12:32
How to "Steal" Real Estate: 12 Tips from Grant Cardone
Grant Cardone
Overview
This video provides 12 actionable tips from Grant Cardone on how to effectively communicate with real estate brokers and sellers to secure deals. Cardone emphasizes the importance of making a strong, credible impression from the outset, even when you are a new investor. The advice focuses on building rapport, gathering crucial information about the seller's motivation and the property's history, and strategically positioning yourself as a serious buyer. The ultimate goal is to "steal" real estate by understanding the seller's needs and leveraging that knowledge to negotiate favorable terms, ultimately leading to being recognized as a top buyer in any given market.
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Chapters
- The initial phone call or communication with a broker is critical for getting a deal.
- New investors must 'sell' themselves and their capabilities to brokers, even if they don't have a large track record.
- Leverage the names of other brokers or well-known figures in the industry to build credibility.
- Never admit to having done nothing; instead, frame your experience positively and focus on your future intentions in the market.
Building trust and credibility early on is essential because brokers are gatekeepers to deals, and they are more likely to work with investors they perceive as serious and capable.
If you haven't bought in a specific market, say, 'My name is Mike Johnson. We haven't bought in Indianapolis yet, but we are coming into the market with a goal to buy 100 units this quarter.'
- Express genuine enthusiasm for the broker's deal, even if you're not personally interested in that specific property.
- Inquire about the seller's motivation for selling and the urgency behind it; this is key to finding a motivated seller.
- Ask what happens if the seller doesn't achieve their expected price, as this reveals their true flexibility.
- Determine if the seller has urgency to sell, as this is crucial for negotiating a good price and 'stealing' the deal.
Understanding the 'why' behind a sale allows you to identify opportunities where a seller might be willing to accept a lower price or more favorable terms.
Asking, 'Why is the seller selling at this time?' and following up with 'But why now?' to uncover the urgency.
- Ask about the property's previous sale price to gauge its history and potential value.
- If the broker doesn't know, it may indicate they are an amateur or not being fully transparent, which is valuable information.
- Ask for the broker's opinion on the property's location and market, listening for exaggeration or lack of knowledge.
- Inquire about what the broker *dislikes* about the property to uncover potential issues or areas for negotiation.
Gathering detailed information about the property and the broker's knowledge helps you assess the deal's true value and the reliability of your contact.
Saying, 'I'm on the property right now. How would you rate this location?' to get the broker's candid opinion.
- Ask if the broker has worked with the seller before, as this reveals their relationship and how the seller operates.
- If the broker has represented the seller previously, mimic the terms of past deals (e.g., due diligence period, closing timeline) in your offer.
- Inquire if the broker has other properties they like better than the current one to uncover new leads.
- Transition to clearly stating your investment criteria (unit count, location, asset quality, price range) to open up the broker's entire inventory for future deals.
Understanding past transactions with the seller and clearly defining your needs positions you for future deals and helps the broker see you as a valuable, long-term client.
Asking, 'Do you have anything that you either have listed or have coming that you like any better than this asset?' to discover other opportunities.
Key takeaways
- Effective communication with brokers is paramount to securing real estate deals.
- Building credibility, even as a new investor, is achieved through confident self-presentation and leveraging existing connections.
- Uncovering a seller's true motivation and urgency is the key to negotiating favorable terms.
- Thoroughly investigating a property's history and market perception provides a significant advantage.
- Understanding a broker's relationship with a seller can inform your negotiation strategy.
- Clearly articulating your investment criteria opens doors to a wider range of potential deals.
- The goal is not just to buy property, but to 'steal' it by finding motivated sellers and negotiating from a position of knowledge.
Key terms
BrokerSellerDealCredibilityMotivationUrgencyAssetMarketplaceLetter of Intent (LOI)Cap Rate
Test your understanding
- How can a new real estate investor establish credibility with brokers when they have limited experience?
- What specific questions should an investor ask to uncover a seller's true motivation and urgency?
- Why is it important to ask a broker what they *dislike* about a property, and how does this information help?
- How can understanding a seller's past transaction history with a broker be used to your advantage when making an offer?
- What is the strategic purpose of clearly stating your investment criteria to a broker after discussing a specific property?