Page 126 - Trump University Commercial Real Estate 101
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TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101



                       Agree/Repeat

                     Here is a very powerful pattern you can use in your negotiations. It has
                   four steps and incorporates some of what we ’ ve already discussed:
                           Step 1: Agree/Repeat.  When you ’ re talking with a seller, nod or
                   otherwise show agreement with what she says and repeat it in a natural
                   fashion. That shows you are listening. For example, the seller says:
                     “ I must get  $ 1 million for my property. ”  You say,  “ Okay, I understand
                   that you must get  $ 1 million for your property. ”
                           Step 2: Answer.  Respond to the seller ’ s point. You may need to
                   respond  “ In my review of the profi t - and - loss statements, I see that the
                   property at an 8 cap rate is valued closer to  $ 940,000. ”
                           Step 3: Ask a Closing Question.  You then ask:  “ If I could show
                   you a way that I could pay  $ 960,000 but also provide you with a tax
                   shelter and a monthly annuity, could we move ahead to start the paper-
                   work? ”  Now you  shut up and wait for the seller ’ s response, because . . .
                           Step 4: He Who Speaks First, Loses.  There is a pause, and
                   finally the seller asks,  “ How would that work? ”

                         You ’ ve just scored a negotiating victory. You ’ re one step closer to
                   scoring the deal.
                         In case you ’ re wondering: The tax shelter and monthly annuity
                   would come from the second mortgage. The seller would not be taxed
                   on the mortgage amount until he receives the money, and the annuity
                   would come in the form of mortgage payments each month.


                       Small Moves

                     This is a splendid negotiating tactic. You see, many people fall into the
                   trap of  splitting the difference.  Every time they counter an offer, they
                   split the difference down the middle. I love negotiating with these
                   people.
                         Instead, when you begin to negotiate price, always make smaller
                   moves in the amount of your counteroffer.
                         Let ’ s say the seller has a property on the market for  $ 1 million.

                   Your strike price is  $ 965,000. You set your first offer at  $ 910,000.

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