10

Technique No. 10 Supply the Seller What He Needs

The question of “seller needs” is a complex one. Often buyers resort to sophisticated psychological observation and strategic interrogation in order to penetrate the seller’s wall of secrecy. That is fine as far as it goes. But the best approach is nearly always the direct one in the form of one simple question: “What do you need the money for?” There are more subtle variations, such as, “What do you plan to do with the proceeds of the transaction?” But it all boils down to the same thing – letting the seller know that you can solve his problem best if you know what he plans to do with the cash coming to him as a result of the sale.

Often the seller has consumer needs that the buyer could satisfy by carrying the necessary amounts on charge accounts or credit cards. In this way, the immediate upfront cash needs are spread out over time. Frequently the seller will be anticipating financial obligations that will require a set amount of cash each month beginning at some time in the future. If the buyer is on his toes, he can help the seller translate the down payment into installment payments that can be taken over by the buyer in lieu of a heavy cash down payment.

One buyer we know of in Stanford, California, gained insight into the seller’s need for future day-care funds and persuaded her to reduce the down payment by $13,500 in exchange for his providing monthly payments toward her day care for the next thirty years at very low interest. He was able to supply the seller what was needed and spare himself a heavy down payment obligation.

Technique No. 11 Assume Seller’s Obligations

Often a seller is planning to apply down payment funds to debts he my have or payments that may be overdue. If the buyer can arrange to assume these debts and then pay for them over time, he can avoid having to come up with the down payment funds all at once. One Cleveland buyer of a small rental home was able to take care of the seller’s arrears mortgage payments and utility bills and then cover some consumer debt obligations through installment payments. The result was the relaxation of the up front cash requirements for the transaction.

Technique No. 12 Using Talents, Not Money

A buyer will often have professional expertise that can be “traded” in lieu of down payment funds. Contractors, painters, landscapers,

10