The Art of Negotiation: Understanding Personality Types and Effective Communication with Derek Dombeck

Real Estate Investing with the REI Mastermind Network

Jul 20 2023 • 30 mins

On this episode of REI Mastermind Network, host Jack Hoss welcomes guest Derek Dombeck to discuss the pitfalls of using personal homes as leverage in real estate investments. Derek shares his own firsthand experience with negative consequences and dispels the myth of using lines of credit for house flipping or property purchases. He emphasizes the importance of understanding the personality type of the person he's negotiating with, adjusting his communication style accordingly. Derek provides valuable tips on using an elevator pitch, solving the other person's problem, and employing effective negotiation strategies. He also shares insights from his upcoming book on the lending business, co-authored with notable individuals and published by Kyle Wilson. Derek discusses the Generations of Wealth conference, which he and his friends took over and renamed, highlighting its focus on content sharing and networking. He invites listeners to attend the conference in Cancun and expand their network. Derek stresses the significance of building genuine relationships with clients, citing real-life examples of successful deals that required compassionate conversations. He delves into his involvement in short-term regional lending, offering investors a 9% return and prioritizing customer service. Derek also discusses the potential challenges and opportunities in the current market, sharing alternative methods of buying properties without relying on banks. He explains the "subject to" strategy and the risks involved, cautioning about triggering the due on sale clause in most mortgages. Overall, this episode provides invaluable insights and practical advice for navigating the real estate industry and achieving success.

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Topics Covered:

1. Frustration with using personal homes as leverage for real estate investments
- Negative consequences of this practice
- Myth of taking out lines of credit for house flipping or property purchases

2. Importance of understanding the personality type of the person being talked to in property deals
- Adjusting communication style based on personality type
- Using elevator pitch to set expectations and overcome objections

3. Negotiation strategies and the importance of helping others solve their problems
- Asking questions, listening attentively, and avoiding cutting people off
- Creative deal structuring and negotiating skills

4. The speaker's book about the lending business and potential titles
- Background as a construction worker and involvement in flipping houses and rental properties
- Co-ownership of successful lending company

5. Co-authoring a second book with other notable individuals and its publisher
- Offering electronic versions of both books to listeners who email the speaker

6. Importance of learning negotiation strategies and focusing on building relationships
- Using tactics such as recording phone calls, paying attention to tone and body language, and building rapport
- Caution against manipulative use of these techniques

7. Addressing potential negatives and objections in real estate conversations
- Preemptively overcoming objections and guiding towards the proposed solution
- Specific examples of dealing with difficult situations and creating successful deals

8. Generations of...