The following Q&A was completed as part of our conversational Commercial Real Estate FAQ Interview Series, we hope you find it helpful.
When you’re working on any sort of real estate investment negotiation building relationships is important. Take the time to get to know sellers and property owners, and go that extra mile to see if you can build a great working relationship with them. When building these relationships, make sure to walk the walk as you talk the talk so that your reputation matches the type of reputation you’re trying to build.
Richard Wilson: Number one tip you can provide on negotiating the price down on a commercial real estate property?
John Manes: I don’t know because I’ve never really negotiated it down! Relationships I think is probably the big thing. I have a new financial analyst, so we went to look at a property in Lake Jackson, which is south of Houston last week and he said “Why are we driving here? I mean, it’s really not due diligence, so why are we going here?” and I said “Well, we’re going to go meet the owner, the broker can’t meet us there, so we’re going to go meet the owner and we’re going to see if we can build a relationship with him.” So I get down there, we start talking and everything with the owner, and we spent probably an hour and a half with her and by the time it was all said and done, I had her convinced to carry a private mortgage on her property for us. Well, that’s not going to happen through a broker. That’s not going to happen through – well, it can happen through a broker. They want to know that they like you and trust you and things like that, so…
John: The number one tip I would give is its still a relationship business. Get out there and build those relationships, and they’ll prosper. But when you’re out there building it, don’t screw people left and right because you’re going to get a reputation, and you’re not going to get deals done. So go out there, and be honest, and be truthful, and if it’s not a deal for you, tell them it’s not a deal for you and so on. So, the number one tip I could give is go out and build good strong relationships and they’ll pay off.