Welcome to our Blog

Our goal is to educate you on all the exciting facets of Commercial Finance. With over 25 years of experience we have a lot to teach you over the next couple of months. If you want to join our growing company we are always looking for new team members.

Tuesday, December 16, 2008

Daily Observation - Negotiation Tactics

As nothing is happening in the world of SBA Finance, and the FED bored us today with a rate cut almost to zero, I thought I would borrow some advice on real estate negotiation from George Ross, Trump's Attorney and head real estate attorney for the Trump Organization. George Ross wrote a fabulous book named Trump Strategies for Real Estate: Billionaire Lessons for the Small Investor.

Whether you like "The Donald" or not, these words are truly words of wisdom.

Whether you’re involved in real estate or another entrepreneurial endeavor, you’re always working towards a major objectives. Sure, things don’t always run as smoothly as we would want them to, and sometimes you’make concessions (or “sweeten the deal”) in order to make it work.

But what do you do when you find that you compromised so much that your big picture objectives are no longer in sight? The ultimate goal of any deal is to feel satisfied and better off than before you started working on it. But what do you do if you don’t see that realistic possibility anymore?

Don’t waste your time – it’s more valuable than money. If you don’t see the benefits of the deal anymore, have the willpower to walk away from it.

So how do you know when to walk away? Here are some questions to ask yourself when you notice things change drastically:

Does the deal still make sense to you? Before you even start a new deal or venture, figure out what you want to achieve. This will help you stay focused throughout the process, so when things take a turn for the worst be able to acknowledge the reality of the situation and act accordingly. You’ll be a lot better off admitting a once strong deal has become weak it is better to walk away than see it all the way through.

Do your alternatives look a lot more attractive? To do business from a position of strength, you have to have the ability to look at various potential deals or paths you can take. If you keep the old saying “there are plenty of fish in the sea” in mind, then you’ll ensure that you won’t kill yourself trying to catch one of those fish.

Has the atmosphere changed from cooperative to hostile? People engage in business with people they trust and have a rapport with. Do your best to distinguish between the deal-makers you trust and the deal breakers that drive you crazy.

If your answer is yes to all of the above, then it might time be to stop making concessions and start pursuing another venture. After all, you don’t want to sweeten a deal to the point that it gives you a financial cavity.

I hope you enjoyed tonight's slight deviation. Remember for your next commercial investment visit us at loanforbiz.com, the home of Lightning Commercial Funding. Also don't forget to sign up for your 10 FREE Reports to GET Your Next Loan Closed.

No comments: