Guest Blogger Chris McClatchey: The Art of the Deal is Really Just Communication
Chris McClatchey is an incredibly experienced investor who’s best known for his teachings about creative buying. If you ever get a chance to see him live, do it. If you live in Ohio, that chance is coming on September 5th in Columbus or 7th in Cincinnati. See www.CentralOhioREIA.com or www.CincinnatiREIA/com for details and a free guest pass.
Do you ever wonder why some investors do a lot of deals and other investors can’t seem to find even one deal? I have wondered this for a few years. So I started looking for the key differences in what makes a successful investor. What I observed came down to one thing. Communication!!!
When I first began to study the different types of real estate investors, I realized investors universally do four (4) things. 1) They generate leads; 2) They analyze the deal; 3) They make offers; and 4) They negotiate. These are the four things that all investors need to do on a consistent basis to be successful.
In addition to studying the different types of investors, I began to watch closely at their education programs and the subject matter of what they teach. It was very interesting to me that almost all of the educators taught three (3) of the four (4) items above. Their strategies all had the same three (3) items packaged up. They taught you how to generate leads, how to analyze the deal and how to write up the offers. Curiously, I don’t recall any of them that taught or sold on how to negotiate.
As I finalized my observations, it came to me. Everyone focuses on Leads, Analysis and Offers, but only the successful investors focus on Negotiation. It is well documented that the extent of your wealth is in direct correlation to your ability to communicate. It’s why public speaking is the highest paid profession on the planet. What the successful real estate investors realize is that the entire process is negotiation and how they communicate directly relates and reflects on the success of getting deals done.
So here are some tips on how to be a Master Communicator:
- A) Successful Investors realize that Communication = Negotiation – This starts from the very beginning. From the time a lead is generated, a relationship is started by taking that initial phone call. The words and phrases that are used in the very beginning establish the relationship and greatly affect the outcome.
- B) Successful Investors develop real relationship with Sellers and Real Estate Agents – I call this the 7 Touch Approach. In order to develop a relationship or have a rapport with someone, it will take a least 7 touches of communication with them. The more touches you have, the more of a relationship you have, the more deals get done.
- C) Successful Investors realize their offer begins the negotiation process – Have you ever heard the phrase “make a good first impression”? The successful investors know that their offer is the first impression. One of the things I teach is how to write your offer from a “giving” perspective and not from a “taking” perspective. When writing offers, most investors tell the seller what they want from them. If your offer uses words and phrases that “take” from the seller, you are starting the negotiation off on the defensive. When someone is taking something from you, your defense mechanisms go up. We write offers from a “giving” perspective. People are much more receptive when you give them something. Hence the negotiation gets off to a better start.
If you are not doing deals or as many as you would like, start focusing on your communication skills. Anyone can implement a Leads, Analysis and Offer strategy. However, if you want to separate yourself from the rest of investors, you need to practice and Master the Art of Communication.