Creative Real Estate Investing – Deal Making Negotiation!

People are always asking me how to put a creative real estate deal together.

Let’s take a look at a couple of examples to show how we can begin to put a plan in motion through presenting an offer that will be accepted as a Win-Win contract.

Take a look at the following examples:


The seller is stuck on a $300,000 sale price, rents are high, and property is in excellent condition


  • Lender loans $240,000 for new first mortgage (80% LTV)
    • You, your partner, or even the seller applies for the loan.
  • Seller holds a second mortgage (terms)
    • Terms: $40,000 @ 5% interest only payments – 7-year balloon
  • You put down $20,000 cash (OPM)
    • Other People’s Money – cash/IRA/CD/credit card cash advance

This is a basic example of a ‘no money down’ (not your money), and partner with credit means no credit needed (not your credit).


Here’s a scenario for you to contemplate: Three siblings have inherited a free and clear property and they do not get along. They are demanding $50,000 cash each, bringing the sale price to $150,000 FIRM! With repairs, the house will be worth $200,000.

Repairs needed:          Roof                $15,000

                                    Windows         $5,000

                                    Paint                $5,000

                                    TOTAL           $25,000

Current Estate Appraisal is $135,000 based on its current condition.


During all conversations, gently remind them of the obvious: It will not sell to anyone above the appraised value…but if they work with you, they will get what they want and you will get what you want – the property.

What questions should I ask?

I ask the brother who is handling the transaction what he and his siblings are going to use the money for.

  • He says that he is going to have an $80,000 addition put on his own personal house and has $30,000 in the bank but needs $50,000 from the sale to avoid having any loans associated with the addition.
  • His brother wants to buy a used sportscar for $45,000.  He is just going to blow the money all at once!
  • Their Sister has some credit problems and owes about $41,000 in credit cards She is planning to use the money to get out of debt.

How can we make it work?

  • On his behalf, use your negotiation skills with his contractor who will be building the addition.  Possibly negotiate with the supply house for materials. Possible result: $13,000 saved.
  • For his brother, use your negotiation skills with the auto dealer to get a lower price, and possibly finance the sports car with your good credit for better payments. Possible result: $7,000 saved.
  • For his sister, negotiate with the credit card companies or work with a credit counseling company. Possible result: $22,000 saved.
  • The total of these is a possible result of savings up to $42k cash that you deduct from each respectively for your efforts.

It now looks like this: subtract the $42,000 from the previously agreed upon price of $150,000. The adjusted cash needed is $108,000.

They can hold three separate mortgages for their respective differences from the amount you saved them and the balance that you now owe each of them. Assure them that you will pay them off very shortly, say within six months.  You then fix up the property then apply to a traditional lender to refinance and pay off the mortgage balances totaling $108,000 based on the after-repair value of the house being $200k.

That’s a good deal!  Here’s a better deal: The sellers jointly hold one single mortgage for a longer period of five or more years. The entire amount of the mortgage is $108,000 which is the total amount owed to them jointly since you reduced the balances through your negotiation skills. Then sometime in the future, you tell them that you are coming into some money within the next month. If they can agree to take $80,000 for the balance, you tell them that you will have all their cash within that month. If not, they have to wait out the terms of the mortgage, which you negotiated to be the longest time possible. This saves you another $28,000. I have used this method many times. Total savings on this deal $70,000.00!  That’s a 40% total savings using creativity!

To be creative you may have to seek out a partner who has this right brain creativity, or with some very different than normal thinking. After several transactions you’ll begin to develop some skills to begin making your own creative deals.

You should use as much creativity as possible when structuring your purchases when acquiring properties. Most of your profit should be made when you buy, not when you sell. This means using creative deal making strategies.

I do hope that this article beginning to open your mind to the successful millionaire mindset that awaits you!

I’m here to help you to fulfil your dreams & goals,

So, I’ll See You Over the Top!

– Alan David Kosinski, Life Extraordinaire

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In each future article I’ll take you closer to more wealth through empowering and educational articles. Until then, see if you can discover ways to immediately implement what you learned from today’s message.

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