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

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.

Connect with Derek Dombeck at https://bestreifunding.com/
Get Derek Dombeck's free ebook by sending and email to derek@bestfunding.com

Topics Covered:

- Negative consequences of this practice

- Myth of taking out lines of credit for house flipping or property purchases

- Adjusting communication style based on personality type

- Using elevator pitch to set expectations and overcome objections

- Asking questions, listening attentively, and avoiding cutting people off

- Creative deal structuring and negotiating skills

- Background as a construction worker and involvement in flipping houses and rental properties

- Co-ownership of successful lending company

- Offering electronic versions of both books to listeners who email the speaker

- Using tactics such as recording phone calls, paying attention to tone and body language, and building rapport

- Caution against manipulative use of these techniques

- Preemptively overcoming objections and guiding towards the proposed solution

- Specific examples of dealing with difficult situations and creating successful deals

- Focus on content sharing and networking, no speaker pitches

- Encouraging children to attend and build networks

- Importance of building genuine relationships with clients

- Example of receiving Christmas cards from past clients

- Background in flipping houses and raising private capital

- Offering investors a 9% return and lending at 12% with six month terms

- Prioritizing customer service and striving to be the best REI funding

- Difficulties experienced during the 2007 downturn and the impact of government regulation

- Strategies such as lease options and master leases to control properties

- Finding cash flowing properties in the upper Midwest region, particularly in Wisconsin

- Explanation of buying properties "subject to" existing financing

- Triggering due on sale clause and potential risks involved

- Purchasing properties "subject to" in a trust to mitigate risks

- Examples of homeowners suffering during the last market crash due to properties purchased "subject to"