Thursday, October 25, 2007

Transactional Engineering 101

As an educated investor you should have better negotiation skills than an average home buyer. So a really simple way to create income for you is to assist people buying their own home. There are two "obvious" ways to do this.

1. If someone already has a property under contract and they are still conditional, you could offer to negotiate the purchase further and share any savings between the two of you. Your function is to explore any opportunities to negotiate the price down.

Given that this was an emotional buyer probably it may well be that they have simply paid too much so a Valuation of the property would be a good place to start. If I can negotiate the deal by a further ten thousand dollars which would be a walk in the park 90% of the time, you've just made 5 thousand dollars!

2. When someone is looking to buy a home get them to go and find the house they want but they must not enter into negotiations to purchase. They simply come to you with what they are happy to pay for it. I am working on several of these at the moment and there is no risk. Find what someone wants and give it to them.

Almost all of you would know someone who is looking to purchase a property, offer to help them find it. You can contemporaneously settle or assign.

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