Episode 493

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:

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 Wealth conference hosted on a cruise ship
- Focus on content sharing and networking, no speaker pitches
- Encouraging children to attend and build networks

9. Inviting listeners to attend the conference in Cancun and expand their network
- Importance of building genuine relationships with clients
- Example of receiving Christmas cards from past clients

10. Speaker's involvement in short term regional lending in Wisconsin
- Background in flipping houses and raising private capital
- Offering investors a 9% return and lending at 12% with six month terms

11. Being 100% privately funded and not selling loans to hedge funds
- Prioritizing customer service and striving to be the best REI funding
- Difficulties experienced during the 2007 downturn and the impact of government regulation

12. Alternative methods of buying properties without banks or a lot of personal cash
- Strategies such as lease options and master leases to control properties
- Finding cash flowing properties in the upper Midwest region, particularly in Wisconsin

13. Ethical and moral practices that benefit both buyers and sellers
- Explanation of buying properties "subject to" existing financing
- Triggering due on sale clause and potential risks involved

14. Risks involved in buying properties "subject to" and the importance of being able to pay off the loan if it gets called due
- 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"



"You can invest 10,000 hours and become an expert or learn from those who have already made that investment." - Jack

About the Podcast

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Real Estate Investing with the REI Mastermind Network

About your host

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Jack Hoss

We gather amazing stories from leaders in Real Estate Investing. In each episode, our guests will tell you what they are doing that works, what they tried that failed, and best of all you'll learn actionable steps to take your real estate investing to the next level.