Joe Hernandez breaks down real estate negotiation tactics, including how to structure opening offers and deal terms for better leverage. Recorded at Avalanche Lake in Glacier National Park.
Today we are here at Glacier National Park. We are at Avalanche Lake. And I know there is no way that this is not the first ever podcast talking about Morby methods while in the actual lake. Actually take off this active track here in the actual lake. I am about. Not quite halfway, but I'm, I'm a good portion of, of the way in the lake. And so today we're going to talk about how to negotiate morbi methods. This is going to be extremely valuable video that you will probably never watch because we're 40 seconds in and you guys can't pay attention longer than three and a half seconds. My YouTube watch time tells me that. Or maybe just my content sucks, I don't know. But let's get straight into the negotiation tips. Would you guys want to see me walk out further as I'm doing this and potentially watch me trip? Okay, I'm like knee deep right now in this. Maybe, maybe this is not a good idea. Okay. Negotiation tips. Never start out with your max. What do I mean by that? Your max offer. So if your numbers tell you that the max cash a seller can be 60%, don't start with 60% because when you have to come back to the seller and tell them that you want a low monthly payment, you have no bargaining chips left. When you come in with something much lower in a much lower starting point, let's say 40% cash to seller, and then you ask for a low monthly payment and they balk at it, which they will, you can then negotiate or renegotiate, restructure the deal and say, hey, how about I increase cash to sell her to 50% but I need my monthly payment, right? So you give yourself room from the beginning. Don't go to your max number. Start at 40%, work your way up to 50%. If you need to work your way up to 60%, make the focus on your low monthly payment. What I have seen is a lot of times you need a low monthly payment of a hundred dollars. I mean that's just the reality of a single family property. That's what you need for cash flow. This is not correct. So do not start at your max allowable offer. So what happens when you get. You give 40%, right? I start out with 40% cash to seller. Just saying I start out with 10 year maturity date on my balloon knowing that I'm willing to. Knowing that I'm willing to come down to seven years, eight years. I mean if I can get nine years, that's great. But I start off at 10. Giving the seller room to come down. Giving the seller room to come down. It's all about the art of negotiation. I want to make them feel like they are winning. Holy cow, this guy's brave. My man, Joe. Let's go. Let's go. Love it, kid. Or need. You want to make sure the seller feels like they're winning. So when you're constantly conceding in terms, you know, lowering the maturity date, increasing cash, a seller adjusting a monthly payment terms, all of that stuff is giving them wins, wins, wins, wins, wins, Right? So when you go back to the table and you ask for that really low monthly payment, they're willing to give it to you because you have been negotiating the entire time. I don't know what's going on behind me, bro. This is like, the best podcast ever. 40%. Yeah, 40% cash to seller. That's your starting point. And if they balk at your low monthly payment, that's when you can go and renegotiate and say, hey, how about I give you more cash to seller and I'll give you 50%. Let's take the delta between your monthly payment of what you wanted and your $100 monthly payment. And how about I give that to you upfront at closing all while you were already willing to give that 50% in the beginning, you just didn't start at that point. You have any. Any other tips that'd be valuable? I love it. Yeah. The more we met this, he's got to unlock now. So if the movie Method Mundo's your gun, and if you want a mud band, listen to me. Make sure you come to my next workshop. We're going to be teaching people how to do mud baths. It's going to be fantastic. You guys will be doing it. It won't be me, but I'll be teaching you. And we're again, we're here at Glacier National Park. This is a true gangster right here. All right, everybody, this wraps up the best. We're not normal. We didn't do normal. Where's Pace at? Where's Pace at? He didn't. He didn't make it today. You're representing. All right, we're holding down for O.C. glacier National Park. He is. All right. Where's he at? Oh, okay, I see Bigfoot. All right, everyone, that wraps up the first ever morbid method podcast at Glacier national park. In the water at Glacier National Park. See you guys.
