Donald Trump may not be everyone’s cup of tea, but there’s no doubt he’s a savvy investor––and anyone looking to create wealth through real estate would be wise to take note of his tactics.
Here are just some of the tips that the Republican candidate for president, and long-time businessman, offers through how he has handled his real estate investing business.
Real Estate Investing Tips From Trump
Find a mentor. Trump had a great mentor: his father, Fred Trump. Find a mentor you respect and admire. Take the time to build a relationship with him or her. Learn the ropes from someone who’s been there––you’ll save time and money in the long run.
Believe in yourself. Trump has unbridled confidence. When faced with business failures, he harnesses every available resource and bounces back.
Develop an eye for what’s possible. Trump didn’t build his empire by buying the most beautiful property he could find. Instead, he bought a dilapidated hotel in midtown Manhattan in 1976 as properties values sunk around it. He negotiated a 40-year tax abatement, secured financing and renovated it into the jewel it is today: The Grand Hyatt New York.
Investing in real estate requires that you look beyond a property’s current condition and see it for what it could be. The home that’s in pristine condition may appeal to more buyers than the one that needs TLC, but the ugly property in a good location is always the better choice for an investor. A diamond in the rough can quickly become a jewel with a bit of paint and elbow grease.
Go against the grain. Trump’s strategy over the years has been to zig when others are zagging. He didn’t look to what others were doing; he didn’t invest in trends. He invested in depressed markets no one else wanted to touch.
Don’t Back Down
One of Trump’s most consistent characteristics is that he is constantly on the offensive, never backing down.
When it comes to purchase negotiations and dealing with nonpaying tenants, there’s something in this bullish method investors can learn from. Hold your ground. Be shrewd. Remember your investment is a business. Treat it that way.
But also keep in mind that for long-term success, it must be about more than money. Trump’s supporters are enthusiastic because he makes them feel like they are part of a winning team. As an investor, you need people to be enthusiastic about working with you.
From real estate agents to contractors, a core group of trusted professionals can help you build your business. Make them excited to work with you; your success is theirs, and vice versa.
These are just some of the ways Trump’s actions are something you want to study if you plan to get into real estate. Agree with his politics or not, his business savvy makes him a person with following, particularly for those interested in real estate.