Tuesday, 23 August 2016

Hunter Estess - Make the Invested Time Principle Work in Your Favor

Hunter Estess of New Orleans is a major player in the real estate market in the Gulf South region. He knows how to negotiate successful real estate deals.

The invested time principle states that the more time a person spends on a negotiation, the less likely he or she will get out of the negotiation without making a deal.
Hunter Estess

When you are looking to buy a real estate property and make an offer, the sellers immediately start spending the money in their heads. The longer the negotiation lasts, the harder it is for them to back out of the deal, because they see the money as if it were already theirs.

When you are selling a property, the buyers usually start envisioning what they will do with the property as if it is theirs before they buy it.
You can use this principle to your advantage by making the other party spend a significant amount of time on the deal. Get the buyer or seller to review or submit financial statements. Ask them to make projections of cash flow, expenses, and profits. Get engineers to take a look at the property. Do a title search.  Discuss the concerns with the other side. Send requests for more information.

Most people hate the idea of wasting time. After they spend enough time on something, they really want to make it work.

This being said, you shouldn’t forget that spending a significant amount of time on a deal will most likely have an impact on your decisions as well. Try to keep your work to the minimum and have the other party spend as much time, money, and other resources as possible. That is what smart real estate investors like Hunter Estess do when it is appropriate and beneficial for the negotiation.

Friday, 12 August 2016

Hunter Estess - Think through Your Behavior During a Negotiation

Hunter Estess of New Orleans has been investing in real estate properties for many years.

The principle of least effort says that people will spend the least amount of effort required to get through a process. This principle also works with real estate transactions. Most people have no idea how to prepare for a real estate negotiation, and even when they do, they are often too lazy to do it. This is always a big mistake that can cost thousands of dollars. If you can anticipate the questions that you will be asked, you should think about what answers you will give. 

                                          Hunter Estess

In the beginning of a negotiation, you can tailor almost anything you say, and the way you say it, for a favorable effect. For example, giving a quick, decisive, and detailed answer to a sensitive question will show the other party that you are confident and prepared. 

However, in some cases you want your answers to look as if you just spontaneously thought of them. In such instances you can say that you just thought of something that may work or throw an idea as if it just came to you in the moment. 

Such behavior can create an atmosphere of comfort and a sense of trust in the other party because it will look as if you are quickly thinking on your feet to come up with a solution that will satisfy all parties involved in the negotiation. This is what seasoned entrepreneurs like Hunter Estess do to increase their chances of success.

Friday, 5 August 2016

Hunter Estess - Land Banking Explained

Hunter Estess of New Orleans has a proven record of accomplishment in the real estate industry.

Before getting on any deal, every serious investor in real estate should ask and answer a number of questions not only about the property, but also about the surrounding area. Do rent prices in the area keep up with inflation? Is the area stable, changing for the better, or deteriorating?

One of the best places to look for great real estate deals is the areas that are not very successful themselves, but are located close to very successful properties and areas. 

Hunter Estess

 The strategy of investing in land or properties with the assumption that they will significantly go up in value in the future is called land banking. Land banking is a smart approach in many cases, especially with areas that have strategic locations. It can bring exponential returns if the investment is made in the right project.

However, before the property goes up in value, you will still need to pay taxes and other charges on it. If the property brings in no income, taxes and charges need to be added to the investment amount. This is why it makes sense to keep using the property as currently intended while you wait for opportunities to arise.

For example, in New York City land banking may include an investment in an existing parking lot. The goal may be to build something on the property, but in the short term it may make sense to continue using the property as a parking lot to have incoming revenue. That is what many experienced real estate investors like Hunter Estess do with their projects.