Page 63 - Trump University Commercial Real Estate 101

Ho w to Become a Deal Magnet

Questions 1 & 2: “ How Much Are You Asking for Your Property? ” . . .

Followed Quickly by “ How Did You Determine That Price? ”

If sellers say they are looking for the current market price, you simply
explain that you are an investor. That means you can act very quickly,
but need to buy below market price so you can resell at the market.
Why would anyone sell for a below - market price? Trust me — it
happens all the time. Many people just want to be rid of a problem pro-
perty that ’ s been plaguing them for a long time. They ’ re psychologically
done with that property and now want to be physically done with it.
Other people are in a big rush because they ’ re moving to a new city,
or need cash quickly, or a nasty divorce just happened. Whatever the
reason, you want to be that buyer at the right place at the right time.
When you ask “ How did you determine that price? ” a few may
say: “ Look, Mister, that ’ s what I paid for it and I just want my money
back. ” This would be a promising response from your perspective.
Are you taking advantage of these people? No. Remember, they
called you. You ’ re helping them out of a tough situation. In fact, they
will usually thank you afterwards. In my experience, most sellers don ’ t
actually lose money in my transactions. They instead are selling for
below market, but their equity in the property allows them to do that.

Question 3: How Fast Are You Looking to Sell?

If they say they have time and are in no big hurry, this usually means
they want to put their property on the market and let investors
compete for it. These are not profitable deals. Rarely have I won in a sit-

uation when I competed directly against other investors. That ’ s because
other investors are usually willing to pay more for a property than I am.
Tell the seller: “ I can close very quickly and work well with sellers
who need to close quickly. . . . But if you have time to market your
property to the highest bidder, then I probably am not your buyer. Is
this your situation? ”
You ’ ll get the answer you need after you ask that question.

43

10/14/08 10:39:22 AM
c03.indd 43 10/14/08 10:39:22 AM
c03.indd 43