How do you guys negotiate? Do you focus on terms or price or both? If you do negotiate on both, how do you do it without upsetting the seller?
seasoned investors and/or business people do not get upset with business dealings, offers or problems.
One thing I always try to remember is that adhering to the win-win philosophy makes it much easier to get deals done.
I also like to meet with the owners face to face to allow more free thinking and talking... eliminate the static and get right to business.
Focus on what the other party needs or wants. Really get it out of them... if time is the issue, then focus on closing fast, getting all of the engineering, title, atty paperwork done fast... If price, then focus on that aspect using different tactics ie holding paper, creative financing, lease option, etc...
I recently negotiated a medical building with the owner who let it be known he was sick of managing the property. I made him a two-choiced offer- the first, I would manage the property and create a lease option and pay him the asking price. The second choice allowed me to buy the entire property at a 25% discount (which was a lot closer to market value than his asking price anyway)...
In my opinion, both of these offers were fair and solved his problem. One option was paying fair market value and getting it off his hands and the other option freed him from managing the property, still received income, and had a nice tax advantage with the paper holdback and lease option.
We never came to a conclusion and the property is still available