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The Power of Renegotiating

SHOW SUMMARY:

Probably around 25 to 35% of the deals they do is renegotiated by Larry. In this episode, they talked about the importance of renegotiating. They also shared when and how to renegotiate.

SHOW HIGHLIGHTS:

  • Share Sponsor winner
  • 3-day event
  • Deal of the week
  • Renegotiating deals
  • When to renegotiate
  • When you are selling properties
  • What to talk about before negotiating
  • Partner Program

QUOTES:

  • “Always ask for twice of what you want.”
  • “You want to look for opportunity to renegotiate a deal.”

RESOURCES AND LINKS FROM THIS SHOW:

SHOW TRANSCRIPT:

Larry: Hola. Hello. How is everybody doing? Welcome to BRAG. Hey, Manny what’s up? Manny is always the first one to be on and he is always the first one to comment share, share, share. So, Kandas is coming here in just a minute. She is on her way in here right now. She is still sick but she is getting over it so she is doing all right. We got a live event coming up this weekend, so we are kinda getting ready for that. So, please share this video to get a chance to win the Real Estate Day Trading Jump Start which sells for $297 on our website. You can get it along with 2 free tickets to see us live, right? So we do have an event this weekend. So please share, share, share. There she is. She made it.

Kandas: I made it.

Larry: She’s sick but she has made it.

Kandas: I’m sick. This is close quarters.

Larry: So, don’t be leaning toward me. Don’t be breathing this way.

Kandas: This is a close quarters for me to be sick.

Larry: I know right.

Kandas: What is this about?

Larry: That means I got to go get a haircut when we got off of this. It is to remind me to go get go a haircut. Hey, Bob what’s going on? How you doing? What’s happening everybody? Louise, how are you? Excellent. Give us a shoutout. Let us know you are there. We appreciate it. Shane is in the house. How you doin’?

Kandas: Hey Manny.

Larry: What’s up? So, let’s talk about the share winner for last week. Man, did you hear that? Don’t be spewing your spores around here.

Kandas: I called them.

Larry: Look, Mama Teresa.

Kandas: Hey, Mama.

Larry: There is Kandas’ mom. So yeah the share winner for last week is Eugene La Branch. So there you have it. Hey, Dave what’s going on? How are you doing all the way in St. Louis?

Kandas: Eugene La Branch. If you can send an e-mail to costumerservice@larrygoins.com, let me know that you are the share winner. We will get that squared away for you.

Larry: That’s right. We’re gonna mail it.

Kandas: Physical copy of the Real Estate Day Trading.

Larry: Ship it to you. Mail it out and we will pay the shipping, okay.

Kandas: This time.

Larry: This time. That’s good. That’s good. So, look Gary Hart is in the house too. Doug Hart I mean. Why did I say Gary Hart? I was thinking Gary or something.

Kandas: I don’t know.

Larry: But Doug what’s going on? How you doin’? It is good to see you. Nick is in the house. Josh, what’s happening? Glad to see you guys. I’m really glad you made it. So, please if you share this video, if you will share it, we are gonna proclaim winner for next week, we called it a share sponsor and you can win the Real Estate Day Trading and Jump Start, $297 value. Steve, what’s on? What’s going on? How you doin’?

Kandas: What’s on?

Larry: What’s wrong with me?

Kandas: That’s like I watched that Big Bang episode last night and the female scientist coming to stay with them and she is like hallo.

Larry: That’s funny. Frank is on too from Harrisburg, North Carolina. That’s not too far away.

Kandas: All right guys. Thank you all for being on. We have got to… we are gonna have to be out from here and set up for our event this weekend. If you haven’t registered yet and you are close enough to join us, I think we’ve got 7 seats left open for this weekend’s event and it is not even the weekend, it is Thursday, Friday, and Saturday so you could go to… what have you given them? 888-212-6567 to register for the 3-day event. You can also ask the guys when you call, if you can’t come to this one, go ahead and hop on the roster for the next one. They’ll be able to let you know the dates of that. In that way you are good to go and already have a seat for the next one if you can’t make tomorrow.

Larry: Awesome. Awesome. Our students and our followers can come for free but we do charge a $97 seat reservation. That’s just a refundable reservation to set the room because if we didn’t charge $97 up front for a seat reservation and it is a refundable reservation, if we didn’t do that everybody would just say add me to the list, add me to the list, we have 300 people and then 100 people show up, right?

Kandas: And I don’t play that game.

Larry: Which is what used to happen.

Kandas: It did use to happen, but I don’t play that game. So, I like to make sure we take enough material, we have enough staff, we have enough coverage to support everybody. So, I like to do the registration, it is refundable, you’ll get it back the week after the event, so ultimately it is of no cost to you to come to this event.

Larry: There you go. There you go.

Kandas: Hey, Cortney.

Larry: So, let’s see. Heide said, “Come to Florida.”

Kandas: No.

Larry: Here’s the deal. We used to do our events, we used to do 8 of them a year all around the country. We did them in Orlando, Chicago, Boston, New York. We’ve done them in California, Las Vegas and Dallas, Texas; Houston, Texas, Denver, Colorado.

Kandas: Portland, Oregon.

Larry: Yeah, Portland.

Kandas: We’ve been everywhere.

Larry: So, we used to go all over but guess what, we are tired of traveling. We ain’t going to travel no more except for a couple of Masterminds. We are in a couple of Masterminds and we do travel for this. So what we decided to do…

Kandas: And for family vacation.

Larry: And family vacations.

Kandas: Yup. Pam and I are working on one of those now.

Larry: Yup. So, what we decided to do, we are having 4 events now per year and all of them are in Charlotte, North Carolina. So, if you want to come see us, you got to come see us. Look, there’s Manny and Sue. Hey, how you doin’? So, yeah if you wanna come see us, now you got to come see us in Charlotte, North Carolina. That’s where our events are. Kandas loves that ‘cause she’s already got the hotel booked for all 4 events for the whole year. She don’t have to deal with it anymore.

Kandas: That’s exactly right.

Larry: And she could buy houses.

Kandas: That’s right. We have too much going on for me to be working with hotels all across the country when we are building up our real estate team and the volume of the deals that we are doing right now, there’s no way.

Larry: That’s exactly right. We are doing…

Kandas: We have to set priorities.

Larry: We’ve got a lot of stuff going, right?

Kandas: Mm-hmm.

Larry: Next thing I want to talk about is deal of the week, right?

Kandas: Deal of the week.

Larry: Here’s the deal of the week, okay. You’re gonna love this. You’re gonna love this.

Kandas: How much did they know which one you chose?

Larry: You know what, it was kind of a hard choice but I wanted to…

Kandas: From last week?

Larry: I wanted to pick a unique deal, okay. So this is a deal I got on the phone and the guy actually owed about $18,000 in some liens, judgments, whatever it is. So, here was my purchase price and I wrote it up this way, okay. I wrote it up to where the seller will net $4,000 and the buyer is responsible for any back taxes, liens, judgments or code violations.

Kandas: Now you made me thinking, that’s crazy. Why would you do that? And you’d be right.

Larry: No. No.

Kandas: Initially.

Larry: Here is the reason that I wanted to do this, okay. I wanted to do it because I knew ‘cause he told me these are old really old and I’m wondering, you know, are they even gonna attach or we can negotiate them down ‘cause I figured $18,000 like I’ll probably negotiate it down to $1,000 or $2,000 possibly, right? Well, all he wanted to do is walk away with $4,000. That’s all. And this is very important guys, I wrote it up that way, seller to net $4,000, buyer responsible for any back taxes, liens, judgments, whatever. Guess what, we pulled the title, guess how many liens and judgments there were? Zero. Zip. Nada. I bought this house, I thought I was gonna have to probably cost to $10,000 in it.

Kandas: Which we had set that. We had said all right we go up to $10,000 for the judgments and everything.

Larry: Yeah, internally we said we will follow through as long as it is not over 10 but guess what I am buying it for, $4,000.

Kandas: Easy in and out.

Larry: Easy in and out. We had a guy used to work with us. Every house I don’t care if the roof was caving in, easy in and out, easy in and out, right?

Kandas: Yes. I cough more when I laugh which has been this is the way this office works.

Larry: I know right.

Kandas: So, I haven’t been able to stop coughing.

Larry: That’s funny. That’s funny. So, my friends that is the deal of the week. Did we talk about the Investors Kit?

Kandas: I’m not sure.

Larry: For people who might just be watching.

Kandas: I’m not sure. So the Investors Kit has the digital copy of the Real Estate Day Trading book, has a copy of… Thank you Ben. Has a copy of the HUD Homes Half Off book as well, some of our links to trainings for the Filthy Riches model, the Ultimate Buying Machine model, our wholesaling model. I need to start just using Day Trader instead of Ultimate Buying Machine for Harmony Millions for some asset protection stuff. It’s got a bunch of different stuff in there. You guys can call 877-LARRY-GO and Zenobia can help get that to you or you could text the word BRAG to 803-897-6063 and it will do the same thing. Zenobia will answer the phone or you can text BRAG to 803-897-6063.

Larry: Awesome. Awesome. Thank you for that Kandas. We really appreciate it.

Kandas: Mm-hmm.

Larry: So, what are we talking about today? We are gonna talk about… I don’t even put that up here.

Kandas: The text?

Larry: Yeah, but we are talking about… I didn’t put a scrolling thing up there for renegotiating, okay. But that’s the topic, that’s the main topic for today is renegotiating deals. And I got to tell you, first of all let me answer Steven’s questions. “Why Day Trader over UBM?” Well, the Day Trader book is a book right now, but I’m getting ready to come out with a brand new course.

Kandas: We are this close.

Larry: We are this close, right? In fact I just finished up the manual over the weekend and I’ve got a copy editor editing it and I’ve got another AV person editing the live phone calls and then I just have to record the manual, record the audio for it and then it will be ready to go. But we are retiring the UBM.

Kandas: Our flagship course is going into the glass case.

Larry: There you go. There you go.

Kandas: Retirement time.

Larry: So, we are retiring it and what’s gonna replace it is the Real Estate Day Trading Mastery course. And Joanna wants to know the number again.

Kandas: I know. Where did we put that?

Larry: It’s right here. There you go. Text BRAG to 803-897-6063. If you text BRAG you’ll automatically get a link for all that stuff. Look, there comes Kandas’ mom with the cough drop.

Kandas: Here’s Mama to the rescue. Hey, mom.

Larry: That’s funny. So, now let’s get back into the topic of the day, okay. Into the topic of the day which is renegotiating deals. Now, I got to tell you probably about somewhere between making 25% to 35% something like that of the deals we do, I renegotiate those deals. In fact, we just sold a house today, but we didn’t close on it. We got a contract on it to sell today. We sold it for 85,000. I have this house under contract for 75 grand. I renegotiated it down to $50,000. I took a 10,000 dollar deal and I turned it into a 35,000 dollar deal and even the topic if you guys checked out the email or whatever, it said how to make an extra 150,000 to 300,000 dollars a year, guys that is no joke. That is no joke. You can make an extra 6 figures a year just renegotiating your deals.

Kandas: And typically don’t you think it comes for us after we get the photos back and we talked about it internally and everything.

Larry: We do. Here is a couple of things, you don’t wanna just do it just to beat the other person off, not at all. But when something comes back and you realized that you know I could use this maybe it is a little bit more work than I anticipated, but I can use this to get a deal. For example, I’ve got a recording and actually this is gonna be one of the live calls, it’s gonna be one of the live calls in the new Real Estate Day Trading Mastery course where I renegotiated the deal down because there was a little encroachment of the neighbor’s property or something over on the land of the house I was buying and we were closing this deal that week when I called that person back. And I’ve told them the title work came back, everything is clear and I asked them if they are still ready to close this week and get their money. I talked about the money and then I happen to say, you know, there is one little challenge we ran into. There is an issue with the title, there is a neighbor’s one of their building or property something was encroaching over on the land. It wasn’t that big of a deal, right? It really wasn’t. It wasn’t to me. It wasn’t to our buyer. But I told them, I said we could get this cleared up, but it’s gonna take some time and some money. But I’m willing to take that chance and go ahead and close if they can give me a reduction in the price to help compensate for the time and the money we are gonna have to spend if we were to get it corrected. We end up going from 20 something, I can’t remember where it was 25 or something, I believe it was $19,000 that I got it down to. And I asked her for 18 and she said which by the way you always ask for twice for what you want. If you want $5,000 discount, ask for $10,000 discount. It is like whenever I negotiated the $75,000 deal down to $50,000 I told her $40,000. I figured she would come back somewhere in the middle in the mid 60s but she said can you go 50, right?

Anyway, I always ask for twice of what I want, but that recording actually for that deal would be encroachment, it’s gonna be in the Real Estate Day Trading Mastery course ‘cause in that course, I teach you not only… I’ll give you live recordings of me buying deals with sellers, me renegotiating deals and me getting 100% financing on the phone as well. So, anyway, you always, always, always want to look at your deals and try to figure out a way to renegotiate a discount if you can. If you can justify it. If you can’t justify it, don’t worry about it. I called a guy back…

Kandas: You won’t get them all.

Larry: No, you won’t get them all. In fact, we had a deal back fired on us a while back. I was buying it for $35,000 and I negotiated it, renegotiated it down to $25,000 but there was a lot of errors involved and because we were doing an assignment instead of closing it and reselling, one of the heirs said you are making too much money and said no $35,000 ‘cause they already knew we had it sold for $40,000. So, we are going to make 5, I got it down to where we are making 15 but one of the sellers came back and said nope, 35 or nothing.

Kandas: So, what do you do?

Larry: You only make 5 grand.

Kandas: Everybody only make 5, us and the heir is only making 5 grand.

Larry: Right. Right. Right. So, anyway you want to look for an opportunity to renegotiate a deal. Now, you can also do this when you are selling properties, okay. You can also do it when you are selling properties like we had a deal just today, the same one I was telling you about that the guy is buying it for 85,000, he offered 79,900. And I believe they almost gonna take it. But I told them…

Kandas: That Dan, that CheapyD.

Larry: Discount Dan.

Kandas: That CheapyD.

Larry: He is right out there. He hears.

Kandas: He can hear us.

Larry: He hears us. So, anyway I told him I said no, here’s what you tell him. Tell him that we will split the different with him and we will do 85,000. We are making up to him on the next one or whatever ‘cause he does a few fix and flips and sure enough the guy took it. So, you can renegotiate when you are buying properties and you can also hold to your number or split the difference or whatever when you are selling the property ‘cause we would have only made 30,000 on that if we have took the 80. But we made 35,000 on it. That’s like another wholesale deal for some people. Just by using your words and telling them what you are willing to take.

Kandas: Use your word.

Larry: Use your words. What are you 5?

Kandas: Use your words.

Larry: Use your words. That’s crazy. Use your words. But when you are renegotiating a deal, you always wanna focus on the money before you ever bring up anything about renegotiating, you wanna talk to them about the closing, about moving forward, about the money. I know it has been a long time but we are getting really close, we are about ready to close and I think the closing schedule for next week by the way there is something I need to talk to you about. And then you go into that. You always occasionally…

Kandas: Then you go in.

Larry: Then you go in. Then you occasionally mention the money and we can go ahead and close, we can go ahead and keep that closing at the same day, you’ll go ahead and get your money. I know it won’t be quite as much but you’ll be able to get this behind you and get it done. Let’s go ahead and do it. In fact, in that one that I talked about earlier that I re-negotiated, I told her on the phone I said I’m gonna have a mobile notary up to your house in 2 hours to get the new paperwork sign so that it didn’t hold up the closing, right? Going from whatever it was 20 something down to 19. So, always justify the discount. You can’t just get a discount just for no reason, you’ve got to justify. I had one it was either earlier this week or last week where I was renegotiating the deal, we are buying it in the low to mid 20s, I can’t remember exactly but I was trying to negotiate it down to about 15 or 18 and during the conversation, I found out the guy told me he said “I was really hoping to get my granddaughter some money for college and also you know my wife is going through cancer treatments” and he said “well I am too in fact she is getting chemo right now. She is at the hospital. They have her on treatment right now.” So, I decided on that call like listen don’t you worry about it. We will work it out. We will make it happen. We will keep the price at the same. Let’s just move forward. In fact, we will put you and your wife on our prayer list out here ‘cause every morning we have a little devotion and we pray for people, we’ve got a list of people on the whiteboard that we pray for.

Kandas: A whole bunch of people we pray for.

Larry: A ton of people.

Kandas: I’m on the list right now.

Larry: She is ‘cause she is sick. She is in here spreading spores.

Kandas: Mama brought my inhaler so that has really helped.

Larry: So, she is in here spreading spores. So, guys please take every opportunity you can to renegotiate the deal.

Kandas: Ethically.

Larry: That’s right. It works best if you get right before closing and they are anticipating their money.

Kandas: They’ve already spent it in their head.

Larry: You’re right before like kids in the hall, remember that? Right before closing, they are anticipating that money then you come back and talk to them. Just this morning, I had a guy that we are buying his house for 40,000 and I told him unfortunately we can only pay 10,000 or 15,000. So, the bad news is he owes 40,000 but the good news, well I don’t know if it is good or not, but he is behind on his mortgage so he is gonna try to negotiate a short step down to 10,000 or 15,000. I said if you can get it to 10 or 15 then let us know and we will go ahead and proceed and close on this deal ‘cause he wouldn’t get anything out of it anyway. So, there you have it. Kandas can you think of anything else?

Kandas: Did you tell them how to apply to work with us?

Larry: No I didn’t.

Kandas: Well, you should.

Larry: So, yeah, we have a partner program. We have a partner program where you actually partner with us. You come in here, you spend a few days in my office and we get all your systems and processes and procedures. We help you pick a market. We help you get your boots on the ground. We help you get your marketing going, so when you get home, your phone starts ringing. In fact, we have partners, when were they here? Two and a half weeks ago?

Kandas: Yeah. Actually, on Monday will be three weeks.

Larry: One of my partners already has 2 houses under contract. Two houses under contract, Jessica.

Kandas: I know. I’m aware.

Larry: Okay.

Kandas: What county she at again?

Larry: She is in Union County.

Kandas: Yeah. Right.

Larry: But Kandas has been trying to get me to move into Union County. We can’t keep up with all the leads we have right now, right?

Kandas: I’ll give you that.

Larry: In fact, we are looking to recruit one more person.

Kandas: We are.

Larry: One person we are looking to recruit.

Kandas: We have one empty desk right now.

Larry: We have one seat available for an acquisition person. If you have some real estate and sales experience and you are in the Charlotte, North Carolina area, please hit us up and let us know.

Kandas: Happy accident that we just talked about that. We aren’t planning on talking that out there.

Larry: So, if you like to hear more about the partner program, you could go to LarryGoins.com/Apply. The goal is to make your phone ring off the hook, so we could help you get three deals in 90 days or less.

Kandas: Don’t confuse the partner program with an employment opportunity. That’s two totally separate things.

Larry: Right. Right.

Kandas: Partner is working with us on a mentoring level. Not a job.

Larry: Coaching and mentoring you, get you up and running. Getting you three deals in 90 days. The employment opportunity is working here full time.

Kandas: Michael, are you seriously asking if we are gonna give out the hotel meeting space on this? That’s not how this works babe. No.

Larry: No, we can’t give it out here.

Kandas: If you are registered, you would have gotten an email. If you are registered and you haven’t got an email of where it is gonna be then send me an email at either kandas@larrygoins or customerservice@larrygoins and I’ll be glad to send that to you.

Larry: How many seats are open?

Kandas: Seven. There were seven when we came in here. If you haven’t registered yet.

Larry: We do keep them small. Michael, we do keep them small. As you know…

Kandas: Yeah, on purpose.

Larry: I mean you’ve been here to the office, so you know. Michael is in the partner program.

Kandas: If you haven’t registered yet then you can go to Larry Goins Live or call 888-212-6567 and the guys will be able to help you with that and once you get registered, you are automatically sent an email either online or the guys will send an email with all of the details.

Larry: There you go. There you go. Well, Michael we hope to see you there. That would be awesome. That would be cool. In fact, you can probably send him an email afterwards and all that.

Kandas: He’ll reach me.

Larry: He’ll reach out. He knows how to reach you.

Kandas: He knows.

Larry: He knows how to reach you. He is a local. All right so guys, we really, really appreciate you guys watching. We are gonna go and finish boxing up everything. For friends, that’s right. There you go. That’s good. That’s good. So, we are gonna go box up everything, take it over to the hotel and get things set up and rolling and I’m gonna go get a haircut, so I’ll be ready for tomorrow.

Kandas: Apparently. His to-do list for today.

Larry: I know right. So, I won’t forget it. So, thank you guys so much for watching. We really, really appreciate it. Make sure to share this video. We appreciate you doing that. Let us know if we can help you. Hey, Mark what’s up. Good to see you guys. Thanks a lot.

Kandas: Bye guys.