1. Never enter a negotiation that you’re not prepared to walk away from. Accept the fact that you may not reach agreement and may have to walk away from the deal.
2. Never fall in love with the item your negotiating for. You lose your leverage if you do and your love will make #1 above almost impossible.
3. Never be the first to name a price.
4. If you’re providing a service, always negotiate your price up front. Remember the “call girl principle.”  The “call girl principle” states that the perceived value of a service declines precipitously after that service has been performed.

Your risk tolerance level may demand a different strategy, but in general, I try to stick to the following guidelines when it comes to investing in real estate.  This means avoiding investments that fall into the red boxes/categories.

As featured on eHow.com.

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