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Real estate investment is, above all, a people business. Sure, you need knowledge of the market, state laws, the important financial analysis tools, etc. But all that knowledge means nothing if you don’t know how to connect with people. After all, you have to deal with buyers, sellers, lenders, appraisers, contractors and a whole host of other individuals and convince them to work with you. Of course, there are a few individuals who are simply “born naturals” at connecting with people. They have an advantage over those of us who are less fortunate in that regard. But it accomplishes nothing to envy “naturals” and bemoan the fact that we don’t have their innate talents. It’s a waste of time. Here’s an important fact to remember: you can learn how to deal with people effectively! All it takes is time, practice and patience. Practice the skills listed below until they become second-nature, and eventually you’ll have people saying about you, “Boy, what a natural!” People Skill #1: Be a Great Listener! The number one mistake real estate investors make is this: they talk too much and listen too little. Sometimes, we get in such a hurry to make a deal we blab on and on, ignoring the needs and wants of our customers (buyers, sellers, realtors, etc.). The net result—customers think you don’t care about them (at best) or peg you as an egomaniac (at worst)! In order to conclude successful deals, the first thing you have to do is make people comfortable with you. Now whole courses have been written on listening well. You can spend a fortune on them if you want, but they all teach the following essential skills and you’ve got them for free! • Listen twice as much as you talk in initial conversations or meetings. I’m sure you’ve heard the old motto, “You only get one chance to make a good impression.” An effective way to make that a great first impression is simply by listening. People want you to understand their needs, frustrations, problems, etc. By listening closely, you demonstrate that you have a genuine interest in them as people. There’s also a practical benefit—once you learn their needs, you can tailor your offer more precisely to meet those needs. • Use prompts. A “prompt” is a simple technique to keep a customer talking. The technique involves using short phrases like, “Tell me more…Go on…I hear you….Go on…Uh huh,” etc. Use of these phrases tells people that you’re listening and want to hear more. • Display positive body language. This technique also shows that you’re interested in the person and that you’re paying close attention to what he or she has to say. Positive body language techniques include a relaxed, yet alert posture…making good eye contact…nodding your head…subtly leaning forward…and writing down what they say. On the flip side of the coin, the worst thing you can during a meeting is answer phone calls, read papers, fidget, interrupt, etc. All those actions tell the person that you’re not important to them, and that can kill a potentially profitable deal in short order. • Use brief summaries. A great way to tell a person that they’re being heard is to summarize main points during a conversation. For example, you might say, “Jan, what I hear you saying is that you’d like a home in a good, stable neighborhood that’s safe for your kids.” (There’s a second benefit to this technique. It keeps “motor mouths” from getting off track and wasting your time and theirs!) Don’t go overboard with the above techniques (e.g., summarize constantly), or you’ll come across as being manipulative. Instead, go with the conversation and insert them naturally into the flow. With practice, you’ll soon be a master of listening. People Skill #2: Match the Customer’s Language and Style of Speaking. It’s a fact that people are more comfortable with others whom they feel are like them. So, if a person is high energy and a fast talker, you can match those characteristics. Or, if he or she is slow and deliberate in speech, then you can adopt those traits. Again, don’t over do it, or they may think you’re mimicking them and get annoyed. People Skill #3: Stress Benefits to Customers This is the oldest rule in the sales book, but it’s one we often fail to follow because we’re more interested in the benefits to us. This is a mistake because every person we deal with as investors has the same unspoken question, “What’s in it for me?”, and they want that question answered before they’ll deal with us. So, your job is to discover the benefits they want (through good listening and questioning) and then show them that you’re the ideal person to provide those benefits (in a realistic way, of course). Many of the needs are common (e.g., save money, make money, avoid embarrassment, etc.), but every person feels these needs are unique to their present situation. So, your task is to identify those needs and provide specific solutions to specific problems. When you do that, you’ll find the whole deal-making process go much more easily and smoothly. Key Points: Listen well. Adopt a customer’s style. Stress the benefits. Adapting these techniques will help an investor interface with others in their everyday business. Jack Sternberg is a very experienced full time investor and the creator of the renowned “Buyers First Program”. As the “gurus’ guru”, he is well known by the professional creative real estate community as “Obi-Won Kenobi”. Having been a full time investor since 1977, Mr. Sternberg has been “at” the closing table more than 1,500 times. Mr. Sternberg has bought and sold in excess of 1,500 single family homes and 4,000 apartment units and participated in excess of 90 million dollars of institutional financings and over 750 million dollars of real estate transactions in total. Additionally, almost a million square feet of commercial space, both retail and office, and light industrial property has been owned and operated by Mr. Sternberg. Mr. Sternberg has built new homes, remodeled existing ones and operated a full service property management company as well as both a mortgage corporation and title company. With 30 years of full time investing experience, Mr. Sternberg has seen the highs and lows of the real estate investing business and has the depth of experience that lend value to his associations and most “gurus” can only dream about. Please feel free to contact Mr. Sternberg at
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www.askjacksternberg.com
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