How to Negotiate a Real Estate Portfolio

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Portfolio deals don’t happen. What does happen is that you buy one house at a time. So what you do is you go to we have a portfolio seller right now we’ve I think we’ve bought 51 houses from there 200, that’s taken two years, what I learned probably five, six years ago is that you get into these big long conversations with sellers, three, four or five months. And you’re like, why is this not moving forward? Every time they say going to sell a contract? They’re going to do this or do that they then tell me a new reason why they’re not selling one day, I finally just go, why don’t we just start with one freaking house? I don’t even know if you’re real. You’re making me feel like you’re not real. And then all of a sudden seller goes? Sure. Let’s start with one house. I was like, Oh my gosh, why didn’t I just do that in the beginning.

So guys, if you ever run into a seller that has more than three houses, more than three houses, you will never buy all of those in one fell swoop, what you need to do is just say, give me the worst house you have. I will prove to you that I can perform based on what we promise. The relationship that I’m referencing is a lady named June I’ve probably brought her up 100 times she has 200 houses. Guess what she promised me she’d sell me all 200 houses two years ago, we’ve bought 51 houses. So how many houses does she have left? She has 20 houses left. And you know what’s funny is she never tells me she’s selling them to anybody else.

She’s always telling me you’re the only person I’m talking to. You’re the only person I’m talking to. I love you. You’re amazing. And then what happens is I get students of ours that call her and they go oh my gosh, pace. I’ve got this lady named June. She’s She I’m the only person she’s talking to. I’ve got these five houses. I go Yeah, I just bought those last week. She just forgot. I literally here’s the title, I own them. Meanwhile, June the entire time is a freaking ninja. She is unbelievable negotiator. So when you guys run into people that have portfolios, they’re smarter than you. They are better negotiators than you. That’s how they acquired all that real estate.

This video Q&A comes from Pace’s Subto Mentorship, which you can learn more about here:

So when you run into a portfolio person, just say, Man, I’d love to talk to you about all your houses. But why don’t we just start with a first date? Why don’t we start by holding hands before I try and kiss you show me one. Show me the biggest turd you have in your portfolio and I will buy that house, I will prove to you that I can do what I say I can do. I can show my credibility and my consistency. And you can see my operation and how it operates. And then we can do your second house. So that’s what happened with June she finally sold me one house when I hit her up with just one house. And we’re doing this with other portfolio deals too.

I have a deal right now in Gainesville, Florida, not related to the story I was telling you. It’s about a $1.5 million deal. I think there’s like 14 or 14 to 17 ounces in the portfolio. I am actually thinking I’m going to accomplish the purchase Okay, and here’s why. Because I got a gentleman named Bruce Mac, who I will be bringing to you guys in the future. His name is Bruce Mac who teaches sellers had to sell an entire portfolio without paying capital gains and tax depreciation recapture by structuring a trust the proper way and letting me buy the trust or be the beneficiary interest beneficial interest. So the seller has a financial requirement to sell all the houses at the exact same time.

So I’ve been working on this guys for four years, and I’m about to accomplish my first time in January. Meanwhile, I see all these students going I ran into a portfolio I ran into our portfolio. I’m working on a portfolio who wants to guys, you didn’t run into a portfolio, you ran into a phenomenal negotiator who’s using their entire portfolio to manipulate you to sell one house to you at a very high price. So you need to start by telling them I want the crappiest house you have the one you hate the most let me solve that problem. Let’s build rapport and relationship and then we can talk about the rest. Don’t let them use their portfolio to against you as negotiation. Don’t let them do it.