FIRST A SECRET in real estate investing negotiation strategies you need to know:
“If you have to explain your authority / position or advantage, you do not hold the stronger frame”.
Negotiation and persuasion is understanding WHAT frame you’re up against and then RE-framing your approach.
I learned about ‘perspective frames’ in Oren Klaff’s book Pitch Anything
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Here’s a quick video that explains his idea of Frame Control:
Now I’m influencing more joint venture partners using this as one of my real estate investing negotiation strategies…
As you’ve seen in the video, a frame is basically our own individual perspective. Simply put.
In other words, if you carried an imaginary window frame in which you looked through to see and interact with the world, you would interpret things in your own way.
If you passed that imaginary window frame to another person, would they see and hear the world the same way you did?
Probably not.
So it means EVERYONE has their own ‘frame’.
And there are THREE primary frames we will encounter as real estate investors:
- Power frame
- Time frame
- Analyst frame
Each of those could be met with one or a combination of these response frames:
- Power-busting frame
- Time-constraining frame
- Intrigue frame
I won’t get into major detail about all of the frames here, but will give you a tip:
The most common frame you’ll come up against in the real estate investing world is probably the analyst frame.
Chances are, you’d respond with the ‘intrigue frame’.
Now there’s something to understand here. TWO frames will never co-exist for a long time. When frames meet, they COLLIDE – because one is trying to take over the other.
Even though this sounds like a ‘nasty’ negotiation situation, it’s really not…it’s happening below the surface, at the unconscious level.
I’m just bringing it to the surface for you so you have more control of your own frame to steer the conversation in the direction you want.
Because this is where so many real estate investors LOSE.
They resort to trying to convince people about their authority and advantage.
DEALING WITH FRAMES:
Here’s an example of how to deal with the analyst frame:
Again, you can read more about all three frames in Pitch Anything.
You can also see how I’ve adapted all of it to use for your real estate presentations inside the Joint Venture Presentation Formula.
So when someone is diving into the details, you are losing control of the frame.
And when I say “diving into the details”, it’s BEFORE you’ve ‘allowed’ them to SEE the details.
For example: Let’s say at the beginning of your presentation you give an overall picture of your real estate deal and tell someone it’s going to cost $250k to buy the property…
If they start asking more about the costs and details at this point, you’re losing control.
And believe me, MOST real estate investors DO lose control here because they believe THIS is someone who is “hot” and wants to know more about the deal.
That may be true.
But the moment you give them something to work on … like calculations, statistics etc – they’ll shut down on you.
They won’t hear anything else because they’re mind is racing with everything else already.
Can you see why most investors fail at getting money?
Because when you come up against an analyst frame (which BTW investors LOVE because they can talk about numbers and statistics) they are doing more damage to their chances if they don’t understand WHEN to present those details.
So the question remains: “how do we DEAL with someone who is asking about details?”
It’s simple.
“The property will cost $250k, closing costs and down-payment $60k with a conservative 8% rate of return. I’ll help you verify this later on, but for now let’s focus on how I can help you [INSERT THEIR BIGGEST PAIN POINT HERE]”. For me it’s “stop losing money in your mutual funds”
You could also just say “…for now let’s see if my real estate model is a good fit for you.”
The point is, you want to maintain control of the analyst frame and ensure you give them the data and details when YOU are ready.
To learn more about frame control – check out Oren Klaff’s Pitch Anything.
Do you want to use this stuff when presenting to joint venture investors? I teach all of it inside the Joint Venture Presentation Formula.
Talk to you soon,
– Joey