Real Estate Rookie

The “Secret Sauce” for Buying Rental Properties BELOW Market Value

Feb 19, 2025

In this discussion, real estate expert J Scott, author of "The Book on Negotiating Real Estate," shares invaluable insights into mastering negotiation skills for buying rental properties below market value. He emphasizes the importance of building relationships over adversarial tactics, encouraging listeners to understand sellers' motivations. J also addresses the fear of lowball offers, revealing strategies to foster rapport and create win-win situations. Discover how to make your offer stand out and navigate negotiations like a pro!

48:37

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Episode guests

J Scott

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Quick takeaways

Mastering negotiation skills is essential for real estate investors, significantly impacting their financial success and ability to secure favorable deals.

Building rapport and gathering vital information about a seller's motivations can lead to mutually beneficial agreements and creative solutions.

Practicing negotiation in everyday situations helps rookies gain confidence and overcome the fear of placing low offers to initiate successful discussions.

Deep dives

The Significance of Negotiation in Real Estate

Negotiation plays a crucial role in real estate transactions, influencing both the success of closings and overall deal effectiveness. Proficient negotiation can be a significant determinant of a real estate investor's financial success, with even minor savings on multiple transactions accumulating to large sums over time. For instance, saving $100 on 30 transactions in a year adds up to $3,000. This underscores the need for rookies in real estate to focus on developing their negotiation skills from the outset.

Intro

3min

The Art of Relationship-Driven Negotiation in Real Estate

12min

Building Relationships in Real Estate

5min

Negotiating Low Offers in Real Estate

10min

Strategic Real Estate Investing

8min

Mastering Real Estate Transactions

6min

Navigating the End of Real Estate Negotiations

3min

Want to learn the secret to snagging rentals below market value? Every successful investor has this one crucial skill, and it’s often the difference between getting the door shut in your face and coming away with a discounted property. Even rookies can learn this skill, and today, we’re bringing on a pro to show you how!

Welcome back to the Real Estate Rookie podcast! Today, we’re joined by J Scott, who delivers a masterclass on real estate negotiations with sellers, agents, contractors, vendors, and anyone else you encounter in your real estate investing journey. In this episode, J will show you the best way to sharpen your negotiation skills, the questions that will help you determine a seller’s motivation, and how to stand out to sellers in a competitive housing market.

But that’s not all. If you’ve ever wondered where you should set your starting offer and how to get over your fear of insulting the seller with a “lowball” bid, J’s got the answers. Better yet, he’ll show you how to do this without creating any kind of animosity between you and the seller. In fact, he’ll share how you can do the exact opposite by building rapport and creating a win-win for both sides!

In This Episode We Cover:

Using the power of negotiation to buy rentals below market value

The number one way to sharpen your real estate negotiation skills

Crucial questions that will help you determine a seller’s motivation

How to make your offer stand out (even in a competitive market)

The two tactics you must master to become a successful negotiator

How to avoid an adversarial relationship when entering negotiations

Two telltale signs that it’s time to end negotiations with a seller

And So Much More!

Links from the Show

Ashley's BiggerPockets Profile

Tony's BiggerPockets Profile