Unveiling the Art of Negotiation: The Mao Strategy 💼💰

Greetings, fellow real estate aficionados! Today, we’re delving into the fascinating world of Mao, and no, we’re not talking about the famous Chinese leader. In this context, Mao stands for Maximum Allowable Offer, a crucial concept in the realm of real estate investing. 🏡💼

So, what exactly is Mao, and why should you care? Well, think of it as your secret weapon for ensuring you make a profit on every deal. Allow me to break it down with a simple example. Imagine you’ve found a property worth $100,000, and after crunching the numbers, you’ve determined that your Mao is $70,000. This means you can’t afford to offer more than $70,000 for that property if you want to meet your profit goals. 💰💡

Now, here comes the ninja part of the strategy. When you’re in negotiations, the last thing you want to do is start with your highest offer right off the bat. Why? Well, imagine saying, “Hey, I can offer you $70,000.” If they decline, you’ve essentially played your best hand right out of the gate, leaving little room for negotiation. Not very savvy, right? 🤷‍♂️

Instead, here’s a more strategic approach: Start with an offer that’s $10,000 to $20,000 less than your Mao. In our example, that means beginning with an offer of $50,000. Now, when they react with shock or hesitation, you’ve got room to maneuver. You can say, “I understand that might be too low. Let me consult with my partner, and I’ll get back to you.” 🤝🤔

Now, here’s the kicker—they don’t know that you already have that extra $20,000 in your back pocket. It’s your secret weapon, your fictitious partner who needs to be consulted, and the time you need to take to make them believe you’re considering their perspective. This builds trust and gives you the flexibility to raise your offer incrementally. 🕵️‍♂️💼

By employing this strategy, you maintain more “skin on the bone” for your deals. Even if things don’t go as planned, you’ll have some wiggle room to adjust your offer if necessary. Let’s say you initially aimed for a $25,000 profit. Well, if you need to give a bit more, like $5,000, you’ll still walk away with a tidy $20,000. 🎉💰

One crucial detail to remember: Don’t forget to add your fee to these offers. That’s how you make your money. After all, it’s not just about the selling price; your fee is your reward for your hard work and expertise. 💸💼

So, there you have it—the art of negotiating with Mao as your ally. It’s a delicate dance of strategy and psychology, and it can make all the difference in your real estate investment journey. 🚀🏡

Next time you’re in negotiations, remember to use this ninja tip, and you’ll be amazed at the results. Keep those calculations in mind, and don’t forget to sprinkle in a few emojis to keep the conversation engaging. Happy negotiating! 🤑🏡🤝