Commercial Wholesale Training
Ed and Bob Diamond
Module V
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Commercial Wholesale Training
Agenda for Today
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Module V- Make Offers that Stick
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We will cover Chapters 1 Through 3 of
Module V
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Commercial Wholesale Training
Chapter One – Negotiating 101
Sealing the Deal
Don’t put pressure on yourself – some
deals will happen, some will not.
Sometimes you will blow it, sometimes
you won’t. If you stick with it you will
make money.
 Goal is to make a deal you can wholesale
profitably. Negotiate a deal your buyer
cannot resist
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Commercial Wholesale Training
Winning Strategies
First start with the end in mind - know
your buyer’s exit strategy.
 “Flip” Deals are more price driven, long
term holds are more terms driven if seller
will hold financing.
 Think about the exit strategy from the
beginning otherwise you will wander and
be unfocused in negotiations
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Commercial Wholesale Training
Run the Numbers
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Run the rental and flipper spreadsheets and
move the numbers around (purchase price
and anything else you can change) to see
what happens to the attractiveness of the
deal as the numbers change
Do Not monkey around with numbers such
as rents to putting “potential” but
unrealistic numbers in to make your deal
work. Do not talk yourself into a deal
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Commercial Wholesale Training
Ask about the Seller
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Who is he? What else does he own? Why
is he selling? Can he finance? What will
he do with the sale proceeds?
The book talks about brokers which a retail
buyer uses – we go direct to sellers.
Ask local property managers about the
property and the area. They are not
commission incentivized.
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Commercial Wholesale Training
Decide upon your price and terms
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Decide for yourself what you can do as far
as price and terms.
Put out an offer that drives towards your
solution.
Know your price and terms in advance.
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Commercial Wholesale Training
Its All About Relationships
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Take the time to build rapport with the
seller.
Commercial deals can take time to put
together because you need to build rapport
and trust.
Don’t get frustrated – it is a process and
you will get everything you need through
people.
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Commercial Wholesale Training
Relationships Lead to Referrals
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A potential seller may not sell his property
but can refer you to other deals.
Referrals are easy and good business.
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Commercial Wholesale Training
Dig Deep for Information
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Ask why the Seller is selling – and then
dig deeper.
What will he do with the proceeds? If
cashing out why not take payments at a
higher interest rate than the bank will give!
What offers has the seller turned down?
Why have buyers passed on this deal?
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Commercial Wholesale Training
Find the Seller’s Needs
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Find out what the Seller NEEDS not what
he says he wants.
Maybe you will have a solution the seller
did not think of that will meet his needs.
Ask the seller what his ideal offer would
look like and where he has room to move
from that.
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Commercial Wholesale Training
Find the Seller’s Needs
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Find out the Seller’s timing needs. Often
as important as the sales price.
After you know the Seller and have trust,
know his motivation to sell and timing,
you can talk price and terms and put the
property under Option.
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Commercial Wholesale Training
Negotiate the Option
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Make clear to the Seller that you like the
property but will need to bring in your
investors to look at the deal.
They come in once you have the property
under Opton.
The Option gives you X (30) days
exclusive then Seller can cancel with three
business days notice to you
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Commercial Wholesale Training
Next Class
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Module 5 - Stealth negotiating, minimizing
closing costs and getting cash back at
closing
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Commercial Wholesale Training