The “Secret Sauce” for Buying Rental Properties BELOW Market Value

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 19 February 2025

⏱️ 48 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Want to learn the secret to snagging rentals below market value? Every successful investor has this one crucial skill, and it’s often the difference between getting the door shut in your face and coming away with a discounted property. Even rookies can learn this skill, and today, we’re bringing on a pro to show you how! Welcome back to the Real Estate Rookie podcast! Today, we’re joined by J Scott, who delivers a masterclass on real estate negotiations with sellers, agents, contractors, vendors, and anyone else you encounter in your real estate investing journey. In this episode, J will show you the best way to sharpen your negotiation skills, the questions that will help you determine a seller’s motivation, and how to stand out to sellers in a competitive housing market. But that’s not all. If you’ve ever wondered where you should set your starting offer and how to get over your fear of insulting the seller with a “lowball” bid, J’s got the answers. Better yet, he’ll show you how to do this without creating any kind of animosity between you and the seller. In fact, he’ll share how you can do the exact opposite by building rapport and creating a win-win for both sides! In This Episode We Cover: Using the power of negotiation to buy rentals below market value The number one way to sharpen your real estate negotiation skills Crucial questions that will help you determine a seller’s motivation How to make your offer stand out (even in a competitive market) The two tactics you must master to become a successful negotiator How to avoid an adversarial relationship when entering negotiations Two telltale signs that it’s time to end negotiations with a seller And So Much More! Links from the Show Ashley's BiggerPockets Profile Tony's BiggerPockets Profile Join BiggerPockets for FREE Real Estate Rookie Facebook Group Real Estate Rookie YouTube Follow Real Estate Rookie on Instagram Get $100 Off Your Tickets to BPCON2025 in Las Vegas, Nevada Grab “The Book on Negotiating Real Estate” Sign Up for the Real Estate Rookie Newsletter Find an Investor-Friendly Agent in Your Area Building Rapport and Negotiating with Sellers for a Great Deal Connect with J PropStream (00:00) Intro (00:37) Negotiations 101 (04:24) Why Negotiation Matters (08:00) BEST Negotiating Tactics (15:45) How to Sharpen Your Skills (21:34) Making “Lowball” Offers (28:00) Questions to Ask Sellers (35:36) How to Stand Out in 2025 (38:24) When to End Negotiations (40:44) Connect with J! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-525 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Negotiating underlies so many aspects of real estate.
0:04.0	Learning how to negotiate can transform how you close deals and make deals work for your strategy.
0:09.1	Good negotiators aren't good salespeople.
0:11.5	They really are people that are just good at building relationships, rapport, and gathering information, getting that knowledge is power.
0:22.9	This is the Real Estate Rookie Podcast, and I'm Ashley Care.
0:26.5	And I'm Tony Jay Robinson, and we want to give a very, very warm welcome to none other than
0:31.3	Jay Scott.
0:31.9	Jay, thanks for joining us today, man.
0:33.2	Hey, thanks.
0:34.1	I, you know, I love being on the show with you guys, so thanks for having me back.
0:38.0	Yeah, Jay, why don't you start off with telling us a little bit about your experience with
0:42.9	negotiation? Yeah, so I've been negotiating for a long time. I started out in the corporate world.
0:49.4	I did tech for a while. Actually spent much of my career at Microsoft, and they sent to some really good
0:55.2	negotiation courses when it came to business negotiation. So I kind of got my start long before
1:01.6	real estate. And then 2008 jumped into real estate. We flipped about 500 houses. So when you do that,
1:08.0	you have about a thousand negotiations. You have a negotiation on the buy side.
1:12.0	You have a negotiation on the sell side.
1:13.6	That doesn't include the thousands of negotiations with contractors and agents and attorneys and title companies and appraisers and everybody else involved in the transactions.
1:23.8	So, yeah, I realized early on that being able to negotiate well really can make a big difference in your bottom line.
1:32.1	Even if, I mean, if you save $100 on a transaction and you're doing 20 or 30 transactions a year, that adds up to thousands or tens of thousands of dollars.
1:41.6	Over a career, you can literally make or lose millions of
1:44.5	dollars by being a good negotiator or conversely not being a good negotiator. For rookies that are
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.