Archive View (October 2009)

For many investors who rely on FHA-approved buyers to purchase their homes, the "Seasoning Rule" can be a big issue. What is the seasoning rule?  In a nutshell, with very few exceptions, FHA will not fund a mortgage for a property that has been owned for less than 90 days.  This causes many investors to lose money due to holding costs, extended time on the market and/or not being able to market to FHA buyers.  This rule pertains to any title transfer so if an investor transfers a property from one LLC to another, the 90 day rule goes into effect. On September more...

I am pleased to announce that work on site on my golf course in Aberdeenshire, Scotland, will begin this week, ahead of schedule. We plan to build the greatest golf course in the world. There are hundreds of acres of magnificent sand dunes and the seaside landscape includes three miles of spectacular oceanfront. 2000 acres in all, and the location couldn’t be better. I spent five years reviewing sites and turned down over 200 possibilities for development throughout Europe. When I saw the links land at Menie Estate, which is in northeast Scotland’s Grampian region, I knew it was the right place. I more...

In my last blog, I spoke about delivering the goods and how consumers, whether past, present or future, want the best for their money. That will never change. Another thing that will never change is that art forms will always draw from the past, reflect on the present, and look to the future. That applies to everything from art and architecture to business. In my first book, The Art of the Deal, which came out in 1987, I start out by saying “I don’t do it for the money. I’ve got enough, much more than I’ll ever need. Deals are my art form more...

Not too long ago someone was asking me what I thought the secrets to my success in business might be. That’s a broad topic so I decided to apply it to my success over the years, especially pertaining to the brand I have built. But the answers can be helpful to you whether you are a student or if you already run a business. First of all, you need to be able to deliver the goods. People want the best for their money, and that’s a quality common to consumers whether past, present or future. It can also simplify your life--all you more...

The following question was submitted to "Ask Donald Trump" by a Trump University member. Question: What is the best thing your father Fred C. Trump ever taught you in your lifetime? My Response: He always told me to “know everything you can about what you’re doing” and that was simple but wise. I’ve followed his advice and it has proved effective. He also gave me his 4-step formula for success: Get in Get it done Get it done right Get out This is also very good advice and I’ve followed this formula. It works. Side point: My first book, The Art of the Deal, gives background information on my father and how more...

The following question was submitted to "Ask Donald Trump" by a Trump University member. Question: I am a first year diploma student specializing in Engineering. I prefer Entrepreneurship, business management and currently I am educating myself with those subjects more than my current formal education. Would you advise me to stay focused on my formal education for a diploma or for me to pursue my passion? My Response: If it’s possible, you should do both. It seems you are doing both now if you are reading my books. But if you clearly aren’t interested in engineering, it’s best to switch majors. I’m a firm believer more...

One reason entrepreneurs are important is because they find ways to create jobs. How ideas are generated is sometimes a mysterious process, but one way to look at it is to envision giving the world what you wish had been given to you. That opens the door to the philanthropic side of great endeavors, and can greatly increase your mind power when touching on the imaginative side of business. Walt Disney, for example, created an enormous business largely from using and believing in his imagination. Steven Spielberg followed his passion, as did Bill Gates, and they’ve wound up being great givers in more...

I hear it all the time from sellers, "I'm selling my house as-is".  Well, Mr. Seller, what if the buyer accepts the as-is provision, but the appraiser says the front porch handrail needs to be replaced?  What if the buyer's mortgage company won't lend on the property unless there is a clear termite and moisture inspection and your home needs a rotted board replaced in order to get a clearance?  Do you REALLY want to kill an entire sale over a relatively inexpensive repair? In most cases, if you truly MUST sell strictly "as-is", your buyer pool will be limited to cash more...

It's best to be judicious in your research regarding any Association you may become a part of as a result of a purchase.  Most people spend more time researching a stock to purchase than they do researching an Association in which they are buying a home.  Don't make that mistake!  The Resale Certificate.  This is usually a 2-4 page document which states whether or not the present owner is current on their dues, what the dues are, whether or not there are any planned assessments coming up, if the property being transferred conforms to the architectural guidelines of the community, etc.  This more...

Have you ever purchased something that made your life so easy that you wondered how you were ever efficient without it? That's how I feel (and my real estate investors feel) about our pocket video cameras.  Offered by many manufacturers, these cameras are often called by their brand names, Flip, Vado, Webbie as well as others. These inexpensive, easy to use tools have made us more efficient in more ways than we can list in a reasonable-length post.  Here are a few examples: As soon as we acquire a property, the contractor shoots a video to document what is there for insurance and draw more...

Over the years I have dealt with many architectural critics, some of them bad, some good, some excellent. I do not rate excellence just on what they’ve said about me, but rather on their level of taste and expertise. One of the best I’ve ever known is the late great Herbert Muschamp of The New York Times. His reviews were not only interesting, in the terms of the building, but also literarily superb. Generally speaking I have done well with architectural critics. I have found though, somewhat sadly, the choice of the architect is usually more important than the building itself. Certain trophy architects, more...

People become creative when faced with an emergency. Amazing events have happened when people have a crisis or crises to deal with. Unusual strengths can surface, as can courage in the face of disaster. Courage is the ability to go beyond fear. I’m not one to urge anyone to wish for a crisis, but they happen and sometimes it turns out that your problem becomes your opportunity. That’s also a wise way to view any situation you might be in that wasn’t in your game plan--and a lot of things have happened that weren’t in anyone’s game plan or vision of the more...

The following question was submitted to "Ask Donald Trump" by a Trump University member. Question: What was your mentality when you encounter difficult times? How did you manage negativity and come through successfully? My Response: I refused to give in or to give up. I knew I wasn’t finished, and in fact I came back to be more successful than I was before. I refused to become negative and saw the situation as a ‘blip’ and not a catastrophe. I focused on the solution, not the problems. Being positive can give you tremendous resiliency. I regained my focus and was very tenacious. The best mentality more...

If a baseball player hits .333 he’s had a great season--but it also means he failed to get a hit close to 70% of the time. I played baseball in college and I learned a lot about the game and about the importance of team work. I also learned that patience and timing are crucial. That translated into business skills later on. I’m a firm believer that every experience has value if we choose to notice and take the lesson away with us. Not everything we do will be a hit, a home run or a grand slam. It just doesn’t work more...

Graduating from college during an employment slump stinks. It's like the universe dumped on you just because of your birthday. I empathize. It happened to me. Now...get over it. It's October. Summer is long over. If you haven't picked-up the pieces of your shattered prospects, start now, immediately. Here are three things I want you to do: Get a Job That's right, get a job. Any job will do. It doesn't have to be in your field and it doesn't have to be full-time. It just needs to pay. People innately respect the employed. It's much easier to get hired into a desirable position when more...

I was on Neil Cavuto’s show yesterday for an update of what’s happening with the economy. On the whole I’m feeling much better than a year ago. They did the right thing with the banks or we’d be in a major depression now. One problem is that the banks won’t lend any money. Fortunately I’m using my own money. But the banks need to lend to fix unemployment. In that sense, the situation is worse now than a few months ago. The banks are probably building up their balance sheets, but it isn’t doing the economy or the people any good. Regarding the stimulus, more...