Using a little Jaw Jaw

December 5, 2014 by  
Filed under blog

I am in the process of updating 4 of the 8 books I’ve written, which has been a fascinating and mind opening task.  First of all, it’s quite a stunning experience to read your own words that were written many years ago and then to come across something that you find to be very profound. I found myself saying “Wow, this is a pretty good money making method and is quite inspiring stuff. Did I write this?” then I’m thinking,   “I can’t believe I wrote this. Where did this come from?” However, I must admit some of what I wrote also brings on thoughts like “Ugh! This is kind of simple minded and even stupid. I’ve got to change this!”

While updating and re-writing some of my book The Courage to be Rich, I was struck particularly hard by what I wrote about the huge power of negotiating and the incredible financial rewards that come just from smart and calculated discussions.  Yes, just by using your head and your words you can make huge financial returns on your money! Winston Churchill said “Jaw Jaw is better than war war” and I will add that, Jaw Jaw alone can make you 100% in returns on an investment too!

With good negotiations you can take a mere 5% discount combined with another 5% in earnings and come up with a 100% return on your money. Sound impossible? Not at all. I have done it myself a few times and others I know have done it. It’s in the numbers.

For example let’s say you found a very attractive piece of real estate and the seller was very motivated to sell it. With good negotiating skills you could convince him to sell the property for just 5% lower than its fair market value and maybe even a little beyond that and then you buy it with just 10% down. Now, using another round of skilled negotiations, you convince a buyer to pay 5% more than the property’s fair market value by making the property sound better than it may appear to be. Of course, fixing it nicely helps too. Then, guess what? You’ve just scored a 100% return on your money; you invested 10% then saved 5% on the buy and made 5% on the sale of it for a 10% profit, or 100% of what you put down on it!

If you get tripped up at the point where I say you are only investing 10% on the property, that’s not hard to do either. Further negotiations can convince the seller to carry the mortgage or you can use a bank for the mortgage and a signature loan so in total you have 90% financing.

Go ahead and run your own numbers on any size property with those percentages and you’ll always come out with that huge fat return of 100% on your money by just using your brain and your words to convince people of what great deal you make them. These are just some of the gems you can find in my books which are available online on places like Amazon and on my website.