Donald Trump is considered as one of the best known Real Estate Entrepreneurs in the United States. I've actually managed to pick up tips for success in business and life in general by reading about him in his book "TRUMP STRATEGIES FOR REAL ESTATE".
- You can’t make big real estate investments—or really profitable small investments—without projecting certain personal qualities that inspire confidence in others, and make them want to help you or to see things your way. The key personal qualities you need are enthusiasm, relationship-building skills, showmanship, preparation, and tenacity
- Enthusiasm (and focusing initially on the large outlines of a deal rather than the financial details) can overcome many obstacles
- Trump knows that people like to be excited. You just have to find creative ways to excite them
- One way to build a good relationship is to assume that the present transaction you’re working on is only the beginning of negotiating many deals with your counterparts
- If you’re going into a meeting with someone, learn as much about them beforehand as you can. Ask someone else about them, find out what they know
- An even better example of Trump’s showmanship is the way he used flashy architecture to get people excited about the Commodore-Hyatt deal. Using eye-catching, conversation-starting architecture is one of Trump’s signature tactics, and it’s something every real estate investor, no matter how small, should consider doing
- Whatever the situation, whether you are buying or selling, try to anticipate any likely potential problem
- Trump always does more preparation than other people are willing to because it gives him greater control in a fluid situation
- Take advantage of the fact that most people are not willing to spend time on preparation
- Trump always does more preparation than other people are willing to because it gives him greater control in a fluid situation
- Take advantage of the fact that most people are not willing to spend time on preparation
- Everything worth doing is difficult, and in order to accomplish it, you have to be tenacious
- One of the cornerstones of Trump’s philosophy is “Improve any Location”
- To be attractive to Trump or to any intelligent investor there has to be undiscovered potential for adding significant value to the property—value that is not already factored into the selling price of the building
- Though you may be a small investor, if you want to be extremely successful make sure that you too have a vision for adding significant value to any property you buy. Think about your vision for adding undiscovered value before you get serious about putting any money down for the property. You have to think creatively about the ways to get the highest and best use out of a property
- The bottom line is, whenever you are considering buying an investment property; explore ways to “Improve the Location”
- “Will this investment keep up with changing times? Will rents keep up with inflation? Is the area stable, getting better, or deteriorating?”
- Unfortunately, lawyers are too often trained to kill deals when problems arise, rather than translating legal problems and risks into financial terms, so that a business decision can be made. Many times real estate deals run into problems that can only be solved with creative, “out-of-the-box” thinking
- Once Trump intends to purchase a property, he has his associates prepare a projected business plan containing the following items:
- Anticipated costs of various items
- Nature and cost of available financing
- Estimates of income
- A projected timeline indicating when expenses will be incurred and when income will be received
- Creating a preliminary business plan is an important discipline for you to adopt because it forces you to think through the most important elements of owning a particular piece of property. It also forces you to think of your future plans for the property, and the timing of an eventual sale
- “Does the purchase achieve the intended goal as part of your investment portfolio” Ask yourself, “Am I looking to make a capital gain? Will it be short term or long term? Am I looking to buy and hold this property as part of my estate? Am I looking for a transaction that has great tax benefits, at the expense of other monetary benefits?”
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