Trump Strategies for Real Estate: Billionaire Lessons for the Small Investor - Softcover

Ross, George H.

Softcover

ISBN 10: 0471774340 ISBN 13: 9780471774341

Verlag: Wiley, 2006

Inhaltsangabe

Trump Strategies for Real Estate offers unbeatable insider advice for every serious real estate investor―beginners and old pros alike. For more than twenty-five years, author George Ross has been one of Donald Trump’s chief advisors and intimately involved with many of Trump’s biggest real estate deals. Now, Ross teams up with bestselling real estate author Andrew McLean to present Trump’s real estate investment strategies so that even small investors can invest like Trump. You’ll learn how Trump identifies potential properties and how he finances, negotiates, and markets his big deals. Not everyone has Trump’s money or name, but everyone, even you, can use his tactics and strategies to win big in real estate.

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Über die Autorin bzw. den Autor

GEORGE H. ROSS is co-star of the hit TV show The Apprentice and Executive Vice President and Senior Counsel for the Trump Organization. Previously, he was a real estate attorney, private investor, and senior partner at a major law firm. He has served as business advisor, legal counsel, and negotiator for the leading real estate owners and developers in New York City for fifty years. On the side, he cofounded a radio station business that he sold for millions of dollars. Ross also teaches negotiation at NYU's School of Professional Studies and Continuing Education.

ANDREW JAMES McLEAN is the co-author of seven books, including the bestseller Investing in Real Estate, Fourth Edition, also from Wiley.

Von der hinteren Coverseite

How to invest in real estate like DONALD TRUMP

Donald Trump is the world's most famous real estate billionaire. Now, George Ross, Trump's closest advisor for twenty-five years (and co-star of The Apprentice), reveals the core real estate investing strategies that made Trump so successful. More important, Ross shows how the average real estate investor can use the same creative techniques to dramatically boost profits even on a fixer-upper or a single-family house.

Drawing on his unique insider perspective, Ross explains Trump's strategies for:

• Combining "location" with "innovation"
• Adding "sizzle" and glamour to any building without wasting money
• Making buyers and tenants eager to pay higher-than-market prices
• Financing deals, marketing real estate, and managing properties
• Plus, tips from Ross on how to apply the same negotiation techniques he uses to close Trump's biggest deals

Trump Strategies for Real Estate presents an in-depth look at the creative thinking that took Trump to the top. Whether you're an experienced real estate investor or a novice, you'll make more money on your investment if you use the proven strategies of a real estate billionaire.

Aus dem Klappentext

How to invest in real estate like DONALD TRUMP

Donald Trump is the world's most famous real estate billionaire. Now, George Ross, Trump's closest advisor for twenty-five years (and co-star of The Apprentice), reveals the core real estate investing strategies that made Trump so successful. More important, Ross shows how the average real estate investor can use the same creative techniques to dramatically boost profits—even on a fixer-upper or a single-family house.

Drawing on his unique insider perspective, Ross explains Trump's strategies for:

• Combining "location" with "innovation"
• Adding "sizzle" and glamour to any building—without wasting money
• Making buyers and tenants eager to pay higher-than-market prices
• Financing deals, marketing real estate, and managing properties
• Plus, tips from Ross on how to apply the same negotiation techniques he uses to close Trump's biggest deals

Trump Strategies for Real Estate presents an in-depth look at the creative thinking that took Trump to the top. Whether you're an experienced real estate investor or a novice, you'll make more money on your investment if you use the proven strategies of a real estate billionaire.

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Trump Strategies for Real Estate

Billionaire Lessons for the Small InvestorBy George H. Ross

John Wiley & Sons

Copyright © 2006 George H. Ross
All right reserved.
ISBN: 9780471774341

Chapter One

Sell Yourself Like Trump

Five Personal Qualities You Need to Succeed in Real Estate

Key Points

Use your enthusiasm for the project to inspire others. Build relationships with everyone involved in a deal. Showmanship is a real estate strategy. Be better prepared than anyone else. Be tenacious.

Donald Trump became a billionaire in real estate by making a series of incredibly creative and successful investments in New York City properties. He is now the largest real estate developer in New York and is widely acknowledged to be one of the most brilliant real estate investing minds anywhere. For example, in the early 1980s, with the building of Trump Tower on 5th Avenue, he single-handedly created the market for high-end luxury residences in New York City. He continued with a string of successes and in 2003, 9 of the 10 highest selling apartments were in Trump buildings-apartments that sold for millions of dollars each.

What can the small real estate investor learn from a billionaire developer like Trump? After advising Trump on many of his biggest investments over 25 years, I'm convinced that small investors can successfully use many of the same principles that earn him millions. It's not the scale of your real estate investment project that counts. Whether you are investing in a single-family rental, a four-unit rental, or a multimillion-dollar office building makes no difference to the financial success of your particular project, what's important are the real estate investing strategies used to acquire and develop the property, and how you design and market the property to buyers or tenants. Many of the same basic principles that work for one of Trump's $300-million skyscrapers work just as well for smaller properties. Anyone interested in investing in real estate can benefit from a study of Trump's real estate investor strategies.

For example, 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. Donald Trump has these qualities in spades as he demonstrated on his first big real estate deal, the transformation of the dilapidated Commodore Hotel on 42nd Street in New York City into the magnificent Grand Hyatt. Remarkably, Trump used very little of his own money in this transaction, yet later sold his half interest to Hyatt for $85 million.

This chapter will describe how these five key personal qualities helped Trump make the Commodore-Hyatt deal work, and how small investors can use these same qualities in their own real estate investments to negotiate better deals, sell properties for more money, and dramatically improve real estate profits.

INVESTING CASE STUDY

Trump's Commodore-Hyatt Project

This real estate investment was a monster as far as complexity was concerned. It was 1974, New York City was struggling to survive, and Trump decided that this was a great time to buy a huge, dilapidated, nearly empty building on 42nd Street next to Grand Central Station. Like many of the best real estate investors, he looks at problem properties and sees opportunities. Trump's plan was to convert this old building, the Commodore Hotel, into a 1,400-room first-class convention hotel-the largest since the New York Hilton was built 25 years earlier.

When 27-year-old Donald Trump explained his grandiose idea to me during our first meeting, I told him that based on existing conditions he was chasing an impossible dream that would never happen. I thought the idea was brilliant, but it was totally unrealistic given the economic environment and the huge cast of characters who would have to embrace a set of entirely new concepts for the idea to work. Trump would have to win major financial concessions from:

1. Penn Central, a bankrupt railroad that owned the land on which the Commodore Hotel was built;

2. New York City, which was facing bankruptcy;

3. The State of New York, which had no money to contribute to any venture;

4. A lender who was holding many defaulted loans on New York real estate;

5. A major hotel chain that was not pursuing new facilities in New York City since tourism and occupancy rates were extremely low; and

6. Existing tenants occupying the building.

The deal involved successful negotiation of several treacherous interconnected transactions. If Trump failed to conclude any one of these transactions, it would sink the entire project. Using the five personal qualities outlined in this chapter he had to:

1. Obtain an option to buy the Commodore Hotel from the Penn Central Railroad for $12 million dollars;

2. Convince the representatives of Penn Central Railroad to turn over the $12 million purchase price to New York City, which was owed $15 million in back taxes from the Penn Central;

3. Convince New York City to accept the $12 million to cover $15 million in back taxes and agree to the creation of a long-term lease that would give the city a share of profits in lieu of future real estate taxes;

4. Convince the Urban Development Corporation, a New York State Agency, to accept title to the property, then grant a long-term lease of the property to Trump and to use its right of eminent domain to obtain possession from existing tenants;

5. Find a major hotel operator willing to participate in the ownership and operation of the new hotel to give credibility to the creation of profits in which New York City would share; and

6. Find a bank willing to lend $80 million to cover all of the costs involved in purchasing and developing the property.

This was as complex as it sounds. Something like this had never been done before.

To jump ahead to the end of the story, Trump pulled it off, convincing all these parties to work with him, using his enthusiasm, relationship-building skills, showmanship, preparation, and tenacity. In September of 1980, the Grand Hyatt opened-and it was a great success from day one. The renovated Hyatt helped revitalize the whole Grand Central Station neighborhood in New York City, which in turn played a major role in reversing the failing, bankrupt image of the city in the 1970s. By 1987, gross operating profits at the Hyatt exceeded $30 million annually. Years later, after recouping his modest cash investment in the property, Trump sold his half interest to Hyatt for $85 million.

Here's how Donald Trump used critical personal qualities to clinch that monumental real estate deal. You can use the same qualities in your own dealings regardless of their size or complexity.

Use Your Enthusiasm for the Project to Inspire Others

Enthusiasm is a crucial element of the investment game because your success depends largely on capturing the imagination and securing the cooperation of key players-buyers, sellers, lenders, tenants, contractors, and others. If you're not enthusiastic about your real estate investment idea, there's no way you can get someone else to sign on. Remember that people will...

Details zur Ausgabe

• Verlag: Wiley
• Erscheinungsdatum: 2006
• Sprache: Englisch
• ISBN 10: 0471774340
• ISBN 13: 9780471774341
• Einband: Taschenbuch
• Auflage: 1
• Anzahl der Seiten: 256
• Kontakt zum Hersteller: Wiley-VCH GmbH; product_safety@wiley.com; ; Boschstrasse 12; Weinheim; 69469; Deutschland