How To Negotiate Deals In Person - Beginner To Expert in 27 Minutes

in this video i'm going to teach you everything that you need to know about negotiating in person this video is going to be especially focused on your first meet with someone that you're going to be negotiating with we're going to do this in a timeline format everything you need to do prior to meeting that person everything you need to do as you meet that person and everything you need to know and keep in mind during the negotiation process i'm making this video for you now because i'm actually negotiating another deal myself i'm in manhattan right now working out the terms on a 28 million dollar real estate contract and one of these gentlemen at this table i've never met before so i'm going to be able to use this exact experience i'm about to go through right now to teach you all about negotiations it's going to be super fresh in my mind this is going to be a great video buckle up let's talk negotiations [Music] all right huge win today i'll tell you all about it here in a second but let's start this video by teaching you section one and section one of negotiating and according to the system is everything that you need to know up into the point that you meet somebody for negotiations and so like this video subscribe if you're new we're going to talk about a lot of stuff dealing with negotiations in real estate this is great for you so number one is prepare that means that you need to know the people that you're meeting with person or persons so where are they from what do they do what's their birthday do they have kids do they have husbands wives etc get all the like information about them that you need in order to have a real custom conversation with them that way you're not flying in blind and just having small talk you want to get deeper than that thank you two show up early that means 15 minutes 20 minutes before your meeting the last thing you want to do is be flustered because of traffic or any other external reasons why you're like late you wonder if this is going to cause like a negative first impression you want to get that out of the way and protect yourself from against like some awkward emotional state of mind that you're trying to avoid and being late is one of those things and of course being early sets a great first impression that's part of setting a good first impression which is part of showing respect and winning your negotiation through like not falling into any traps like cultural traps like being late to a meeting three dress the part that means you dress at or above expectations now in texas where i live a lot of people are really casual and their meetings they're dressed casual we're talking about jeans and boots kind of casual where in other bigger cities people wear suits and they wear ties i was going to new york so obviously i dressed the part there's no such thing as overdressed but there's definitely a thing called underdressed and don't end up in that category don't over blow it and wear a full tuxedo you know of course you did your homework on the person you're negotiating with you should kind of know where they are and nail the mark do your homework to know them to know what you think is culturally appropriate for when you meet with them four when you're there early next you focus on mindset you want to make sure that you feel like prepared that you feel confident that you you understand that there's no more preparation that you can do this meeting is happening right now so mindset over everything it's like taking an exam you can cram cram cram but when you're stressed for that exam the moment the exam starts you're in the wrong emotional state to perform well you need to get into a place where you're performing well emotionally which means that that 15 minutes before the meeting starts you need to really focus on your mindset make sure that you're calm and collected and optimistic and ready for that meeting this allows you to get into a flow state a flow state is where you can react freely to somebody you have no expectations um you already know what you want to talk to them about you already have that kind of prepared but you're not like circling in your brain about the things that you think you're going to say and wondering how it's going to go you need to wipe all that stuff out and clear your mind all the way and get into that flow state so that way you can meet that person authentically respond to them authentically and do things one step at a time without getting ahead of yourself a lot of people who like screw up negotiations when they're new they talk way too fast they say way too much stuff they're nervous they try too hard they oversell all these different things and a lot of this can get avoided by getting into that flow state look it up so let's move on next chapter of this is starting with the handshake we're going to cover everything that you need to know once you're at the table like having coffee or having lunch we're going to jump into that next okay now for the back end of this video this is where it gets really deep of course like we just covered all the fun stuff before you arrive and you have a sit down with somebody looking at them eye to eye during your negotiation now the rest of this video i'm going to take you from the hello and the handshake all the way through to where you're at the end of the negotiation and you guys part ways hopefully with the deal in your favor or the workings of a deal okay so first thing is you want to make sure that you set a good positive first impression now we try to prepare you for that by researching your client you're researching the person you're negotiating with making sure you dress for the part making sure that you're in the right mindset you're in a flow state so you can actually just meet somebody and react to them as they are you want to work on all that but there's a book that i recommend you read called enchantment it's actually by guy kawasaki um apple guy ex-apple dude and he talks about the the four like aspects of like a great first impression um and like how to smile like where your crow's feet show because that's actually how you um your smile is real on your face instead of like a like a fake smile and he talks about all sorts of other stuff so um natural first impression tips the enchantment is a is a great book now your body language can't be too loose can't be too rigid but people are forgiving of people being slightly nervous not everybody's an extrovert so even if you are a little bit tight in the shoulders when you meet somebody for the first time some people take that as a positive sign of respect i know people in hr are trained to look past people's nervousness because nervous just means you care and if you'd like tag somebody for being nervous in an interview you'd like flunk all of your applicants except for sociopaths so being nervous a little bit is okay just just don't be too tight and get out of your head if you feel like you're super nervous just try to feel your feet feel i feel your extremities um you'd be you'll you'll find this as a real fun trick because like when you're in your head you can't feel the rest of your body you're gonna find that like the weirdest thing ever so like i try to like curl my feet if i ever find myself being like too emotional or my brain is racing so um remember just to stay kind of mindful of your of your body so that way you can be mindful of your body language and relax when you meet somebody handshakes are important um i like the palm slightly up not too much like car salesmen and definitely don't like power somebody like level is good or even just a little bit opened up because that's like a sign of openness without being submissive um you know you can like touch somebody's arm when you shake their hand but with cover 19 you probably want to skip that for a little while look them in the eye nod you know what i mean the handshake's firm meat of the like meat of the hands into the hand like this nice and firm lock the thumbs in before you clasp and shake that hand um a second and a half is probably right any more than a second and a half for a handshake and you're just like now you just make the guy uncomfortable so don't do the too long of a handshake thing that always bugs me out also um you don't want to get caught trying too hard so really really don't try too hard to make this negotiation work um if you if you try too hard like you're going to be forcing jokes or forcing laughter in response to what people say hoping that you can really make it happen well the thing is is people look for natural fits like they look for natural fits between people and people will make those natural fits work as long as there's a natural interaction and if you try to force something you're going to make something like so unnatural that it's awkward and you're going to make it impossible for that other person to connect with you because any time that two people come in to negotiate you should expect that both persons are wasting their time at this meeting so both persons want a deal done that means there's something in it for them and they're trying to find a reason to do business with you because they see a potential in getting what they want with you or from you so don't try too hard because they're there for a reason anyway and don't muck it up because you're trying to force the issue just be be human and relax like i said and let the whole thing flow next is listen more than you speak gathering information in a negotiation is probably one of the most important things you want to find people's pain points you want to find their ambitions you want to let them talk about what they want to talk about so you can find a kind of way the way that their mind likes to wander and what subjects matter to them and maybe anything that happened to them recently that you can you know cue up and make a theme in the conversation you want to find out what style of humor they think is funny so you have to listen more than you speak always let the other person talk first like always let them open up and be interested in them and ask open-ended questions where they can tell you more in any way or format that they want to tell you their story you've got to let them give you things and you've got to spend your time opening them up and letting them kind of like walk themselves out into the open instead of trying to price somebody open you know with like control questions like do you feel that this is the best decision for your business like like you don't want to be like aggressive um and asking a bunch of yes or no questions where you're obviously leading the person to like a point let them talk and you're going to find that you're going to be in such a more powerful position 15 minutes into that negotiation in order to pull this off where you listen more than you talk and you're in a flow state you're natural you need to stop focusing on what you have prepared so you practice what you wanted to say for days and days before this like negotiation you've practiced the bullet points the benefits everything right you know it all and it's been racing through the back of your head because this is like this is my golden ticket to get this deal done i've got to say these magic words at the right time no yes but no so you've learned everything that you need to say to somebody that you want to negotiate with and it's going to be important to say when the opportunity presents itself in the right way but you don't want to just like try to go and give a speech at the first moment you have an opportunity to speak um so tell me more about you well hey so yeah the great thing about this deal is no like he said tell me more about you not more about your deal you know what i mean so if you're constantly thinking about what you want to deliver to somebody you're not going to be able to actually authentically respond to the conversation because you're constantly going to like try to segue into your pitch and you have to abandon your pitch when you're getting to know somebody your pitch does not matter it should be the last thing on your brain you will eventually get a chance to start saying some of those key tidbits and the script never goes 100 according to script right you don't line up a person like perfectly to swing the bat like it's t-ball so you have to abandon your script but remember the moral of the story and the conversation will flow to where you can start to deliver pieces of it at a time where the person is ready to hear you but you can't focus on that stuff otherwise you're just going to constantly try to like railroad them with the things that you want to say and the person is going to catch you being insanely inauthentic and they're going to start to not like you and they might even get annoyed in your conversation if you constantly try to hit them with these preparatory phrases because they obviously sound unnatural because they're practiced scripts and they sound unnatural there's no way to avoid that so to be natural you have to abandon them and just remember the concept of what you were saying now as you get to the point where you're going to be able to say the things you want to say you've got to segue into getting that person ready for you ready for what you have to offer ready for your proposal so while they're talking while you're listening you want to use mirroring techniques and other nlp techniques and here's a couple so mirroring is where if somebody leans in you lean in if somebody holds their hands this way you hold your hands this way and if somebody leans back you lean back somebody crosses their legs crosses their arms leans to the left you mirror their body language so that way you are doing more things similar to them so they seem to think that you're more like them and you're so because people are tribal um humans are social creatures and they they've been in tribes ever since we've had writing right so they tend to form in groups and they look for kind kind recognizes kind so that is one way to make somebody think that you're like on the level because you do a lot of the same things that they do mirroring keep it subtle don't do like every single thing that they do and like like why are you copying me bro but the little things you know i'm start to you know flow with it and what's cool is they will start to do it back as a sign that it's working and they won't even notice it so you'll notice that when the person is actually like vibing with you that when you lean in they'll lean in too and so you can start taking lead on these things just to do what's called a compliance test i mean you can test to see if they're in this conversation see when somebody mirrors your body language back you're getting a cue that their buying temperature is higher that their interest level is higher um and you have their focus you have their attention so that's great they say that blinking faster is a sign of liking so it's a very subtle way to tell somebody you like them is just to blink more when like you're having a conversation with them i don't ever really try to use that it might happen naturally whatever now i also like copycatting their phrases so if somebody likes to use the word bud or pal i try to use the word butter pal instead of friend or champ you know or something like that so cultural um syntax and phrases and stuff like that aren't is another way to be tribal you're looking for more similarities and you're trying to achieve likeability and respect first before you achieve their interest and so this like compliance testing that i just talked about is kind of a great way to talk about the road map for this by doing things that line you up with them make you seem more likable make you seem respectable you've been listening more you haven't said anything dumb people like being listened to all these things that you've done have really made the person enjoy their experience with you so they are much more likely to like you now and they respect you because you haven't done anything cliche terrible that like we've all had disaster dates negotiations can go the same way there is a silent appreciation for the fact that you're not being a weirdo during the negotiation and at that point that you've earned all of these unspoken points with this person then you can start to generate interest in your pitch or your product or your proposal and at this point what you can do is you can start to line them up for your pitch your or your points by feeding back to them things that they've said earlier on in the conversation with your own unique phrasing that starts to point in a certain direction so if somebody has a pain point like they're they they're paying way too much in like interest payments on something or their cost of turning over new tenants is too high like that's something that i would play with so um i would like my negotiation that i had today this new guy that i never met before he's been investing with a guy that i have like multiple leases with and so i'm about to pick up four town homes with this dude um but at the same time we're negotiating this 28 million dollar real estate investment package where we're going to try to buy a series of properties throughout philadelphia in areas that are on the on the come up and so we're discussing the terms of this deal who gets what equity and like what's the payout structure and all that good stuff so when meeting with this guy um he like i got to hear all sorts of things about him like he used to be in boxing and he's just really kind of like this like cooperative fast kind of guy his brain is like nice and quick and he's a super polite dude um and he's he's very cooperative with everybody at the table he's always trying to cooperate in their stories so i can tell that this guy like we're just gonna hit it off as long as we're i'm giving value to him and he'll get curious and give value to me back and we can generate the synergy and so during the conversation with him i was able to find that his one of his greatest expenses as a landlord was the cost of replacing a tenant after one moves out so i'm i started talking about rental arbitrage which is what i do and in that conversation i made sure to stop at the part where we signed two or three year-long leases and we always renew those leases as long as everything is going normal or better so as part of our like business model we we try to pitch i told them i try to pitch landlords on the fact that we can lease 100 of a building within a month and then we keep the building essentially forever as long as our model works out in the neighborhood and of course we do our due diligence to make sure the model's going to work before we say yes to an investor on a building and so in return this is kind of what a deal would look like when we pitch a landlord like that and so instead of saying if i could tell you this would you be interested like a salesperson i was like i basically did what a recruiter would do you call the person you want to hire and say hey um our company's looking for a software engineer i know that you're one of the best software engineers i've ever met do you know anybody who's on the market for like a really high paying cutting-edge software engineer job i bet you know tons of people you're actually hoping that guy says well yeah me i want that job right so you call the person you're trying to hire asking if they know anybody else so this i did the same thing with this landlord while feeding back his problem his pain point and i'm like i have a solution to that pain point and so when i pitch other landlords what we do um this is some this is the way that i tell them this like this is how i pitch them and so he like basically ran straight into my proposal without knowing that i was like laying the proposal out in front of them and i kind of opened the door for him to like say well tell me more so how do you choose your how do you choose your buildings you know what i mean and so now i start telling them about my my marketing my market research strategy for my rental arbitrage business and i was able to start layering on all the benefits and that leads me to like one of my next points which is never forget that there's something in it for the person you're negotiating with you need to find synergies where what you do and what they do can get better together and it always has to have an advantage for them the moment you find out what's in it for them do not forget it and don't let them forget it either so you're constantly what's called embedding where you weave in value for them as you're telling a story so you constantly reference value for them in passing as you're telling your full story so that way it's not inherently obvious that you're trying to give them like a reminder that what you're pitching them is valuable but it's like recognizing the fact that blank this is good in this situation or recognizing the fact that blank cap rate goes up and you just mention that stuff along the way in your negotiations or in your presentation and it keeps them thinking about how this is good for them and that's a great thing to do is leave breadcrumbs of value and reminders that it's synergy on the way through your presentation because a lot of times the things that we explain they're not simple and we need to be able to get out enough details that the person knows what they're getting themselves into so you have to keep them on the string so you have to keep feeding them as they actually listen to you you got to give them treats along the way so with that there's a caveat you've got to keep it simple um that means your terminology inside lingo stuff like that you can't go off the deep end and totally nerd jack the conversation and say stuff that they don't understand a lot of times people not alone go uh-huh because they don't want to sound dumb but they're going to not understand inner like jargon and they're you're going to lose them because there's key facts of the deal that you could have explained at a 4th grade level but you're trying to explain it like he's an mit student and that makes you feel smart but it loses you the deal so keep things in layman's terms as much as possible unless you're dealing with a subject matter expert who really enjoys using acronyms and stuff like that and that becomes hyper apparent in the conversation because they're the ones trying to push the envelope on cerebral conversation but if you're not talking to a cerebral who wants to like get his adrenaline rush off of using big words then avoid it like the plague because you don't want to be that guy okay now also remember at all times that the person that you're negotiating with their decisions are going to be emotional and they're going to be justified with logic so in order for somebody to choose to do business with you they have to have the feeling that they should they're going to get a feeling that they want to do business with you a feeling to say yes and they're going to justify their yes with logic that you've given them along the way but the logic is such a small piece of that greater pi see the brain has two layers you've got that outer layer where it's like what's two times two but then that inner neural network where the word like the serotonin and your other like neurotransmitters are firing and it's all chemical and all hormonal like you can't control that you can't make sense of that on the fly so a welling up of like this isn't good i don't like this i've got a bad feeling about this or welling up of like wow this is really popping off like this is really cool like like your powder keg romance in this business deal like that stuff is all like subliminal underlayer stuff and then people's decisions on what they want to talk about where they want to go with the deal if they want to do the deal oh that's an outer layer that is highly dependent on the emotional state that you put the person you're negotiating with in and and finally you're like at the end of the deal now right you've got your pitch down you've like you've put it on the table you've you've gone back and forth with some questions and you've like mulled over cool ideas and go well we could actually even do this blah blah blah don't be outcome dependent see every negotiation is going to be unique because you're talking to a unique person every single time so when you get through this negotiation some people they just feel the need that they need to spend a couple days on it and they're not going to say yes or no like at the table there's going to be people who want to shake hands and make a contractual agreement on a handshake and that's like completely the opposite end of the spectrum some people want to draft up like a prospectus and some documentation and sign some things everybody's different everybody's different and if you're depe like if you're depending on a very specific outcome for them to say something in return like yes here's like yeah i'll take the pen and sign this document right now if you're outcome dependent you're going to lose 80 of your deals or your negotiations because nothing ever fits that way so the moment that somebody disappoints you by saying no to your offering in the way that you wanted them to say yes you don't adapt because you get like you fall in your face because oh it didn't work right i was depending on this outcome and it didn't work so you've got this hit miss mentality there but what you have is you should be looking at it like a heat map and like finding out well where are they on this deal compared to where i want to get them see during that negotiation your presentation you're trying to drop them as close to your deal your terms is possible right and if you drop them somewhere else on the table and you know there are a few terms away from what you find most ideal you then spend the back end the next week or so trying to wrap it up and move them nudge them closer and closer to the way you want your deal done now if you can't get the deal done 100 the terms that you want that's okay if you can get 95 or 90 percent of your deal the way you like that deal that is a huge win because you got them to take 90 percent of your deal and think that it's good for them and then if they had 10 of things that they needed to modify for them and you only have to accept 10 of their terms you're crushing it but a lot of people who like take a sales approach to negotiations where they like winner takes all they they can't stomach the fact that they've got to give up things in return and so they either want their deal closed the way that they want it closed or they feel like they they screw like they screwed it all up and and like it affects them on the back end and they're unable to adapt to nuances that are presented to them in response to their presentation and you need to make sure that you stay fluid like we talked about being in that flow state and now creativity comes in and you find out more information which is totally to your advantage you find out more information about this person about why they're saying yes or no to certain things and then you can respond again and go wow i had no clue that you know this is kind of how you do your business or these are the things you're dealing with you can actually you know use this product that i offer or you can use this referral partner that i have or let me bring in an expert on the deal and because they can do this with you and set up your entity a certain way like whatever it is you're pitching you can actually make the deal even more perfect than you could have ever imagined because you were not aware that there was a hidden opportunity in the problem right so when somebody comes back and says we can't do the deal like that if you get shut down you can't find that opportunity in the problem it's a dance it's a back and forth and you should expect the deal to be done later you should always expect that you're going to leave your first meeting with somebody at the negotiation table halfway but optimistically halfway you want to be in a good direction and you want to have good momentum and you want you and that other person to enjoy the journey of negotiating more than anything else because you want that person to pick up your phone call later you want that person to meet with you again and like talk about extra terms you want that person to give you extra business if they're not the right fit for what you do you want them to be like man this guy he knows what he's doing and i really like him we had coffee i think you should meet with him i'll i'll endorse this guy you can meet with this total stranger and like he'll give you referrals this is how you negotiate get people to enjoy spending time around you and voila all the doors start to open i hope that you use this stuff and you guys absolutely crush it negotiating is absolutely key um because like as you guys know my business model i negotiate with landlords all the time and i just got a landlord who said no to my six weeks free up front and i here's what i did i'm gonna give you this kind of like this bonus one for rental arbitrage guys you're gonna love this landlord's like i'm not gonna give you six weeks free on this two year long lease um the rents are already too low and i initially said okay i want 10 weeks free half security deposit no last month's rent so i offered i'll pay you the first four weeks of rent and a half month of security deposit and then i want six weeks free and will pick up rent in 10 weeks that's what i offered he said no and i said in that deal that we'd pick up the lease like in in 10 days or less is what we committed to what i did is he's like no to that so i went back to him and i'm like okay so you have three units that you want to get leased right away a winner is coming here in philadelphia and you don't want to go into the winner with one or two of these not done this deal would be so clean if we got it done now our business model we need rent concessions up front because we invest so much money into furniture so this is something that we really can't take off the table but i'm willing to modify it a little bit for you how about we do this i'll i'll take that six weeks and i'll make it five weeks rent free and then instead of taking the lease in 10 days i'll take the lease in four days giving you an extra six days of rent because i'm taking it six days faster so i'm giving you essentially two weeks back out of the out of the six weeks that i asked for where i still get five but you get two of them back how's that and he said yes to that deal so what i did is i used timeline to acquisition um and like taking the lease faster and a slight reduction in my my six weeks free down to five where a lot of people would have dropped down to four right away i dropped down to five and gave him something else and it worked because a lot of people say no to the first round of negotiations because they know that there's a better deal for them on the other side give yourself some wiggle room for you to like make concessions and like this is one of the biggest parts of like negotiating deals people like to know that they got a deal which means they need to ask you to do something that you don't usually do so you have to leave room to make those judgment calls even if that's like the deal you wanted at the end of the day you still need to set it up that it's two or three steps removed that's a big deal for negotiations so this stuff is powerful i promise you it's how i've made my millions of dollars negotiating with people the way that they want to be talked to use this stuff watch this video again take notes and practice and you will be closing deals left and right i look forward to hearing your results put them in the comments and i'll see you on the other side

Channel: Sean Rakidzich

Views: 29,894

Keywords: how to negotiate, negotiating skills, negotiating rent, how to negotiate apartment rent, how to negotiate lower rent, closing real estate, negotiating, masterclass negotiation, how to sell, how to sell a house, sales techniques, sales closing techniques, selling real estate, sales, selling, presentations, presentation tips, presenting in person, in person sales, direct selling, first impression, good first impression, improving a sales pitch, get better at selling, airbnb, vrbo

Id: _3NJh8c8Pq4

Length: 27min 19sec (1639 seconds)

Published: Wed Oct 21 2020