Master Negotiation w/ Derek Dombeck
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Episode Description
Welcome to the Freedom Point Real Estate podcast! Derek Dombeck joins Jeremy Dyer in today's episode to share his expert strategies for creative deal structuring, tactical negotiations, and vision-aligned business.
As a seasoned investor, national speaker, and international best-selling author, Derek has navigated the real estate market’s highs and lows since 2003, completing thousands of transactions along the way. But what truly drives him is empowering others—especially when they feel stuck or out of options. Derek has a natural gift for negotiation and creative problem-solving, and he thrives on helping people find clarity and confidence in their path forward.
CONNECT WITH DEREK DOMBACK!
Website: https://derekdombeck.com/
LinkedIn: https://www.linkedin.com/in/derek-dombeck-0246b323
Youtube: https://www.youtube.com/channel/UCU-C0RuieBi0BAtDHQdnuZQ
Facebook: https://www.facebook.com/derek.dombeck/
CONNECT WITH JEREMY DYER!
Website: https://startingpointcapital.com/
Instagram: https://www.instagram.com/startingpointcapital/
LinkedIn: https://www.linkedin.com/in/jeremydyer
Facebook: https://www.facebook.com/startingpointcapital
Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12
Summary
Tip #1: Start with the Seller’s Problem, Not Your Offer
“You have to know what that person’s problem is in order to solve it.”
Derek emphasizes that successful negotiations start with identifying the seller’s core problem, not leading with a pitch. Instead of focusing on a pre-set buy box or standard offer, investors should approach every conversation with curiosity and problem-solving intent. This mindset opens the door for creative deal structures that benefit both sides. Listening and asking the right questions are key to uncovering the real pain points.
Tip #2: Adapt Your Negotiation Style to the Seller’s Personality
“Figure out as quickly as you can what you think their personality type is and then adjust how you talk to them.”
Derek breaks down the importance of personality-based communication—whether the seller is analytical, socially conscious, or a direct driver. Tailoring your approach increases trust and receptivity. For example, drivers prefer blunt talk, while analytical types value facts and figures. Adapting early in the conversation can make or break the negotiation.
Tip #3: Present Multiple Solutions in Your Pitch
“We buy properties in several different ways… sometimes we take over debt payments, sometimes we make payments over time, or we lease and buy later.”
Offering only an all-cash deal limits your ability to win opportunities. Derek advises presenting a menu of options so sellers feel empowered to choose the best fit. This approach is especially effective with landlords looking to offset capital gains or homeowners seeking flexibility. Flexibility increases your close rate and builds credibility.
Tip #4: Keep Emotion Out of Investment Decisions
“After you lose money on deals, you’re way less emotional.”
Emotional attachment to a property often leads to poor decisions and thin profit margins. Derek stresses the importance of evaluating deals based on logic, data, and market demand rather than personal feelings about a property. Investors should always begin with the end in mind—considering buyer pool, layout appeal, and renovation costs before committing.
Tip #5: Understand Market Cycles and Anticipate Shifts
“When you’ve been through different market cycles, it’s kind of like knowing the end of the movie.”
Experience in multiple market downturns taught Derek that opportunities arise when others panic. While many investors follow trends, Derek positions himself for creative deals during market slowdowns. Tracking indicators like days on market and seasonal patterns (such as Midwest winters) helps investors predict seller motivation and craft timely offers.
Tip #6: Embrace Creative Deal Structuring
“We bought a $260,000 house… payment is $800 a month, principal only, zero interest.”
Creative financing strategies like seller financing or subject-to deals allow investors to bypass traditional banks and high-interest rates. Derek’s example of securing a zero-interest deal highlights the power of negotiation and patience. These terms enable strong cash flow and risk mitigation, making creative financing a cornerstone for resilient portfolios.
Tip #7: Focus on Cash Flow, Not Speculation
“Do not buy something based on the hopes that it’s going to appreciate. If it appreciates, that should be the gravy.”
Legacy isn’t just financial; it’s also about time, influence, and values. Lisa demonstrates that impact can come through education, mentorship, and storytelling—not just writing checks. This perspective helps individuals find fulfillment beyond material wealth.
Tip #8: Build a Business Around Your Personal Vision
“Figure out how to construct a business that supports your personal vision… not the other way around.”
Many entrepreneurs sacrifice personal freedom by creating businesses that consume their lives. Derek advocates writing out your ideal life vision without constraints, then designing a business model that fits within it. This intentional approach prevents burnout and ensures your business serves your life, not the reverse.
Tip #9: Lead with Impact, Not Just Profit
“The best deal I ever did wasn’t necessarily monetary… it helped the people.”
Derek shares a story where he structured a deal to keep a family in their home for three extra years while still achieving a profitable outcome. Prioritizing ethical, win-win solutions builds long-term reputation and relationships. Impact-driven investing creates opportunities for both financial and personal fulfillment.
Tip #10: Find Mentors and Keep Learning
“If you’re newer, go find somebody that’s got experience and start that relationship.”
Real estate markets are cyclical, and the learning curve is steep. Building relationships with seasoned investors provides guidance, avoids costly mistakes, and opens doors to creative strategies. Networking and mentorship remain essential tools for scaling intelligently and staying adaptable in changing environments.
