7 Tips for Closing the Deal in Real Estate Investing Negotiations

Tips for closing the deal when you think you've tried everything.

"ABC: Always Be Closing." That's the sales strategy that actor Alec Baldwin's character Blake shared in the 1992 film Glengarry Glen Ross as he tried to motivate a group of real estate salesmen. In his verbally abusive, profanity-laced speech, Blake presented a ruthless model of closing the deal that ignores customers' needs and cuts ethical corners.

While that approach isn't one to follow, closing real estate investment deals remains a genuine challenge. Common roadblocks include negotiations that drag on endlessly, parties hesitant to make their best offers, and competitive markets making sellers reluctant to commit.

Here are seven practical strategies to help you overcome these obstacles and successfully close real estate investment deals:

1. Establish a Clear Process

Before diving into property details or price discussions, take time to negotiate how your talks will proceed. Determine ground rules, who will facilitate meetings, and which issues you'll address when. Mapping out this process helps avoid misunderstandings and creates more efficient negotiations.

2. Set Realistic Deadlines

When structuring your negotiation process, establish short-term benchmarks and an ambitious but achievable final deadline. Discuss what happens if you miss these targets. Remember that deadlines pressure both parties equally, often spurring creative solutions and necessary concessions.

3. Request Exclusivity

If you're concerned about competing investors, consider requesting a limited exclusive negotiation period (like one week) where the seller agrees not to entertain other offers. To secure this arrangement, emphasize the unique non-monetary advantages you bring—perhaps your renovation expertise, existing portfolio, or quick closing capabilities.

4. Take Strategic Breaks

Sometimes stepping away from negotiations temporarily can accelerate closing. A break gives everyone space to decompress from the tension while allowing you to review progress with your team. This perspective can help determine whether continuing toward a deal makes sense.

5. Bring in a Neutral Third Party

When parties are reluctant to show their best offers, consider involving a trusted, neutral mediator. Both sides can privately share their bottom lines with this person, who can then determine if there's potential for agreement. This approach quickly identifies viable deals or helps you recognize when it's time to move on.

6. Refresh Your Negotiation Team

If discussions have stalled, consider bringing in new representatives. Fresh perspectives, free from emotional baggage or personality conflicts, can often break through impasses that derailed previous negotiations.

7. Use Contingent Contracts

When closing real estate deals, contingent contracts can resolve disagreements about future outcomes. For example, if you're uncertain about a property's rental potential, structure a deal where the final price adjusts based on achieved rental income during the first six months. This approach allows parties to "agree to disagree" while still moving forward.

Remember, successfully closing a real estate investment deal requires strategy—and sometimes knowing when to walk away. These guidelines will help you identify when a property is worth pursuing and when your investment dollars are better directed elsewhere.