Negotiations By The Slice

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Topics: Buying & Selling, Negotiating

Negotiation is at the heart of business; in fact, negotium is Latin for business. It is often what makes the difference between a good deal and a fantastic deal, or between a profit and a loss, but as the foregoing proverb points out, in it most effective form, it is invisible. 

There’s an old Italian proverb that more or less says a man can steal a whole loaf of bread if he does it a slice at a time. This incorporates two principles:          
 
1. It is very unlikely that anybody will ever miss something that small. 
 
2. Nobody is likely to be very upset over the loss of a small slice of bread.

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Three Pre-foreclosure Opportunities

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Topics: Buying & Selling, Foreclosures
Foreclosure Investing


There are three opportunities with pre-foreclosures.  The worst people to deal with are dead beats who are going to ride out the foreclosure and refuse to move out after the property has been bought either before or at sale.    The best people to deal with are families with a large equity and otherwise good credit record who feel terrible about not being able to make payments.  
  

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Should You Negotiate For Price Or Terms?

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Topics: Buying & Selling, Negotiating


When negotiating for price or terms, there is no incorrect answer. It all depends upon the viewpoint of the people involved. Who's buying? Who's selling? Why? What are their objectives? How much cash must actually be required to make the transaction work for all parties? What are their income levels and tax brackets? What are their ages? How sophisticated are they? What has their previous financial experience been? What are their security needs? How motivated are they? Why?

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Negotiating Terms By Offering Solutions To A Seller

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Topics: Buying & Selling


If you don't provide an acceptable solution, you will not be able to negotiate a deal. But the more thoroughly you understand the problem the more probable that you'll be able to find a solution. The most interesting part of this process is that other buyers can't compete effectively once the seller sees that you're trying to solve his personal problem while acquiring his property.

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Making Money From Home With Nothing Down And Nothing A Month

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Topics: Buying & Selling

 
At one time, working from home I owned 166 single family houses that I had bought with a minimum down payment by taking title subject to the existing financing. From the first house I bought, I used only seller financing and avoided negative cash flow problems primarily because I couldn’t afford to take anything out of my meager earnings to support it. That means that I had to find ways to buy highly leveraged houses that could support themselves with a little left over for me.  

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Pyramiding Equities Tax Free

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Topics: Asset Protection, Buying & Selling


 Last time we were trying to solve the riddle of being able to buy houses at today’s prices and rents that would be feasible as long term rental investments that would generate current positive cash flow. I think trading in one house for another is the solution, but it’s almost impossible to find two people who can make a straight property swap.

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When To Start Buying Houses

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Topics: Buying & Selling


  As with most jobs, you can find a thousand reasons to put off starting to buy houses until another time, but that would be a costly mistake. Why? Because you'll lose all the time that your capital could be compounding. Using a $100,000 house (adjust the value to your own area) maybe I can give you an example of why time is so precious when building an estate.

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Recycling Cash and Credit to Build Equity Fast

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Topics: Buying & Selling



  The problem with buying houses to hold long term is that it consumes a lot of cash and credit and requires years to build wealth. One enterprising fellow found a way to get around this problem by recycling his cash in and out of houses on a monthly basis while he left his un-sold equity behind to continue to grow and compound at unbelievable rates of yield. Here’s what he did:

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