Archive View (August 2009)

The great thing in the world is not so much where we stand as in what direction we are moving. --Oliver Wendell Holmes This quote brings home a powerful thought, and it has to do with circumstances. Many people are dealing with difficult circumstances now and it’s important to remember that it can be a temporary situation. As long as we keep moving forward, things are certain to change. Keeping things in perspective is helpful. I have mentioned before that a fear should be labeled a concern, as that allows for more objectivity. I also ask myself, “is this a blip or is it more...

The following question was submitted to "Ask Donald Trump" by a Trump University member. Question: What was your biggest accomplishment in real estate? And where was it? My Response: Trump Tower opened in the early 1980’s and was the first building I had built that had my name on it. Getting it done--and in the way I wanted to do it--was a huge accomplishment. I’m still proud of it, and it has become a major tourist attraction in New York City. Trump Tower is on Fifth Avenue in New York, between 56th and 57th Street. Related Posts Choosing the Right Real Estate Market more...

Rental managers and owners are increasingly requiring that renters carry their own liability insurance. Approximately 2/3 of the people living in rental properties do not have renters insurance.  There is a general misconception among tenants that the landlord's policy will cover them in case of lost or damaged property.  The truth is, the landlord is not responsible for covering any of the tenant's personal property, unless the loss or damage is due to the negligence of the landlord. So, how does requiring renter's insurance help a landlord?  It is a way to minimize their own liability and insurance costs.  It also protects the more...

We briefly discussed creative capital last week, and it’s a topic that deserves a bit more exploration. In essence, one way to become rich is to be able to move an idea into your asset column. Those people who have had an innovative idea and put it into production, whether it was for an automobile or for Post-Its, have been able to move that idea from “idea” to “asset” in a very big way. A lot of great ideas get discarded before they are developed, and a lot of ‘great’ ideas deserve to be discarded before they take up too much time more...

Are you eager to get a start in real estate, but short on cash? Don't give up. These strategies can get you started with minimal investment: Barter your professional services. You could be a contractor, landscaper, accountant, attorney--whatever. Offer your services in exchange for a percentage of the sale. Collect a finder's fee if you can find investment properties for a developer. One great strategy is to run a newspaper ad in another state that says, "Attention Developers! Distressed properties available in [your state]. Call XXX-XXXX now." Being a remote agent for developers is a good way to generate interest--and commissions. Where will more...

That’s an empowering thought. It’s also a real possibility. If it seems you are being thrown curveballs every day, that means it’s time for some strategy. In short, you need to be bigger than your problems in order to handle what’s being delivered. Here are a few things to think about. What is your creative capital? Many of us have hobbies, knowledge and experiences that can be turned into something useful in the marketplace. Give this some comprehensive thought. You probably have talents that could be further developed to create a career.   Are you lucky? Some people seem to be naturally lucky. Another definition more...

The following question was submitted to "Ask Donald Trump" by a Trump University member. Question: There are many markets in real estate, what is your opinion about choosing the right type of market and how do you do that? My Response: The most important thing is to know your territory. I am successful in real estate but I still do my homework, particularly if it’s an area I’m not familiar with. When I decided to develop in Manhattan, I spent a great deal of time walking around, to familiarize myself with the neighborhoods because I was new to the city. Do not take anything for more...

Lets’ face facts. Only a small percentage of real estate ventures generate as much profit as the investors were hoping for. And many investments actually lose money. When ventures lose money, the problem is usually that the investors failed to work the numbers carefully. And working the numbers is not all that difficult. Let’s take a closer look.    First, consider this investment that lost money: An investor named Joan bought a pre-foreclosure property for $180,000 from a seller who said, “Houses like this in this neighborhood should sell for $300,000.” So Joan spent another $50,000 on renovations, then discovered she could sell the house more...

What is a HUD home? HUD stands for the Department of Housing and Urban Development. HUD is the insurer for the FHA loan program. When a FHA borrower defaults, the home becomes a "HUD" home, which you can buy. HUD homes are residential properties with 1-4 units. How do I get a list of HUD homes for sale in my area? Go to this site: http://www.hud.gov/homes/index.cfm and click on your state to find the homes available in your area. This is the MOST accurate place to find HUD homes. It is not necessary to pay or subscribe to a service for this information. Who can more...

There’s an interesting book that first appeared in 1987 that became a bestseller. It was updated in 1995 and it contains a full gamut of information that will keep you interested in reading more no matter what your interests might be.  An Incomplete Education,by Judy Jones and William Wilson, covers a variety of subjects in a succinct CliffsNotes way that can save you a lot of study time while keeping you entertained. For example, their chapter called Opera for Philistines describes the ‘most bankable composer ever’ (Puccini) as “The Steven Spielberg of opera.” Their chapter on Shakespeare, Bellying up to the Bard, more...

If you want to get started in real estate development without spending a cent, why not develop a property that your family already owns? It could be a house belonging to an aging relative who is about to go into assisted living, a cabin that you and your siblings inherited but never use - or a vacation condo that your uncle owns, but hasn’t visited in years. Many families end up owning more unused properties than used cars. If you can pinpoint some, your next step is to structure a real estate development deal that works for you and all relatives who more...

I have often said that I learn something new every day, and recently I learned where the term “caddie” came from, which, as a golfer, I found to be of special interest. Golf originated in Scotland and Mary, who was later to become known as Queen of Scots, loved and played the game. Louis, King of France, knew that Mary loved the game and so when she went to France as young girl he had a golf course built for her enjoyment, which was the first golf course outside of Scotland. As he was concerned for her safety, King Louis had cadets more...

First, how not to write real estate ads. Take a moment to think about this real estate ad that appeared in a suburban newspaper recently: A babbling brook runs through the back yard of this spotless cape with new furnace and cabinets. Asking $350,000. Sellers anxious. Call 888-8888 today. I don’t know how that ad strikes you - it describes a brook, a furnace and the agitated psychological state of the current owners. But I think that you will agree that it does very little to get the house sold, for one very simple reason: It fails to address the desires and needs of more...

The way things are these days it seems a lot of people feel they’ve lost control. There are many things we can’t control, but I’ve learned that taking a positive outlook is a form of control that is available to everyone. It’s a way of keeping your fate in your own hands. One effective technique is to make sure you define yourself versus allowing others to define you. They will limit you when instead you should see yourself as limitless when it comes to possibilities. I can remember when people and newspapers were saying I was done, finished and in total financial more...

A smart older real estate investor once told me, “In lean markets, buy raw land and hang onto it. Land can’t burn down. Nobody can steal it. If you’re patient, its value always increases. And you don’t even have to insure it.” That’s wise advice. Yet undeveloped land isn’t the only smart real estate investment for lean times. Here are some other investing options that can generate self-sustaining income while they increase in value. Buy rural or suburban land where you can build and operate a self-storage facility until the market strengthens. Self-storage facilities are great “placeholder” businesses that generate income from land more...

Coming together is a beginning, keeping together is progress, working together is success.  --Henry Ford Synergy is a word that implies that the whole is greater than the sum of its parts. It’s a coming together of energies that is made clear by the Greek roots of the word: syn + ergos = ‘together working’ which is what Henry Ford was saying in his quote. It has a scientific application but is a great word for business aptitude, as in, combining forces to create a greater momentum, a greater whole. We all know about the great teams that have worked together to make history more...

The following question was submitted to "Ask Donald Trump" by a Trump University member. Question: You have faced some really big challenges and some very difficult circumstances in your life. What activities, words of wisdom and other tools do you use to get yourself back up to remain positive? What advice would you offer to anyone struggling today? My Response: Your focus is very important--so be sure to focus on the opportunities, because they are always there. For example, if 90% of companies aren’t hiring, then focus on the 10% that are. I learned to focus less on the problem and more on the solution, more...