Every human interaction is a negotiation. Whether you are communicating with employees, investors, friends or family, the language of give-and-take is at play. And the fact of the matter is, if you don’t ask, you don’t get. So, how can we leverage the ten commandments of negotiation to get more of what we want in the realm of multifamily real estate—and life in general?
Stefan Aarnio is an award-winning real estate investor, entrepreneur and author. He was named one of the Top 10 Real Estate Influencers to Follow by Entrepreneur magazine in 2017 and inducted into the Rich Dad International Hall of Fame in 2014. Stefan is the author of four books on real estate investment and negotiation, including X: The Ten Commandments of Negotiation.
Today, Stefan joins me to share the story of how he went from poor musician to millionaire real estate investor by becoming a student of negotiation. He walks us through his ten commandments of negotiation, explaining the importance of gathering information before you make an offer as well as having clearly written goals going into a negotiation. Stefan speaks to the idea of presenting an ‘offer of greater value’ and making people work for concessions. Listen in for Stefan’s insight around emotional decision-making and the key commandment of negotiation: Get what you want and get out!
Key Takeaways
Stefan’s journey from poor musician to millionaire real estate investor
- Teaching guitar and playing gigs, not good life
- Predictable way to get rich in Rich Dad Poor Dad
- Author, Rich Dad International Hall of Fame
The importance of negotiation in real estate and life in general
- Part of every human interaction
- If you don’t ask, you don’t get
The cultural differences around negotiation
- Every culture has own style, boundaries
- Deconditioned in name of commerce in west
Commandment #1: Get what you want and get out
- Pushing for more can kill negotiation
Commandment #2: Adopt a pleasing personality
- Student with no egos, rivalries came out on top
Commandment #3: Prepare diligently and collect information
- Know facts in advance to make offer on-the-spot
Commandment #4: Know what you want and have clearly written goals
- Outline one major, three minor points (i.e.: price, terms)
Commandment #5: Gather information before making an offer
- Newbies tend to make offers too quickly
Commandment #6: Always present an offer of greater value
- People will pay premium for service that solves problem
Commandment #7: Do not give concessions freely
- Make people work for concessions, get something in return
Commandment #8: Take what they WANT, but give what they NEED
- Manage wants, recognize double standard in transactional negotiation
Commandment #9: Obey non-linear time in the negotiation process
- Time can move forward, backward or break (manipulate for advantage)
Commandment #10: Become a student of human nature and irrationality
- Reptilian brain makes emotional decisions based on fear and greed
How the dynamics of negotiation change when a broker is involved
- Don’t usually make things easier
- Deal with seller directly if possible
Connect with Stefan
X: The Ten Commandments of Negotiation
Resources
Self Made: Confessions of a Twenty Something Self Made Millionaire by Stefan Aarnio
X: The Ten Commandments of Negotiation by Stefan Aarnio
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money—That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
Blackbook Journal by Stefan Aarnio
Michael’s Syndicated Deal Analyzer
Michael’s Deal Maker Mastermind
Financial Freedom Summit
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
