks “ What ’ s your strike price? ” tell him it ’ s none of
his business, but say it with a smile! Hold your cards close to your chest.

The best place to negotiate is in your offi ce . That will give you the
advantage. The worst place is the seller ’ s home or office because that

person will have the advantage.
If they won ’ t meet at your place of business — or if you ’ re working
out of your basement — then at least meet in a neutral location. A coffee
shop, restaurant, or at the property itself are all acceptable locations.
Always look to collect small advantages when you negotiate. Here
are a couple:
Sit with your back to the window when you can. This sometimes
makes it harder for the person to watch your body language closely; it
also can give you a halo effect.
Sit at a rounded table and sit at 90 degrees to each other instead of
on opposite sides of the table.
Have everything you will use during your negotiations on the table
when you start . Do not introduce anything new during the process, or it
can confuse the other party and take away any momentum you ’ ve built.

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