When structuring a creative purchase or sale, the first task is to determine the needs of the buyer or seller, as the case may be. This is done by slow, patient inquiry that takes place only after the parties are comfortable with each other.Most people are motivated, directly or indirectly, by an emotional response to fear or greed; or a combination of these.
If you've taken the time and trouble to discover true motivation, whether fear or greed, then you can channel your creative efforts to allow the other party to meet as many of his needs as possible at a cost that will enable you to meet as many of your needs as possible.
The negotiating mode that has the most potential for success is called the”cooperative mode”. To get into this mode, a buyer or seller might say, “We're too far away from an agreement as it now stands,but if we are willing to spend some time trying to work the details out, we might be able to make a deal.”
One way to visualize this situation is to imagine the parties seated on the same side of the table trying to work out a deal that meets their needs rather than seated across from each other lobbing pot shots trying to score negotiating points at the others' expense.
If a seller needs cash, and is willing to accept a lower price to get it, an easy remedy is for me to sign a non-recourse note secured solely by the property in question with terms that will enable the note to be sold to an investor to get the cash he needs. If he doesn't know how to find a Note buyer, I'll help him find one. This saves me the need for borrowing, and gives the seller the cash he needs.
If you're going to be able to do this, you've got to pin down you own minimum requirements for a transaction. For example, I won't personally guarantee repayment of a promissory Note. If the property alone isn't adequate security, I might add another property to the mortgage, but I won't place myself or my assets at risk to buy it If I see real profit potential, I would prefer to Option it, or lease/Option it rather than to buy it with full loan liability. That way I don't jeopardize my prior successes with what could be a mistake about that the future might bring.
Hopefully, this forward has opened your mind a little, and helped you see how important being able to buy or sell property without cash or credit can be to your financial future.
~
You can learn the art of creative deal making with Jack Miller's Online Seminar, ART OF THE DEAL. It will teach you how to structure financing without cash or credit and without risks. You'll get instant access to 14 videos, 14 audios plus a workbook — all filled with creative ideas. SEE DETAILS HERE
