How Trump Chooses Property to Invest In (part 2)

Chapter 2: Think Big
Trump Strategies for Real Estate Investing: Billionaire Lessons for the Small Investor
By George Ross

I looked at a piece of investment property a block from a very prominent lake. It was a very poorly managed, seven-unit building. A couple of the units were ok, but several were in disrepair; including a unit with cigarette butts on the floor and busted out window (in winter and the owner pays utilities).

The parking took up about 1/3 of the lot, the building took up a little of 1/3 of the lot, and the remainder was green-space. The units are pretty roomy. If I remember correctly, the price did not allow for cash flow without a substantial down payment. How could this building’s potential be maximized? How could it be negotiated?

Next time: My ideas for this building’s potential and the rest of How Trump Chooses Properties to Invest In

How Trump Chooses Properties to Invest In

Chapter 2: Think Big
Trump Strategies for Real Estate Investing: Billionaire Lessons for the Small Investor
By George Ross

George covered a lot of useful ground that can be used by the small real estate investor to select a successful real estate project. Real estate investors are told that three words matter in real estate – location, location, you got it – location. George tells us that a great location is just the start for a successful real estate project.

Pay for location. Donald Trump loves selecting excellent locations that are convenient and have awesome views. George tells us a story about his previous employer offering a million dollars for a property offered at $860k. The location was great, the building was well maintained, and his employer actually had his eye on that property for some time.

Look for potential in the property. Do you want to renovate the property, make an addition to increase the value of the property, get better tenants … or maybe something else. Every piece of investment property has potential, it just depends on how much potential it has.

Have you looked at a property that was “ugh”, but you saw the “bling”? Or did you find a building that didn’t want to be what it was (“Help! I’m really a multifamily property, not an office!”)?

Next time: An interesting investment property and more of How Trump Chooses Properties to Invest In