Negotiations are with Sellers

TRANSCRIPTION

Hey, guys! This is Terry Hale, just wanted to get a quick minute and just tell something
To you here because I just got off a call and it was with a broker. This guy’s name is Stu.
And Stu sat there and tried to negotiate the deal with me. And I told him I said,
“Stu, with all due respect, Sir, look, negotiations are not with brokers. They’re with sellers.”
And I want you guys to understand this, when you’re on the phone, although we love brokers,
We want to make sure that we’re doing business with brokers. It’s great to use brokers
In these transactions because they, first off, have a fiduciary duty to present all offers.
So we can make lowball offers. We can make offers that are creative with seller financing,
Great terms, lease options, all different types of ways to pursue these properties.
And get super creative. And remember the type of projects that we’re looking at –
Brokers, they’re super eager to sell because they’re not cash flowing at their highest and best use.
But just remember not to negotiate out there with these actual brokers, save it for the sellers.
Put yourself in a key position to warm up to the brokers let them know that
After you reposition the property, you’d love to give the business back to them
And have them service you and sell it at a better Cap Rate, meaning at its highest and best use.
So now they’re going to make money twice. They’re going to make money once,
When they sell it to you creatively. And then after you reposition it and you’re making all your money,
You give it back to them. They make you more money, but in turn, now they’re being fed.
And it’s a great way to dangle a carrot. Get brokers comfortable with you. Remember,
We respect these people, and they guard their time so don’t get frustrated
If they’re not giving you the time of day they guard their time from tire kickers.
So do yourself a favor, keep the negotiations for the sellers. I hope you enjoyed this segment.
If you dig it, great! Cick it. Click the link or just visit https://terryhale.com/
And I look forward to engaging with you guys real soon. Take care