So, you have decided to invest in real estate, but you are unsure of how to negotiate real estate deals like a pro? Fear not. With some expert advice from Brant Phillips, who is a successful investor and realtor himself, you can be on your way to real estate success in no time.
Find more about it on Brant’s episode on the Icons of Real Estate Podcast!
In this article, we’ll take an in-depth look at some of the key tips Brant shares on his podcast and provide you with actionable advice so that you can enter into real estate negotiations with more confidence. So, let’s get started!
About Brant Phillips
Brant is one of those people who started small but quickly created a real estate empire. As a proverbial example of a “rags to riches” story, he bought his first investment property using his credit card. During the same year, he went on to buy multiple properties with no money down, and from there, there was no stopping him.
Today, Brant is an established real estate investor and licensed realtor with an impressive portfolio of rental properties that are worth millions. He also continues to flip homes and participates in other projects, such as new constructions, subdivision developments, and private money lending.
As a business coach, he owns the consulting business, Invest Home Pro, which was recognized as one of the fastest-growing companies in the US by Inc. 5000. Through this company, Brant offers real estate investment education to new investors who also want to make a splash in the industry. He was even featured on Fox News, hosting local seminars and training events for those who wish to learn about real estate investing. He also works with eXp Realty, focusing on helping real estate agents grow their businesses and generate steady passive income streams.
Lastly, Brant is a bestselling author, with his book, “Private Lender Playbook: How to Passively Invest in Real Estate as a Private Mortgage Lender“, becoming an Amazon bestseller.
Why Invest in Real Estate
Contrary to what a lot of people believe, property investment does not have to be expensive. And, the benefits of real estate investing are enough for anyone to get on board.
For starters, real estate tends to have a higher return compared to other asset classes, and the rental income can help you pay your mortgage and still pocket a significant chunk of change.
Also, real estate has proven itself time and time again as one of the best ways to generate consistent passive income streams that are largely unaffected by market volatility or other external factors.
Plus, it is an excellent way to diversify your portfolio and hedge against economic downturns or inflation. In fact, real estate values tend to appreciate over time, making this type of asset one of the best vehicles for long-term wealth creation and financial security.
Finding Real Estate Deals and Working with Your Own Money
Brant’s podcast episode, “How to Find Real Estate Deals and Work with Private Money Brant Phillips Tips,” is a great starting point for those interested in learning how to negotiate real estate deals like a pro. While you experience a downfall in the market, it also offers great opportunities for real estate investors to buy properties at lower prices.
Here are Brant’s simple, yet effective, tips for finding real estate deals and working with your own money.
1. Do not get swayed by negative stories about the market.
During market downfalls, you would hear stories of investors losing money and not making profits. Do not get discouraged by that. Instead, focus on the opportunity to buy real estate for lower prices and make a killing when the market bounces back up.
Taking Brant’s experience, for example, when the real estate market slowed down, he decided to take advantage of it and still proceeded to find residential real estate deals. When the market stabilized, his investments were already worth multiple times what he paid for them.
This entails that you should always look at the bright side of things and remain focused on your goals, no matter the current market conditions.
2. Understand “no money down” financing.
Brant is a big advocate of finding real estate deals with no money down. Instead of using your own savings, you can take advantage of real estate financing using other people’s money.
Having access to funds entails that you do not have to wait for a long time before you make the investment. You can close deals faster and reinvest the profits into another real estate venture down the line.
It also allows you to diversify your portfolio by investing in different types of real estate properties, such as multifamily homes or commercial real estate projects, which are usually priced higher than other options but offer higher potential returns.
3. Evaluate your equity.
It will greatly help if you have a good understanding of real estate equity. This is the difference between what you paid for a property and its current market value.
Brant recommends putting your money into properties with higher equity, as this will help you increase your returns and minimize risk in case of an unexpected downturn.
Also, you should always be aware of your portfolio’s equity and what you can do to increase it. It is important to monitor real estate prices, assess the appreciation or depreciation of real estate value in an area, and evaluate whether you can get a better return on your investment elsewhere.
4. Put together some partnerships to get financing.
One way to close real estate deals without shelling out your own money is to seek out private partners who are willing to invest in real estate and can provide you with the financing you need. This is an ideal situation as it offers good returns and much lower interest rates compared to using a bank loan.
Partnerships also provide you with more control over the terms of the contracts, with your partners not having to keep up with the changing interest rates, which means deals would be closed faster and easier.
Furthermore, real estate partnerships can be mutually beneficial for both you and your partner by providing a way to share the risks associated with your investments.
5. Add value to your offers to attract private money lenders.
Adding value to your offerings will work like magic in attracting private money lenders. In this aspect, Brant stresses the importance of educating potential lenders on real estate investments and how they can benefit from them.
He stated that, by showing potential lenders that you truly know your business and that you are confident in your abilities to get a good return on their investments, they will be more likely to participate.
For example, his “Private Lender Playbook” teaches private money lenders how to generate passive income. As Brant shares his knowledge, he is creating a good impression on lenders and giving them more reasons to invest.
If you have an impressive real estate portfolio, it’s even better as this will give lenders the assurance that you are a reliable borrower and that your investments are profitable. If you can prove to your potential partners that their money is being invested in something valuable, then getting financing would be much easier.
6. Have an exit strategy.
Real estate deals involve a considerable amount of money, and investors should always have an exit strategy. This means that you need to plan for the worst-case scenario if something goes wrong or the real estate market fluctuates.
Having an exit strategy ready allows you to anticipate risks associated with your investments, as well as plan for how to best avoid them. Knowing when it is time to pull out can help you minimize losses in case of unforeseen changes in the market or other external factors.
For more information on how to find real estate deals with your own money, you can listen to Brant’s entire podcast here: https://youtu.be/qtKXnBjPl_c.
Knowing Your Strategy for Real Estate Negotiations and Maximizing Your ROI
A real estate negotiation is an art form that requires practice and patience. For Brant, it is all about having the right strategies depending on the properties you are looking to invest in. From real estate flipping to buy-and-hold investing, here are some negotiation strategies that you can use for the most common types of investment properties.
Multi-family real estate deals are a great way to increase your portfolio. The most important factor that you need to consider is the total cost, not just the purchase price. You also have to take into account other expenses, such as taxes, repairs, and maintenance.
When negotiating multi-family real estate deals, it’s important to keep in mind that you should be looking for financial flexibility—meaning that you should aim to get favorable terms on financing so you can reduce carrying costs.
Moreover, you should think about marketing. There are resources, like podcasts, where you can gather useful tips from expert conversations. You can learn more multifamily marketing strategies here that you can use for negotiations.
Real estate flipping involves purchasing properties with the intention of reselling them for a profit. To be successful in this endeavor, you have to find the right property at the right price.
To negotiate real estate flips effectively, you should offer less than what is listed. This is because real estate agents would usually ask for a higher price to allow room for negotiation. Additionally, you should also estimate renovation costs and any other possible expenses before making an offer so that your profit can be maximized.
These types of properties can be especially profitable if you are able to buy them for a good price. When negotiating, keep an eye out for deals that can get you discounts and favorable terms.
But unlike landed properties, you will have to take into account the market in which the apartment is located. Consider the current rent prices, vacancy rates, and potential tenants in order to accurately estimate your return on investment.
For more useful information on buying these types of properties for investment, we also recommended apartment investing books that you can read.
Short-Term Vacation Rentals
This is where a buy-and-hold real estate strategy may be the most applicable. Short-term vacation rentals are ideal for investors who want to make a steady income from real estate without having to keep up with property management and maintenance costs.
During negotiations, you should look for properties that have good amenities and competitive rental rates. You must also factor in its access to public transportation, proximity to attractions, and safety.
Commercial real estate can be quite tricky to negotiate on and require a lot of market research. Before negotiating, you should consider factors, such as capitalization rates, rent prices, tenancy rights, and other important legal terms.
Moreover, it is also essential that you consider the surrounding real estate market in order to get a good estimate of the potential value of your property.
Regardless of the type of property you are investing in, always remember that real estate negotiations do not happen overnight. It takes patience and a lot of research to get the deal that you are looking for. So, take your time and use the strategies discussed above to get the best deals.
Start Investing with Brant Phillips Now!
Finding real estate deals like a pro is not easy, but with Brant Phillips’ tips and strategies, you can get closer to success. With his guidance, investing has never been easier—start taking advantage of these opportunities today!