Deals aren't found, they're made

Christian Di Stasio • Mar 26, 2020

Deals aren't found, they're made

How many times have you heard a Real Estate Agent tell you they are going to find you a deal? If good deals were just lying around on the side of the road or growing from trees, the value of the deal isn't there.  
Sure, you can find a house to flip on your local MLS or a property that needs some TLC and make a few bucks, but that's not the deal I'm referring to. 

The deals I'm referring to can't be found, they're made. All good deals start with the Realtor and their ability to see and negotiate a deal. 

Good deals are not always monetary in nature, but equally valuable.  

Making a deal is very much an art form and like a master ninja, it takes a lot of practice, failure and wins to be a skillful negotiator. 



Deals come in all forms

Valuable deals come in all forms, a deal that puts more Money in a seller or buyers pocket is obvisouly favorable for most. It takes a Realtor with good negotiation skills and understanding of how to build a business case that leverages the current market to successfully create a great deal. Whether you're purchasing an investment property, condo or home, the bulk of all great deals starts with your purchase price. For many, all your money or equity is made (or lost) in the purchase (or sale) of your new property. Another good example of a deal is Time. We all know Time is money. I recently created a valuable deal for a client of mine, who was purchasing a home in cash and was in a lease and couldn't close for four months. The sellers home was contingent on them finding a new home and needed to close on both homes in the same day in order to pay for their new home. Do you see the problem? Can you see the deal?

LETS BREAK IT DOWN 
PROBLEM:

The buyers can't close for four months due to an existing lease. Sellers need to find a home and get the sellers of that home to agree to close in four months. Then coordinate three closings that directly fund another. The likelyhood of success in this transaction is difficult, from a timing perspective near impossible the first go around...


SOLUTION:

The key to a good deal.. it must be mutually beneficial. 

Because my clients were paying cash I asked them to identify what that money was worth over a three month period. (instead of sitting in their investment account while they wait out the four months) Lets say $15,000. I presented the sellers with the following option. We can close in 30 days and provide the funding for the sellers to purchase their new home be able to close in a comfortable and reasonable timeframe.Additionally I asked them to agree to a "Use and Occupancy" agreement for a two month period, paying my clients $15,000 or $7,500 a month which represents the interest they would of made on that money. (The home was a large 11,000 sqft ) Making my clients whole and allowing the funding for the extra two months of the lease they still had pending.


THE DEAL:

SELLERS: Sell and close in 30 days. Received a cash purchase and funding for their new home, plus remain comfortably in their home for two months while they look for a new house. 


BUYERS: Lock up the purchase of their new home within 30 days, receives funding for their remaining lease buyout and are able to move into their new home with in 60 days. (Not to mention the appraisal of their new home was significantly higher than the purchase price, as I negotiated that price down $200,000 under asking)


THE BOTTOM LINE

When you're purchasing real estate make sure you use a Realtor with good business acumen, good communication and negotiation skills. A Realtor that solves problems and can see the solution when most can not. Having a license to sell real estate doesn't make a person a good Realtor anymore than having a drivers license makes one a good driver. Choose wisely.
For more information on me the information in this article, negotiation strategies, buying or selling real estate, contact me at cd@christiandistasio.com

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