Time kills all deals, right? Yes, but to make deals happen, you must avoid time’s accomplice, the do loop. We enter do loop unaware and full of good intentions, but what we have is an endless commercial real estate negotiation process or circle of discussions that accomplishes nothing except to make us feel as though we’re accomplishing something.
For instance, an interested party comes to your building and makes you an offer. You review the offer and it’s full of contingencies, has unacceptable pricing, terms, and conditions, but after thinking about it, you’re intrigued and want more. You tell the interested party to rework the offer and come back with more information about what they’d like to do, perhaps a higher price, maybe better terms.
A few days pass, and your interested party submits a partial list of responses for you, verbally. You review the changes, ask for more information, maybe give them a “that could work” to a term and send them on their way. A few more days pass, and they come back. You repeat. They repeat. You repeat again. A month has gone by. Maybe two.
Then you’re out to dinner with a friend, and he asks you how it’s going with your property. You tell him that it’s going well because you have an interested party you’ve been talking to. Your friend asks you, “did you do the deal?”
You don’t know. You don’t have a deal. You’re in the do loop–an endless commercial real estate negotiation process.
When you’re in the do loop, you go ’round and ’round, because neither you, or the interested party has succeeded in isolating the variables in your negotiation. This situation will continue until either you decide this negotiation is a waste of time, or you break the do loop. Unfortunately, do loop discussions usually end in someone dropping out because there’s no end in sight.
To break the do loop, end the endless talk by establishing constants in your negotiations. Take a position, make a commitment, and move forward. Ask your interested party to do the same. You’ll find that you start making headway and will be in a position to make an informed decision about the sale or lease of your property.
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