By Nathan Stitt
Mike Watson Investing

Ask Mike Watson how he “creates” profits in his own deals, and his answer is simple. Terms.

Terms, (the language and presentation of your contracts and offers) are often an overlooked part of investing. Mike often teaches that knowing your contracts and addendums is a critical part to investing success.

So, how do you use terms to create better profits in your investment deals?

First, our current market conditions are allowing us to negotiate amazing terms right now. Sellers have more urgent needs, and are more willing to agree to things like Seller Financing, longer closings, and other negotiated terms. Remember, Seller Financing is often even better for the seller than it is for the buyer. Don’t forget to educate sellers you work with on this point!

Second, use the Multiple Offer strategy! By presenting multiple offers, you are able to put your offer head and shoulders above other traditional offers. How do you put together a multiple offer? Mike Watson usually puts 4 different offers together in his multiple offers. The multiple offers have four different prices paired with four terms. Four example offers could be:

1. Seller Finance 75% (with highest offered price)
2. Seller Finance 50%, (with medium offered price)
3. Seller Finance 25%. (with lower offered price)
4. Cash at closing (with lowest offered price)

Sellers get excited about Multiple Offers because they see options they hadn’t seen before, and they see ways where their sale will make them more money than they’d anticipated.

Extra tip: On the Members Area of the MWI website, you can find complete and functional Multiple Offer spreadsheets that you can plug your numbers right into and use today!

Third, focus on finding the seller’s true needs. On a recent Training Call, Mike taught that most sellers only have 1-2 main needs. Inform sellers that meeting their needs is of foremost importance to you. It is amazing how sellers will open up and share with you when they see you want to create a win/win deal. Once you’ve found the seller’s needs, meet those needs in an overwhelming fashion.

Most sellers initially want a cash offer. Find out if they really need small payments over time, or just need a down payment with payments over time.

You will find that when you take care of the seller’s need(s) you will be handsomely rewarded with great deals. When you know a seller’s true need, you are able to negotiate a deal that works the very best for you the buyer, AND the seller.

To learn many more creating profits using terms make sure to be at the “Any WHERE! Any TIME!” Super Camp this January in San Diego. At this event, Mike Watson will teach extensively on terms, and recently promised to share 35 specific Seller Financing terms at the event!