In this week’s episode, we continue discussing the top 23 questions that you should be asking every seller. Why a seller is selling can provide clues into the level of motivation a seller has. By being able to gauge the seller’s motivation you can better access how to negotiate (or if you should even bother negotiating ) a great deal.
I am a huge believer in win/win or no deal as a mantra, the only way to structure a win/win deal is to fully understand the seller’s situation so your offer will heal their pain. A seller with no pain needs to wait for a retail buyer who falls in love with the view or the living room drapes. You as an investor need not bother making offers to unmotivated sellers, its a complete waste of your time and their time.
Asking about the acceptance of “payments for equity” instead of seller financing or seller funding is a much better way to discuss this sometimes uncomfortable topic. Please understand that this topic does not need to be uncomfortable, yet we sometimes tend to try to predict the future thus having preconceived notions over how a seller will react. Its these preconceived notions that result in the discomfort surrounding this line of questioning.
As Larry Harbolt teaches us, “Seller’s don’t want cash, they want what the cash will do for them.”