Continued from page 1
Once again, only you can judge how
negotiations are going. Most people want to ‘do a deal’ quickly and do not have patience for a long term, several hours, negotiation.
By adding a more and more enticing offer you are making yourself more desirable as a tenant ... you will start to surround yourself with a "Golden Glow" of desirability.
When final deal is done on rent and before you sign any Lease, you can now raise any property questions you have; i.e. carpet shampoo, condition, painting, plumbing, door locks, blinds etc etc.
Take photographs on a dated film of every aspect of property (2 copies) one for agent, one for you. You sign back of photos you give agent and they sign back of copies you keep and it is noted in lease.
When all these actions are taken, you will have accommodation, that you want, that is better than original $xxx per week would get and you are secured for 3 years.
Finally, from these negotiation processes, both owner and agent will hold you in high regard, because most people admire a good negotiator.
Happy renting
Note: There is a financial mathematical formula called Discounted Cash Flow (DCF) which can be described as a means of calculating ‘Present Day Value’ of ‘Future Cash Flows.’
So what does that mean?
Let’s say that you have got $250 per week rent down to $230.00 before you start offering to pay rent in advance.OK?
In making decision to pay in advance, you are giving owner an amount of cash that they can use to make other buying investment decisions.
What this means is that money you give them can earn them an amount of money, and we’ll call that ‘interest’ – just like bank. This is just one concept I want you to lock away.
That concept has been given to you so that you can see, or understand, my next concept of DCF.
Imagine writing across a page a whole string of $230, $230, $230 etc for every week you would normally have to pay that rent; 52 times or 104 times.
Now imagine discounting 52nd $230 by an interest rate of whatever; say 5% for 52 weeks. Then next $230 is discounted by 5% for 51 weeks and so on until you get back to zero weeks. Having done all these calculations and then add them up you arrive at a $value of all those Cash Flowed $230’s for 52 weeks or for any other period.
I have not done calculation for you because individual circumstances vary so much. However it is this discounted amount of money that you offer to property owner.
Now going back to my first concept, you can see how owner can invest money. If they were to earn say 5% they would almost get back to figure we started with i.e. 52 x $230.00 except of course investment would also have gained in capital value.
I hope this brief explanation helps you understand why you should expect a discount for Pre-Payment of rent or any other purchase you make where payment over time is deal.
Last Point: If you were to leave your pre-paid rent in your bank account you would pay Tax on interest you earned.
The Discount you get off your rent is Not Taxed and so is much more valuable to you and in effect you are getting a better return on your money invested in RENT.
This Article Shows You How To "SAVE MONEY & GET WEALTHY" by Renting & Using You CAPITAL.
Colm Dillon Author, "Residential Development Made Easy" is a best selling ebook in 63 Countries World Wide, through his web site: http://realestatedevelopmentcoach.com/realestatedevelopment.html having developed $1.2 Billion worth of projects himself.
