According to Harvard Business Essentials, “Negotiation– whether brokering a deal, mediating a dispute, or writing up a contract – is both a necessary and challenging aspect of business life.” Unfortunately, far too few people are prepared for or equipped to handle this aspect of life. The purpose of this article is to give you a basic overview of the skill of negotiation, and some general tips for its use.

There are two-main types of negotiation: distributive and integrative negotiation.

Defined by Negotiations.com, distributive negotiation is “a type or process that normally entails a single issue to be negotiated. The single issue often involves price and frequently relates to the bargaining process. Also referred to as ‘Win–Lose’, or ‘Fixed–Pie’ negotiation because one party generally gains at the expense of another party.”

Distributive negotiation is generally a very uncomfortable, in-your-face method of resolving disputes or points of contention. Often, such sessions consist of each party strategically attempting to strong-arm the other party with the objective of persuading or forcing the other party to knuckle under and concede defeat. Rarely do both parties express satisfaction with the final outcome of such negotiations, and often, neither party is fully satisfied with the end agreement. The practice of using distributive negotiation is slowly, but steadily, falling out of favor with many professionals whose line of work calls for regular negotiation with others. However, there are still some situations in which utilizing this approach to negotiation may be your best bet. As a general rule though, it would be wise to consider another approach if the person with whom you are involved in a dispute is someone:

• with whom you will have continued interaction past the resolution of the current situation. One or both of you is likely to harbor bitterness and ill will toward the other, especially in circumstances in which the negotiations became particularly heated or one or both parties illustrated their willingness to play hardball. Even if both parties reach an agreement they can both live with, the end will not necessarily justify the means in the minds of either one of the participants, and lingering feelings of resentment are likely to remain.

• who has less to lose than you do. Never try to strong-arm someone who has more leverage. The old saying has always held true, and will continue to hold true: “The person who cares the least is in control.”

• who has the ability to tarnish your reputation. Do not go toe-to-toe with someone who is well-known and generally liked or respected in your community, organization, or industry. Successfully engaging in distributive negotiations requires many techniques that could be perceived by some to teeter on the borderline of being underhanded or sneaky. You do not want to anger or wound the pride of someone who can ruin your good reputation with the people whom you rely upon for success, such as customers, coworkers, associates, or other business contacts.

If there is nothing to discourage or prohibit you from playing hardball and the other party clearly has no interest in investing the time or energy in reaching a conclusion that benefits you as much as it does him or her, consider the following points:

Play it cool. Do not seem overly excited about what they have to offer. Coming across too eager makes you seem as if you are in desperate need of something that they have to offer. This gives them a very strong standing in negotiations.

Mum’s the word. Share as little information as possible with the other party. Make them wonder what you are up to. This tactic will generate anxiety and lead them to second-guess their position if used properly.

Don’t show any weakness. Be careful how you phrase things. Never, under any circumstance, begin a sentence with, “I don’t suppose you would be interested in…” or “I’m sure you wouldn’t want to…” Be confident, act aloof, and exude power and superiority. Do not undermine your position.

Search for weakness. Has the price of that vacation property you are eyeing been reduced three times in two months? Does that car salesman rigidly stick to a script and have absolutely no idea how to answer your more difficult questions? Have you been told that the businessman with whom you are interacting relies on his partner to be the bad guy because he has a hard time saying no and sticking to it? Look for any weakness that you can exploit in order to get the upper hand.

Portray yourself as a hot commodity. Tell the representative about the better, more appealing offer that their competition just extended to you. But if you are going to make something up, make it believable. If you get too greedy and demand a ridiculously good deal, a company is unlikely to even try to compete with the deal you claim to have been offered.

Create a fear of loss. Studies show that people are more likely to budge and be willing to compromise when they perceive that they are at risk for losing something they already have, rather than when they are being promised something that would benefit them in some way.

Express your willingness to walk away…but only if you really are. Be sure you really can walk away. They just might call your bluff, and, in fact, are more likely to do so if they sense that you are not serious.

Hire appropriate representation. In a situation which involves legal issues, whether criminal or civil, do not attempt to represent yourself, as doing so can potentially have devastating ramifications. Some studies have indicated that 85 percent of people believe they are in the top 10 percent of effective negotiators. Obviously, most people find it hard to accurately gauge their skills at negotiation. Do not open yourself up to liability by overestimating your ability to negotiate.

Integrative Negotiation

“Integrative negotiation is often referred to as 'win-win' and typically entails two or more issues to be negotiated. It often involves an agreement process that better integrates the aims and goals of all the involved negotiating parties through creative and collaborative problem solving. Relationship is usually more important, with more complex issues being negotiated than with Distributive Negotiation.”
-Negotiation.com

Integrative negotiation is much less adversarial, and more geared toward making sure that everyone walks away from the table at least somewhat satisfied. Whenever possible and practical, you should attempt to use this form of negotiation, as you never know what bridges will be burned and what will be lost when you rely on distributive negotiation.

While more effort goes into integrative negotiation than into adversarial negotiation, it is much less mentally and emotionally taxing since your objective is not to outsmart the other party, but brainstorm a solution that meets everyone’s needs as fully as possible.

Before your meeting:

Do your research. Find out as much as you can about the other party and his or her situation.

Put yourself in someone else’s shoes. Resist the urge to demonize the other party. Try to see the situation from his or her perspective. In so doing, you may begin to see that there is not a good guy and bad guy, or a right and wrong position.

Determine your ideal scenario. Explore your desires and goals. Ask yourself what you want and why you want it.

Put some thought into how you can best explain your position to the other party.

Determine what you are willing to give up – prioritize. Once you have set your goals, set your boundaries.

Determine where your absolute limits are: the absolute most you can pay, everything you can stand to live without, and the things you may definitely want but don’t really need. By the same token, identify what is a matter of values and what you absolutely can and will not compromise on.

The Meeting

Rid yourself of preconceived notions. Assumptions have no place in negotiations, and only serve to muddle everything and prevent everyone from achieving a good, solid understanding of the circumstances.

Set your sights high. Negotiation is all about a little bit of giving and a little bit of taking. Don’t state your bottom line right off the bat. From that point, it is virtually impossible to achieve an outcome that you can be happy with.

Practice good communication. Ask the right questions, and really listen to the answers. Read between the lines and, if necessary, keep asking questions until you are sure you have a clear and accurate picture of what the other party is looking for in the way of an agreement. If the other party seems willing to disclose information about his or her position and you trust that the information is honest, go ahead and meet in the middle by also practicing disclosure…selectively. There are times when both parties only seem to have a problem that cannot be solved, when in reality, the things they want do not exclude each other. There is a popular allegory contributed to the late social worker and author, Mary Parker Follett, that beautifully illustrates this point. Two sisters are fighting over one orange, which they both desperately want, and they both assert that they need the whole orange. At first glance, there does not appear to be any way to amicably resolve the issue. The sisters could resort to threats (attempting to tattle on the other), could ask their parents to arbitrate the dispute, or could trade the orange for something that the other also wants or needs. In the course of the negotiations, the sisters discover that one sister wants the orange to make orange juice, while the other sister needs the rind of the orange for a recipe that calls for orange zest. As you can see, in some situations, the issue is not what is originally seemed.

Learn to practice active listening in order to further minimize misunderstandings. However, if possible, avoid using the infamous phrase, “So what I hear you saying is…” and similar introductory phrases, and, instead, focus on speaking to them as you would speak to a family member or close personal friend in a situation in which you are trying to help solve a problem for them.

Don’t think of it as a winner/loser scenario. “Pride cometh before the fall.” Don’t get so caught up in winning that you deprive yourself of a mutually beneficial resolution to a problem. Ask yourself if winning is really all that important and what you stand to gain, as well as if it is worth the risk of losing.

Treat the negotiation as a brainstorming session. Approach the negotiation as a meeting in which two people with no hostility for each other are collaborating in the hopes of finding a solution that will simultaneously solve both of their problems.

He who speaks first loses. Make a proposition, then pause in silence as you wait for the other party to respond. Do not speak again until after he or she has given you something to respond to. Even if half an hour passes in silence—and it most likely is only a couple minutes and simply feels like an eternity—do not fill the silence with your voice. Do not fidget, clear your throat, or make any nervous body movements whatsoever. Remember those staring contests when you were a child? This is the same thing. Do not blink.

Be realistic. All your issues may not be resolved in one setting. Tackle separate issues in just such a manner – separately. Be willing to adjourn and meet again if either party becomes too emotionally involved or a stalemate seems imminent. And be open to the possibility that despite your best efforts, all attempts at amicably resolving the issue at hand may be to no avail, and you may have to play hardball after all.

1. Make a list of your business contacts. The list should include anyone with whom you have had business dealings in the past, as well as any professionals with whom you are even casually acquainted. Next, think of any people in your community who you know by reputation only who might be looking for an opportunity to network

3. Make a few phone calls. Call a few of your top contacts and let them know you are considering throwing a mixer to help your contacts meet some new people. Ask them if they have any suggestions for you and if there is anyone who they would like to meet. You might also want to ask if any of your top contacts would like the honor of co-sponsoring the event. In exchange for helping you with the cost of the event, you can offer them a 10-minute speaking opportunity on a relevant subject of their choice. If there is room, you might also consider giving them permission to set up a small table with some of their marketing materials at the event.

4. Choose a location and set a date. Choose somewhere that guests can mill around comfortably and not have to shout to be heard. An art gallery would be a perfect example of a place to hold a business mixer. Set a date. Send out attractive, quality invitations to everyone on your newly expanded list of contacts. Include RSVP cards, and send your invitations out a few weeks in advance. Midweek days such as Wednesday or Thursday are generally your best bet, and most mixers run from 6 p.m. until 8 p.m. Be sure to specify the standard of dress for the occasion, be it traditional business, business casual, or cocktail attire. For the typical business mixer, business casual is probably the standard of dress that you should request. If, however, you will be hosting your event at an upscale venue, serving finer fare, and serving some type of alcoholic beverages (or allowing guests to bring their own alcohol, such as bottles of wine), then you should consider requesting cocktail attire. Most people love the opportunity to get dressed up for an event, but you must make sure the occasion merits it. Approximately two weeks in advance, follow up by sending an Evite to everyone whose e-mail address you have. Evite, found at www.evite.com, is a wonderful resource for creating e-mail invitations and offers helpful party-planning tips. There are also numerous ways to use social networking sites to spread the word and remind people about your event. Be sure to encourage everyone to bring a friend, since this is the best way that you as the host or hostess will meet new people and forge new business relationships.

5. Follow up with VIPs. If there are any VIPs that you want to invite, follow up with a personal phone call a few days after mailing out their invitations.

6. Be up front about the cost of the event. Let everyone you invite know the cost per attendee (somewhere in the neighborhood of $20 is appropriate) and ask them to pay in advance or bring a check or exact change the night of the event.

7. Ask for contributions. You might also ask key players to bring a door prize valued at $50 or more. Let them know that they will receive an acknowledgment for their support of the event. Ask local businesses to donate small items such as pens, drink sleeves, or monogrammed golf balls at least a week before the event in order to make goody bags for your guests.

8. Plan food and drinks. Simple appetizers, bite-sized desserts, and other finger foods that can be served at room temperature are ideal for the occasion. You might see if a local restaurant, deli, or bakery would be willing to give you a discount rate for handling this portion of your event in exchange for getting some visibility in the community. Mention to them that many investors, Realtors, and business owners will be in attendance, as these individuals often look for a good deal on great food for open houses and office parties. As for beverages, bottled water, tea, coffee, and soft drinks should be considered the bare minimum. If you have the budget for it, offering beer, wine, cocktails, and mocktails will have a very positive effect on the success of your event. Before making those decisions though, consult with your attorney, as well as your local Alcoholic Beverage Commission, as there could be liability issues to take into consideration.

9. Don’t forget the prizes. If you have the budget for it, consider purchasing a prize to raffle off. Be sure to make it something that would appeal to your guests, such as a new PDA or a nice leather laptop carrying case.
10. Plan a short speech. If you would like, plan your own short speech on a relevant topic, making it slightly longer than the others given that evening. You want people to have the impression that you are the new expert in town, and that you are the person to do business with.

11. Last-minute follow ups. Make contact with everyone who RSVP'd on the day before or the day of the mixer to remind them of the event and again ask them to bring a guest.

12. Have everyone sign in. Have a sign-in table at the entrance to the event where the guests can all leave their contact information and specialty for inclusion in a master contact list that you will compile and mail out at a later date. Have blank name tags and black markers available at the table.

13. Mix and mingle. It is important to be social, but don’t try to insert yourself into every conversation and don’t try to steer the night in any particular direction. Let things naturally flow.

14. Be the last one to leave. Stay at the event until the last guest has left. Thank everyone for coming, and be sure that all the clean-up has been taken care of, whether by you or by someone to whom the task was designated. If alcohol has been served, call a cab for anyone who seems as if he or she may not be able to safely drive home. Not only is it the morally responsible thing to do, you could be liable if the guest became intoxicated at your event and had an accident after leaving.

15. Compile and send out the contact list. Include everyone who sponsored and/or attended the mixer. Be sure to include a personalized note thanking everyone for coming.
Remember to plan, plan, and plan some more. Don’t leave anything to chance. At the same time, do not allow yourself to become frazzled. There may be things that don’t go exactly as planned. If a problem pops up, don’t panic. Calmly address and resolve the issue to the best of your ability and keep your sense of humor. Enjoy yourself. Not only will this help your guests to relax and have a good time, but the people who are meeting you for the first time will get the impression that you are a professional who can get things done without even breaking a sweat. Everything may not be perfect the first time you throw a mixer, but the best way to learn is by doing. The day after your event, reflect on the experience. Think about what worked well for you, as well as what did not, and try to identify any ways you can improve for the next mixer or event that you host. If you keep at it, before long, hosting successful business events will be second nature to you.

Nothing will give a real estate investor more confidence than having a super buyer’s list. It helps to take away the number one fear that investors have—the fear of not being able to sell a property that they buy. This is especially worrisome for many investors in the current buyer’s market where it is more difficult to sell a property; however, with a good buyer’s list the property can easily sell.

This article will focus on building the investor component of your buyer’s list. The next article will discuss ways to generate the second type of buyer’s list—a list of people who are looking for their own personal home.

Building a Wholesale Buyer’s List

If you are planning to wholesale, you should spend time building a list of active buyers, usually other investors, who are looking for properties to buy. This is an ongoing process and an investor should always be searching for potential buyers. An ideal list for a wholesaler would have buyers for every type of property that one might find—contractors/rehabbers, landlords (for low-end, high-end, and average properties), multi-unit buyers, other wholesalers, cash buyers, new investors, and commercial buyers. An investor’s list usually starts fairly small, but grows over time into a list with hundreds of ready and willing buyers for numerous types of properties.

Here are a few suggestions to help you build a super buyer’s list:

• Search the newspaper for “Cash for Houses” or “We Buy Houses” ads. Many investors worry when they find numerous “I buy” type ads in their local newspaper. They think, “Boy there is a lot of competition for real estate deals in this area.” But if you are going to wholesale deals to others, the “I Buy” guys become your customers, not your competition. They are looking for property to fix up and sell or rent, and you may be able to supply them with that property, if you have negotiated a good deal.

Develop an information sheet that you can fill out each time you contact an “I Buy” guy. When you call, get to know them as best you can. At a minimum, get the following information:

1. Name and contact information (office phone, business cell phone, and e-mail address).
2. Find out what type of properties they are looking for.
3. Find out what areas of town they prefer to invest in and if there are any areas they don’t want to consider. Hint: If you are just getting started and are not that familiar with an area, this information can help you know in which areas you should look for property and the areas you should avoid.
4. Find out what price range they are interested in.
5. Find out how fast they can close on a property. If you have a property under contract that has a closing deadline in two weeks, you need to know who on your list can close in a relatively short period of time.
6. Find out how much profit they want in order to be interested in the deal. You will find that some investors will be satisfied with deals that produce $10,000, while others may not even look at a deal unless they have a potential profit of $25,000 or more.

As you generate your buyer’s list, categorize and group potential investors
based on the above data. That way you can save time and match the right properties with the right investors.

• Always be on the lookout for “I Buy Houses” bandit signs. Again, new investors may view the investors who use bandit signs as competition, but as a wholesaler, these people can become some of your best customers. Whenever you see a bandit sign, immediately write down the phone number. If you think, “I’ll get that number later,” you won’t remember where you saw the sign or the sign may be gone by the time you get back to that location.

• Search the Internet for “I Buy Houses” ads. Go to some of the popular advertising websites, such as craigslist.com and backpage.com, and look for “I Buy” type ads in your area. You can also try a search by typing in “I Buy Houses” along with your city and state. You will get more information than you really want, but start calling and add the names of interested investors or investment companies to your buyer’s list.

• Call on “For Sale” ads. Research your local newspaper for homes that are advertised for sale. Look for key words that might indicate that the home has been recently rehabbed. Words such as, newly remodeled, completely updated, or new interior can be indicators of rehabbed properties. Call on the ads and find out if they are investors. If they are, get their information and add them to your buyer’s list.

• Run your own ads in local classifieds. Experiment with the regular newspaper and the weekly free papers, such as the Penny Saver or Thrifty Nickel. Try running an ad that says, “Handyman Specials – Low Prices – Terms Available – XXX- 123-4567.” This should get your phone ringing. You are not advertising a particular property (unless you have a property under contract) and when people (usually investors) call, get their information and let them know you will be getting additional properties soon and will provide them with specific information. Get them on your buyer’s list.

• Run your own ads on several Internet classified advertising sites.

• Network at your local real estate investment club meetings. Most areas in the country have real estate investment clubs that meet on a regular basis. Plan to attend the monthly meetings for as many clubs as you can find. Gather cards from everyone you meet and follow up later in the week with a phone call to discuss what type of investing they do and add them to your list.

• Call on all the “For Rent” signs you see and ads listed in your local newspapers. Property owners who have properties they rent out may be looking for additional properties to buy, fix, and rent. If you have a property under contract at a high-enough discount that provides a positive cash flow, it should be easy to assign that contract to an existing rental property investor.

There are other techniques that can be used to build a wholesale buyer’s list. Be creative and your list will continue to grow.

So how many active buyers do you want on your list—50, 100, 200? You want as many as you can get! Don’t ever stop building your list. Investors with a super buyer’s list never have to worry about selling properties or assigning contracts. And if you have a super buyer’s list, you will find that other investors will come to you and ask for help in selling their properties. That can generate an additional income stream for you. A super buyer’s list is one of your most important assets.

In the first installment of his series, “Why This Crisis Doesn’t Make Sense to Normal People”, Robert Kiyosaki explains why your banker doesn’t want your savings – he wants your debt – and tells you why knowing this simple truth is essential to not only survive but also thrive.

"For people who believe in the old rules of going to school, getting a job, working hard, living below your means, saving money, buying a house, and investing in a government approved retirement plan, this brave new world of money can be very confusing. This is why the 8 New Rules of Money, detailed in Conspiracy of the Rich: The 8 New Rules of Money (COR), are essential for financial survival as well as financial success."

– Excerpt from Robert’s Conspiracy of the Rich bulletin

You don’t want to miss this!

Read Robert's latest post here: http://www.conspiracyoftherich.com/read/current/

This podcast is completely free because Robert and I want you to understand what is going on in the world today and how you can plan for your future and protect your money. Robert’s two guests are extremely knowledgeable, and Robert makes sure the concepts are explained so they are simple enough for all of us to understand. I hope you can join us.

I commend you for your commitment to furthering your financial IQ. Here’s to your financial success!

Kim Kiyosaki

Register Now: http://www.richdad.com/richdad/GvUSD-podcast/GvUSD-register.aspx

Are you prepared to prosper even as the world economy crumbles?

In his latest Conspiracy of the Rich bulletin, Robert Kiyosaki talks about the precarious state of the global economy–and how you can survive and thrive.

"The world is in a precarious situation. I’m afraid the rich countries of the world will soon be the poor countries of the world, and when that happens, the world will go bankrupt... In the near future, only the strong will survive and thrive due to less competition. Unfortunately, this will mean more suffering for the weak or naïve."

– Excerpt from Robert’s Conspiracy of the Rich bulletin

You don’t want to miss this! Read Robert's latest post here: http://www.conspiracyoftherich.com/read/current/

Why?

The crisis isn’t history. It’s shaping up to be the biggest crisis in history.

And the actions you take now will shape your financial future for years to come. Find out how to survive and thrive.


"If you want to believe the crisis is history, go ahead and drift off into dreamland. Personally, I’d rather face the facts, look at the real numbers, and prepare for the biggest financial crisis and wealth transfer in the history of the world.

– Excerpt from Robert’s Conspiracy of the Rich bulletin

You don’t want to miss this!

Read Robert's latest post here: http://www.conspiracyoftherich.com/read/current/

Probably the single-most asked question by new real estate investors is, “How do I start investing when I don’t have money or good credit?” There are many answers to that question and we will address different methods for investing in real estate with little or no money in this series of articles.

What every new investor needs to realize is that you don’t need excellent credit and a surplus of cash to get started in real estate investing. In addition, you don’t need to own a property to profit from it; you only need to control it to harness its money-producing potential.

There are many ways for financially challenged investors to make money and generate real estate cash flow. In the first article in this series, the wholesale model was discussed. With wholesaling, you do not buy and sell properties; you obtain and sell contracts. Because you are not actually buying the property, you don’t need good credit and money for a down payment. The only money you might need is for the earnest money to bind the offer. You make your money by selling and assigning the contract to another investor. This is a great way to get started in real estate for investors who have little or no money to start their investing business.

In the second article in this series, an often-overlooked method for financing real estate projects, government and private grants, was discussed. The federal and state governments, along with private groups and corporations, have made billions of dollars available for grants and low-interest loans for funding real estate projects. You just need to know how to tap into these resources and be willing to follow the rules.

In this month’s article, several ways to buy properties using nothing-down techniques will be discussed. Does this mean that there is no money required for a down payment on the property? Although that may be the case on a few deals, it just means that the money used for the down payment isn’t your money. That scenario fits well if you have little or no money to invest.

You may have heard the saying, “When the student is ready, the teacher will appear.” It can also be said that, “If the deal is good, the money will appear.” To put it another way: if you have negotiated a great deal and you let people know that you are willing to share the profits from that deal, then you will be able to find the money to fund the deal. If the deal is right, the funding can easily fall into place.

There are numerous ways to buy property without using any of your own money. Here are a few of the more popular techniques for buying a property with nothing down:

1. Borrow the money. One of the easiest ways to purchase a property with no-money down (no money out of your own pocket), is to simply borrow the down payment. Here are a few places you may be able to borrow money from:

• Business partner
• Friends
• Family
• Home equity line of credit
• Credit cards
• Cash value life insurance policy
• Real estate agent (i.e., suggest they loan you their commission for a short while)
• Personal or signature loan
• If you are purchasing your own personal home, you may qualify for a down-payment assistance program
• Other investors
• Hard-money lender (if there is enough profit in the deal to support the higher cost of a hard-money loan)
• Car title loan (note: use a credit union, not a payday loan)
• Zero-down loan from a lender
• VA nothing-down loan (if you are a veteran and qualify)

2. Provide the seller something they need in lieu of a cash down payment. Ask the seller what they need the cash down payment for. At this point, you should have built some rapport with the seller and, if you tactfully ask the seller their plans for the cash proceeds from the sale, they will most likely tell you. People may take cars, motor homes, motorcycles, boats, campers, all-terrain vehicles, trailers, guns, furniture, or antiques in lieu of a down payment. It never hurts to ask.

3. Take over the seller’s debt. Sometimes a seller needs the down payment money from a property sale to pay off other debts. For example, say an investor has found a motivated seller who is willing to sell an existing rental property for $150,000. The seller is willing to carry the financing, but insists on 15 percent ($22,500) down payment. He will carry the balance, $127,500 on a six-percent note, amortized over 30 years, with a seven-year balloon. Not a bad deal, assuming the rental analysis formula has shown that there will be a positive cash flow based on the current rents. But you, the investor, don’t have $22,500 for the down payment. In talking with the seller you find out that the $22,500 is needed to pay off some past-due medical bills. Rather than coming up with the $22,500 in cash, you could negotiate to take over responsibility for the seller’s past-due medical bills. Problem solved. If you negotiated a good deal on the property, the positive cash flow might even cover the monthly medical-bill payments. However, the smart investor could then take it a step farther: go to the doctors and hospitals owed the money and offer to pay cash now if they will discount the bill. You might be surprised to see discounts up to 50 percent, especially if the bills have been past due for awhile. You would then have to come up with $11,000 or $12,000 cash to payoff the debts, but that leaves you with an extra $11,000 or $12,000 equity in the property. It all starts with asking the seller what he really needs the money for.

4. Trade your skills. Find out if the seller needs any services in their trade or business. The father of a good friend of mine was a lawyer. He once did some extensive legal work for a gentleman who owned some land up one of our local canyons. He traded his legal services for the land. My friend’s family eventually built a cabin on a small part of the property and then subdivided the property and sold cabin lots. Over the years, the land produced more than 20 times the profits, compared to the original legal fees. Mechanics, plumbers, contractors, accountants, doctors, dentists, lawyers, hair dressers, and store owners all could trade their services to a seller in lieu of a down payment. Again, find out what the seller needs and try to supply those needs. But what if you don’t have the skill that a particular seller needs? Find someone who does have that skill and see if that person may need your services. You might end up with a three- or four-way trade in order to meet everyone’s needs, but it can be done if you are a little creative.

5. Offer a higher price. A lot of sellers seem to place the most importance on price. Say you had a rental property under contract for $160,000. The seller is willing to take 10 percent down and carry the rest on a contract. The numbers show it’s a great deal (based in the existing rents), but you don’t have the required $16,000 down (or don’t want to put the $16,000 cash into the deal). You might offer the seller $170,000 if he will carry the whole contract and forgo the down payment. The seller very well may take the deal. Your payment (on a six-percent, 30-year amortized note) would only increase by about $60 per month. The benefit to you is that you don’t have to come up with the $16,000 cash and you get into the property with nothing down. If you borrowed the $16,000 from a credit union at six percent on a 60-month note, your payments would be 309.32 per month for principal and interest. I’ll take the $60/month payment over the $309 per month payment. The benefit to the seller? The seller gets $10,000 more for his property (over the length of the loan). Seems like a fair trade.

6. Negotiate the terms of the down payment. In real estate, everything is negotiable. If you don’t have the down payment in cash, perhaps you can negotiate to pay the down payment in installments. For example, say a seller wanted a minimum of $5,000 down on a property. You might be able to get the seller to take $500 per month for the next 10 months. It never hurts to ask. Or maybe you could negotiate $250 per month for the next 12 months with a balloon payment of $2,000 due at the end of 12 months. Be creative.

7. Take on a partner. You could always take on a partner who would put up the required down payment. He/she would then share in the sale proceeds of the property or in the monthly proceeds from a rental property. Start developing a list of potential money partners and find out what terms they would require in order to invest with you. Again, all terms are negotiable. Just like dealing with sellers, deals with partners need to be win-win.

8. Lease with an option to buy. You don’t need to own a property in order to make money; you only need to control a property. So, if you have no money, no partners, you can’t borrow the money, and have no skills to trade, you could try to negotiate a lease with an option to buy. As long as the rate is lower than the rate at which you can sublease the property for, you can generate a nice monthly cash flow. Also, you can usually negotiate an option fee with the seller that is less than the fee you charge the person you bring in as a rent-to-own client. Thus, you can get some up-front cash out of the deal, as well as the monthly cash flow.

These are just a few of the ways you can purchase (or control) properties without taking money out of your pocket to put into the deal. Future articles will discuss additional techniques that will help you buy properties if you don’t have money or credit. Don’t let the lack of money stop you from investing. Find motivated sellers, get to know them, and find out what their needs really are. Then be as creative as you can to fill those needs.

And those employees aren’t too happy about the proposed cuts. They’re taking it to the streets. In his latest Conspiracy of the Rich bulletin, Robert Kiyosaki breaks down what the Greek financial crisis means for you and your money.

"When the government of Greece proposed cutting wages and pensions for government workers, they hit the streets in protest…could this be America next year? What will happen when Americans finally realize that there’s no money in the Social Security Trust Fund and that Social Security is just one big Ponzi scheme?"

– Excerpt from Robert’s Conspiracy of the Rich bulletin

You can’t afford to miss this!

Read Robert's latest post here: http://www.conspiracyoftherich.com/read/current/

Learn more here: http://www.richdadeducation.com/annual_forum.aspx

– Excerpt from Robert’s Conspiracy of the Rich bulletin

Don’t miss this crucial discussion on gold and how it could affect your money.

Read Robert's Latest Post: www.conspiracyoftherich.com/read/current/

Now, in his latest book, The Corruption of Capitalism, Duncan takes a hard look at the relationship between China and the US. In his latest Conspiracy of the Rich bulletin, Robert gives you exclusive quotes from Duncan’s new book and explains what the fall of China will mean for you and your money.

"So is the crisis over? I don’t think so. We are, as Richard Duncan states, in the New Depression. This is why The 8 New Rules of Money are important. The rules of money have changed, and we need to change with them – or we’re toast."

– Excerpt from Robert’s Conspiracy of the Rich bulletin

Read Robert's LAtest Post Here: http://www.conspiracyoftherich.com/read/current/

“For people who are prepared, 2010 will be the best of times. For many, 2010 will be the worst of times.”

The following are a few of my predictions and reasons behind them…

Read Robert's Predictions: http://finance.yahoo.com/expert/article/richricher/211091;_ylt=ArRVi183yfObewv_zsNUgLczt9IF;_ylu=X3oDMTFkNXI3Z2tnBHBvcwM0BHNlYwNibG9nQmxvZ2dlckFyY2hpdmUEc2xrAzIwMTB0aGViZXN0bw--

"For over fifteen years, Kim and I have hiked the mountains near our home to set our goals for the New Year surrounded by Arizona’s natural beauty. This New Year was no different. We hiked for an hour, climbing the same hill we always climb, and spent some time discussing the past year, our wins, our losses, and what we were grateful for. Then we focused on our goals for 2010."

– Excerpt from Robert’s Conspiracy of the Rich bulletin

Read Robert's Latest Post Here: www.conspiracyoftherich.com/read/current/