Today we’re talking to 3 best selling authors about honing in on your negotiating skills to win any real estate deal. Chris Voss, former FBI negotiator, gives us his #1 strategy he uses in negotiations and how that applies to real estate. J Scott discusses the importance of building rapport, and how to get others to like and trust you. Lastly, Oren Klaff tells us his best tool for proper negotiation and describes how to be the most compelling person in a negotiation.
Chris Voss
- FBI hostage negotiator for 24 years
- Best selling author, Never Split the Difference
- Founder of the Black Swan Group, firm solves business communication problems with hostage negotiation strategies
- Based in Los Angeles, CA
- Say hi to him at http://blackswanltd.com/
- Episode #1244
J Scott
- Best selling author, The Book on Negotiating Real Estate
- Runs the website 123Flip.com, which provides insight into every aspect of his real estate business
- Based in Washington D.C.
- Say hi to him at www.123Flip.com
- Episode #1209
Oren Klaff
- Best selling author, Pitch Anything
- Based in Carlsbad, California
- Say hi to him at https://orenklaff.com/
- Episode #425
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TRANSCRIPTION
Theo Hicks: Hello Best Ever listeners. This is the Best Real Estate Investing Advice Ever Show. I’m Theo Hicks. Today, we are going to be going over three more clips, this time focused on how to win any negotiation. All three guests featured today have written best-selling books on how to improve your negotiation skills in real estate investing. The first guest we’ll be featuring is Chris Voss, who not only wrote a book about negotiating, but was an FBI hostage negotiator for 24 years. Here is what he had to say about winning in a negotiation.
Chris Voss: Tactical empathy is primarily knowing what emotional triggers would make people feel good. It’s learning how to say no without saying no. The book starts out with, in the first five pages, was when I first went up to Harvard Law School. I sit down with the head of the program on negotiation, Bob Mnookin, and I know what he’s angling for, because I can smell it, but he wants to do a roleplay with me, he wants to see if I’ve got any game. He says “If you negotiate with the kidnapper, what kind of strategies would you use?” I give him an answer that makes me sound weak and innocuous. I say, “I would just ask him open-ended questions, that’s all.” He goes “Really?” He kind of laughed. “Is that so?” I said “Yeah, I’m going to ask them open-ended questions.” Now, I got some ridiculously powerful open-ended questions.
But he doesn’t know that, because it sounds like something that’s stupid and simple, and he’s not impressed with it. It pretty much happens wherever I’m in a new environment. They go, “You’ve got to be kidding me. That would never work.” Fine. So he literally calls a couple of people in to watch; he gets a tape recorder, he looks at me and says, “Alright, Voss. We’ve got your kid. Give me a million dollars by tomorrow morning or we’ll kill your son. I got your son, I’m going to kill your son. Give me a million dollars.” I look at him and I say, “How am I supposed to do that?” Just like that. He kind of blinks a couple of times and he goes “No, no. We got your kid, you don’t understand. We need a million dollars or I’m going to kill you son.” Already, I’m listening and he doesn’t know, because his initial intention was to make a demand and get off the phone. I’ve already extended the conversation. He feels in charge, and the secret to gaining the upper hand in any negotiation is giving the other side the illusion of control, which is a point of that question that I just asked. I’ve triggered something that Daniel Kahneman calls deep thinking, which slows them down, it doesn’t make them feel threatened. But he doesn’t know that I’ve already boxed them in. Then I say “How do I know my son is alive? How am I supposed to agree to pay you if I don’t even know he’s alive? How am I supposed to pay you if I don’t know you’re going to let him go? How do I know you’re going to let him go?” Just one after another, after another. This goes on for a little while, but finally, one of the people watching says “Don’t let him do that to you.” He looks at her and he says, “Well, you try it.” She says, “I got your kid. A million dollars tomorrow morning.” I said, “How am I supposed to do that?” We start over again. “How am I supposed to do that?” is the number one way to say no in negotiations. You’ve got to say it deferentially, because what’s said with deference, you’d be amazed what you can get away with saying. The other side feels in control, but they don’t know you boxed them in.
Joe Fairless: Since we’re real estate investors on this show, let’s say we’re talking about a deal, and it’s a house worth $300,000. The seller says “I want $400,000.” I say “Well, how am I supposed to do that?” in a deferential, warm, and fuzzy way. Then they’ll say “Well, you get your checkbook and you write out $400,000. That’s how you’re supposed to do that.”
Chris Voss: Let’s roleplay. You think you know what they’re going to say? Let’s roleplay.
Joe Fairless: [laughs] Alright, which one do you want me to be?
Chris Voss: You’ll be the seller.
Joe Fairless: I’ll be the seller. So the house is $400,000.
Chris Voss: Alright, you know what? You’ve got an amazing house. You put your hopes and dreams in that house, you got cherished memories there. Cherished memories of the past, your hopes, and dreams of the future. It’s a beautiful house; it’s worth every penny of that, and it’s probably worth more than that. I’m really embarrassed, but how am I supposed to do that?
Joe Fairless: You write a check for $400,000 and that’s the amount you pay.
Chris Voss: And it’s worth it. I mean, it’s a beautiful house, but how am I supposed to do that?
Joe Fairless: [laughs] I would almost think you’re a little loony, because you keep repeating that; you just write a check and that’s it. How are you planning on buying it in the first place if you weren’t going to pay for it?
Chris Voss: Well, listen… How long do you want your house to stay on the market? Because no one can do that.
Joe Fairless: I’d like to get it sold pretty quickly.
Chris Voss: Yeah. Do you want to fail?
Joe Fairless: No, I don’t want to fail. That’s not an option.
Chris Voss: Your house is a fantastic house. I know that, from your perspective, it’s worth way more than what you’re asking. But it’s going to stay there as long as you’re asking that price. How long do you want it to stay there and not sell?
Joe Fairless: Well, I’d like to sell it pretty quickly, that’s for sure. I also would like the price that makes sense for me, which is the 400k.
Chris Voss: Yeah, you know — why me? I mean, you don’t even have to be in this conversation, because I’ve already let you know that I can’t do that, and you’re still talking to me, so it sounds like you got some sense that nobody’s going to pay you that.
Joe Fairless: Well, I don’t know. I guess it’s just something that I’m looking for. If it’s not a right fit for us, then I guess it’s not a right fit.
Chris Voss: You know what? You’ve been enormously generous with your time, enormously generous. I’m surprised that you’ve talked to me for this long at all. You know what I’d like to do – with your permission, I’d like to come back to you and talk if nobody else comes along.
Joe Fairless: Absolutely. Yeah, that sounds like a good next step.
Chris Voss: Right. Okay, so a couple of things here. First of all, you’re in your holodeck. Do you know what the holodeck is?
Joe Fairless: I have no idea.
Chris Voss: Star Trek. The holodeck is the room wherein our imagination we create whatever we want to have happen. There’s a little bit of difference between the conversation that you’re imagining might happen that you are in the middle of, and one that you’re actually in the middle of. So I didn’t make this “how am I supposed to do that” stuff up on the spur of the moment. Actually, what would have happened, how you would have answered if in fact you weren’t going to take anything other than 400k, instead of slowing down and saying it as slowly and gently as you would have – you would have said, “You know what? If you want the house, you’ll pay it.” Now, that’s an actual indicator when people are telling the truth. This is not 1,000% correlation, but it’s a real high correlation; you get a lot more direct. It’s a great way when somebody’s testifying in front of Congress when a congressional witness is being accused of nonsense that they haven’t committed. They look at the congressman and say “Because, Congressman, that’s the way it is.” As an FBI agent, I learned directness and impatience correlate strongly with truth telling.
You were role-playing a role that you weren’t feeling, and that’s why you didn’t say it that way.
Joe Fairless: Yup, I buy that, for sure.
Chris Voss: You go slower. So you’re a little out of character in the role. But let’s get back – what happens if the other side says what you said, only more directly? That’s your job as a negotiator, actually, to push you until you say, “Because if you want the house, you’re going to pay $400,000.” My job as a negotiator is not necessarily to make the deal. My job is to find out what the deal that’s there that could be made, and then decide if I want to make it, which in that case, I didn’t. But now, the most important thing for me to do is the last impression is a lasting impression. Let’s say that you’re selling a house, and the market says it’s worth 300k and you want 400k. And you’re genuinely not going to budge on 400k, which means your house isn’t going to sell. This also means that eventually, at some point in time, you’ve got to be willing to go back to somebody.
The last impression I left you with was nothing but respect and deference; the last impression was a lasting impression. I actually intentionally seated our next interaction. Instead of using the last word to say “Look, pal. You’re going to beg me to buy your house someday when you come to your senses.” Which is a mistake that a lot of people make in negotiations; when they know the other side’s crazy, they make the worst possible impression at the end, which is like “Alright, fine. You’re going to be begging me to buy this someday.” But instead of doing that, which is people say they’re cheap shots for last, we actually call this the Oprah rule. Oprah’s the toughest negotiator on the planet. Is that a reputation? No. I know someone who’s worked as Oprah Winfrey’s booker for 17 years, and everybody that works with Oprah, their overwhelming goal is everyone they interact with has to feel –especially at the very end– like they were treated exceptionally well, no matter how it went.
The Oprah rule is the last impression is a lasting impression. It sets the scene for my next impression. Let’s say you really are crazy not coming off 400k; I know that house is not going to sell because the market is not for 400k. But I do know that I’m going to get another crack at it as long as I treat you with respect and deference and empathy throughout. You notice, I use empathy every step of the way before I said anything.
Joe Fairless: Absolutely. I was soaked in empathy.
Chris Voss: Yeah. So what that does is it sets me up for the next interaction, which when I come back around, your memory is going to be like, “Yeah, that guy was not bad last time. He didn’t give me what I wanted, but he treated me really respectfully. I don’t like where I’m at, but since I don’t like where I’m at, the only people I’m going to deal with are the people that made the least bad impression on me last time around.”
Break: [00:10:50] – [00:12:51]
Joe Fairless: The takeaways I’ve gotten from this so far, to summarize, is to have empathy, and just soak the conversation with empathy, but also do it in a genuine way, versus you trying to apply it when it’s not natural for you.
Chris Voss: Yeah. There wasn’t anything that I said that was not utterly true. If you’re in the real estate industry and you’re selling a house, actually, a home seller has the exact same profile as the family member of a kidnap victim. The real bread and butter of kidnapping negotiations is how we handle the family members, because we would have the family members deal with the bad guys. Well, what do their child represent to their parents? Their cherished memories of the past, their hopes, and dreams for the future. What does the house represent to a seller? Cherished memories of the past, hopes, and dreams of the future. It’s the same psychological profile. That’s what I said when we were talking.
Empathy in the form of utter respect for how you actually feel about this; not agreeing with any of it but just recognizing it. That’s really empathy, it’s cognitive empathy, it’s a recognition. It’s not adopting it, but it’s just recognizing what you feel; it’s not sympathy. And I know what that profile looks like, or I can pick it up really fast in any given industry, because whatever anybody does in any sort of business, their hopes and dreams for the future are on the line at some point. All I’ve got to do is listen for it and respect it; that gives me a tremendous advantage.
Theo Hicks: If you want to learn more from Chris Voss about negotiating, check out his episode JF1244: FBI Negotiating Strategies for REI Deals #SkillSetSunday with Chris Voss. The second clip we’re going to feature today comes from J Scott. J Scott wrote a book on negotiating real estate called The Book on Negotiating Real Estate. Listen to what he had to say about how to win any negotiation.
J Scott: I think a lot of people, when they think about negotiation, they think about that part of the process where you’re haggling over price, you’re haggling over terms, one person’s saying, “Hey, I’ll give you this,” and the other one’s saying, “Well, how about that?” But what a lot of people don’t think about is that there’s a whole lot more that goes into negotiation before you get to that stage that determines if it’s going to come out successful. That’s all the preparation, that’s building rapport, that’s really building trust. We talked about building rapport – what we’re really talking about is building trust. Basically, building a relationship with another party so that they both trust you and like you, and frankly, they want to see you succeed.
People want to see other people that they like succeed. Even if they’re on the other side of the negotiating table from you, if somebody likes you, they’re going to want to help you. That’s what building rapport does – it builds that level of trust and it builds that level of likability so that the person that you’re competing against is actually also on your side.
Joe Fairless: Okay. And I think everyone will agree with you on that. We want to be liked by the other party. Let’s talk through the process that you recommend a Best Ever listener go through, or certain things they should do to accomplish the goal of building rapport and trust.
J Scott: Certainly. There are a lot of things. Anybody that’s dealt in psychology and persuasion techniques knows that there are a whole bunch of techniques. I’m not going to go into each of them, but they all basically revolve around the fact that other people want to be liked, they want to be accepted, they want to feel important. I like to say –and this is true whether you’re negotiating, whether you’re going out on a date, or whether you’re going into a job interview– the best way to build rapport with somebody is to let them talk about themselves. People love to talk about themselves. I like to say, if you go to a dinner party and you want to be the center of attention, all you have to do is ask a question and then say “That’s really interesting, tell me more.” If you keep saying that over and over, you’re going to find people just circling around you.
Everybody likes to talk about themselves. If you give people the opportunity to talk about themselves, they’re going to feel like you are doing them a favor, and they’re going to naturally congregate towards you, and they’re going to like you. Whether it’s negotiating, whether it’s going on a date, whether it’s, again, going on a job interview, ask the other person questions, let them talk about themselves, because they’re going to interpret that as something likable about you, if that makes sense.
Joe Fairless: Is this part of the preparation work that happens prior to going back and forth on the purchase price and the terms?
J Scott: There’s a lot of preparation that goes into it. There’s the preparation even before you meet the other person. If you get a phone call from a potential seller who says, “Hey, I want to sell my property at 123 Main Street.” You ask some basic questions and you get some information, it sounds like it could potentially be a good deal, you say, “Great, I’ll meet you there tomorrow at noon. I’ll take a look and we can talk.” What should you be doing between that moment and the next day when you actually meet the seller? There’s a whole bunch of preparation that goes on there. It starts at the highest level, which is what’s the market like? Is it a buyer’s market? Is it a seller’s market? That will give you some indication of how much leverage you have in that negotiation. What’s the inventory like? That tells you how much competition you have. Is that seller likely calling 30 other investors, or you’re the only phone call they’ve made?
And then investigating the neighborhood. Everything from where’s the house located? Is it on a busy street? Is it near an airport? Are there train tracks running behind it? And then even down to the house level. Drive by the house before you meet the seller. Does the neighbor have chickens living in the yard? Does the neighbor have loud barking dogs? Go in the middle of the night. Is there a lot of activity in the middle of the night? Are people out and about? Is there drug activity on the street? Stuff like that. That will give you the information you need so that when you go and start talking to the seller about actually buying the property, you know what you’re buying, you know how much it’s worth, and you also know what type of leverage you have over the seller.
For example, we once bought a property where there was a train running through the backyard. We were looking at Google Maps and we saw the train tracks. We did some investigation and found that the train only runs basically in the middle of the night, 3:00 am every night, past the back of that house.
If we wouldn’t have done that investigation, we would have had no idea that there was a train that ran behind the house. Then when we went to talk to the seller, we were able to say “Hey, we know there’s a train that runs behind the house every night at 3:00 am. It’s going to make it more difficult for us to sell the property after we fix it up. How are you going to compensate us for that negative aspect of your house?” Doing that type of research gave us some leverage to go to the seller and say, “Hey, we know there’s something negative about the house. You’re going to have to compensate us for that. You’re going to have to give us some concession for that negative.” That type of research allows you to have a discussion with the seller, that puts all the information on the table and allows you to get concessions, and allows you to get compensation for the negatives.
Joe Fairless: So you just talked about the actual opportunity. But then what about the person? How do you prepare for being liked, accepted, or having them like you, them feeling accepted and important so that you do build that rapport and they want you to succeed?
J Scott: There’s a whole bunch of ways. A lot of people look at negotiation as it’s all about business. What I like to say is that it’s not about business, it really is personal. Business in itself is personal. The biggest reason somebody is going to do something nice for somebody else is because they have a personal relationship with that person. And whether that relationship is we’ve been friends since high school, or we’ve worked together for the last 10 years, or they came into my house yesterday and we had a great conversation, they were really nice – if you have that relationship, people are going to want to do something in reciprocation. It doesn’t necessarily mean you have to be best friends for the last 20 years; just sitting down at a kitchen table, having a cup of coffee, talking about kids, talking about where you went to school, where you worked, and finding things that you have in common can go a long way towards building a basis for a relationship that will make the entire negotiation process a lot easier.
In terms of specific tips, there are a few things that I like to say. One, there are a lot of investors who like to negotiate over the phone or over text messages because it’s easier. You don’t have to have a hard conversation with the seller or with a buyer face to face. But in actuality, it’s just as difficult for the other party. If you’re going to throw out a lowball offer, it’s really hard to do that face to face. But by the same token, if a seller gets a lowball offer face to face, it’s hard for them to look you in the eye and say, “Absolutely not.” It’s easy for them to say that’s ridiculous over text, over email, or even over the phone. But when you’re face to face, it’s hard for you to throw out a low offer, but it’s also hard for the other person to reject that offer. So getting face to face really is an important part of the process. It gives you some leverage, but again, it allows you to build that rapport. If you’re talking to somebody over the phone and you never see them, you’re less likely to feel attached to them in some personal way than if you’re sitting at their kitchen table or at a coffee table, drinking a cup of coffee, and talking about family.
I talked a little bit about asking questions and talking about them. People like to talk about themselves; doing little things for people. So you mentioned a book that we just released on negotiating and I talk a lot about what are called concessions. Concessions are the whole pot filled with things that make up the deal. You give some, and you take some, and you divvy up the concessions. One thing you can do that really can help the negotiation is you make a concession up front, so you give something. People have this innate need to reciprocate something that’s been given to them. I’m going to give you an example. Have you ever received, in the mail, a request for a donation from some company and they include a little sheet of return address labels, or even a nickel? I’ve started seeing this, they send literally a nickel. There’s a reason they do that. They do that because they know you’ve now received something, you have this innate need to now reciprocate. What they found is, they can literally hand you money and it’s going to be beneficial for them because they know that they’re going to get something much bigger in return.
That little idea of “I gave you a gift, now I expect something in return” is huge. So if you want to build what’s called capital with a buyer or seller, one great thing you can do is you can give a little concession. Buy them a cup of coffee, meet them at a restaurant, pick up the check, go to their house with a little gift. All of these things will basically, not just ingratiate them to you, but also provide the sense of obligation back to you. That’s not something I invented, that’s actually a well-known psychological product of persuasion. But it’s very useful when working with buyers and sellers in the real estate world. These little things, these little tips can add up and will really tip the scales of leverage in your favor in the negotiation.
Theo Hicks: J’s clip focused on three things. One, how to build rapport, a.k.a. trust, how to prepare for a negotiation by finding leverage, and then also how to get the other party to like you. He gave some tips about talking face to face, as well as the Law of Reciprocity by giving up concessions upfront. If you want to learn more from J on negotiating, check out his full episode, episode JF1209: The Interview On Negotiating Real Estate #SkillSetSunday with J Scott.
Break: [00:25:13] – [00:25:50]
Theo Hicks: The third and final clip comes from Oren Klaff, who wrote the best-selling book Pitch Anything. Here is what he had to say about negotiating.
Oren Klaff: The quick review, obviously, on Pitch Anything was that information goes not from your mouth, your neocortex, the smart, linguistic, capable part of your mind, into the smart, linguistic capable mind of the other person. We talked about that last time. It just goes into the crocodile brain of the other person, and that brain does not understand ROI, IRR, fund development, real estate economics, and rising interest rates or anything of that. The crocodile brain only understands, “Hey, somebody is talking, somebody is moving, I see something happening. What should I do? Is this something I should eat? Is this something I should mate with? Is this something I should kill?” So there’s a huge disconnecting in what you’re trying to explain to someone and what they’re actually hearing.
The User’s Guide to Power goes further beyond the fundamentals of Pitch Anything, to think about how to communicate something to someone so they understand it, appreciate it, want it, come over to your side, and buy it. Joe, what are you seeing out there? What’s the number one problem that people are having today that you think they need to overcome? Communication, influence, pitching, that kind of thing.
Joe Fairless: I would say with social media, it tends to be about me, me, me, and not about the customer. It tends to be a lot of beating the chest and not a lot of talking about what is most interesting to the recipients.
Oren Klaff: We have a whole chapter on “Be compelling.” Some of the things in that is — really the word is context. People come in and they say, “Hey, I’d like to sell you this, I’d like you to invest on my real estate, I’d like to give you this six and a half percent current pay with a 20% IRR.” Or “I’d like to provide you 12% hard money”, or anything like that. Is that the language of the people in your podcast?
Joe Fairless: Yeah, that’s language. You got it.
Oren Klaff: Okay. So we have the lingua franca of real estate finance. But the sense is how well do you really know the world of the buyer? I like to think about how can you put what you’re selling in the context of their understanding? How do they appreciate that this isn’t just a cold call, that this isn’t just a package sale, that you’re just not trying to move some product, you’re not just looking for an investor? How do they know that you understand what they’re looking for and that you really understand the topic? When you provide context, then you’re compelling to someone. Context is not, “Hey, I have a multifamily in Infill Houston that’s got a 4% current pay. We’re going to improve it, get it up to 8% current pay over three years, and then exit at a seven-cap assumption for a 20% IRR.” That’s information, but it’s not compelling.
Joe Fairless: Compelling or context? Or is that the same thing?
Oren Klaff: It’s the same thing. When you can put things in the context of what is happening today, where things are likely to go, where are the danger areas, where are the green fields, and why, and you can put that in context in a way that is impartial and doesn’t totally 100% just support your position in the things you’re selling, then that starts to become compelling.
Joe Fairless: Will you go through an example just to bring this full circle?
Oren Klaff: Sure. In the last three years, you could buy multifamily in Wichita, in downtown Manhattan, on the Canadian border, basically underwater, 300 feet off the coast of California, and you’d get a 6% current pay, a 12% ROI, and a 20% IRR. But if you look forward, once interest rates are going up, sellers are slowing down the pace of selling, inventory is increasing, it’s no longer the case that every multifamily asset is going to do well.
When we look at the country, here’s what we see changing, and where the red flag areas are, and what is still green, and what looks emerging that’s super interesting. So we think that if you work a little harder and you focus on the areas where it’s getting super interesting, even though they’re not obvious, you can do really well. Do we have those? Maybe. Sometimes. We’d like to get them. But I think it’s first best to understand the best thing to go for, and then we can take a look at if we have it or not. People find it compelling when you can step back and be that third party, impartial advisor, or provide them information that is not 100% necessarily in your favor.
Joe Fairless: So you tell them a story?
Oren Klaff: Tell them a story… I think that’s a bit of a simplification. But how are things changing? Who does that benefit? Who does that not benefit? How do you get into the area of change that’s better, safe, and growing? What’s changing? Who’s going to win? Who’s going to lose? Everybody finds that person compelling. If you go to any Fortune 500 company, who’s the most important person in the company? The CEO, maybe. Lead design engineer, maybe. I think it’s the sales manager, Vice President of sales, probably, maybe. But if you drill down, it’s the guy who knows what sales are going to be at the end of the quarter. The CEO, the COO, the CFO, VP of sales all want to hang around with that guy. He’s compelling to be around. By the way, the guy knows what sales are going to be, accurately, at the end of the first half, third quarter, or at the end of the year. That guy who knows what is going to happen most likely in the future and why, is the most interesting, compelling, desirable, want to be hung around person in the entire company.
Joe Fairless: Got it. That’s helpful, because as real estate investors, we’re likely looking for partners. It just lends itself for partnering up. And we want to be able to attract partners, whether we’re fixing flippers, multifamily investors, storage units, or whatever. So the components for having that compelling context would be –what I wrote down when you were talking is “How are things changing? Who will win? Who will lose? What we’ll do?” Did I capture that accurately?
Oren Klaff: Yeah. How are things changing? What are the elements that are actually changing in a real way? Interpret those. Here are the facts. Here’s the interpretation of the facts, and then project how that is going to affect people like the buyer. Think about a blood test or even one of these genetic tests at 23andMe, Pathway, or something like that.
Joe Fairless: I tried, but didn’t give enough spit and the results were inconclusive.
Oren Klaff: Well, let me get my little boy over to your house. He can spit like nine feet and hit you in the side of the head [unintelligible [00:33:01].03] four-year-old with scuba spit. Anyway, enough of that. So I worked in one of those companies; worked for them, helped them, I owned stock or equity in one of them… So when you get the genetic data, that’s not what’s actually valuable. It’s the interpretation. What diseases are you likely to get? Of the diseases that you’re likely to get, what would be the preventative courses of action? If you do get that disease, what is most likely to be the treatment that work for you? That’s what’s valuable, not the genetic data.
Joe Fairless: Yeah, because you’re taking action on the [unintelligible [00:33:41].23]
Oren Klaff: That is, to me, what is changing? Why is that change important? What should you do? Because I think what happens is — when we send real estate proposals, it’s “Here’s what we have and this is what you should do. Invest.” It’s ignorant; that route misses the whole step of what’s changing, how well do you understand that change, and how well are you able to interpret what’s happening in the world for me, the buyer, the investor? I think if I could see guys doing that route more often, I think they’d be closing a lot more equity. That is another thing; equity is the thing we don’t care about, and they’d be able to put their hands in a lot more equity if they put it in context of change.
Theo Hicks: Oren focuses on how to be compelling during a negotiation. Making sure that you are putting whatever you’re selling in the context of not only the other person’s understanding, but also in the context of what is happening today. How are things changing today and how that’s going to impact the future. The number one tool for proper negotiation is your ability to not just focus on the facts and data, but to properly interpret those facts and data.
Overall, the three tips that we got today, first from FBI hostage negotiator, Chris Voss, who talked about the power of tactical and cognitive empathy, as well as the last impression in a negotiation. J Scott, the author of the book on negotiating real estate taught us how to build a rapport, how to prepare for a negotiation, and how to get the other person to like you in a negotiation.
Lastly, Oren Klaff, the author of Pitch Anything, taught us how to pitch and influence our passive investors, business partners, buyers, and sellers, by being compelling, which involves being able to interpret facts, data, what’s happening today, and putting it in the context of the other person’s understanding.
That concludes this episode with more than three tips, because a couple of the guests, the clips had more than one tip on how to win more negotiations. Make sure you check out those full episodes that I mentioned earlier. Thank you for tuning in today. Have a Best Ever day and we’ll talk to you tomorrow.
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