This Issue: It is often easier to make money in down markets

Because of the movie, "The Devil Wears Prada,"a lot of people have been talking about horrific bosses. It seems as if everyone has a story about a terrible boss that made going to work seem like a living hell.

Despite what you may think, I happen to believe that I'm a pretty good boss. Maybe some of my employees might disagree with that, but I doubt that they'd have the courage to tell me to my face.

In any event, they sure better not have entered me in the Bad Boss contest sponsored by the Working America web site. Some of those entries were absolutely unbelievable. There was the Scrooge boss who fired his employees by putting pink slips in their Christmas stockings. And the boss who fell asleep while giving his employees their performance reviews. That's almost as good as the school principal who wouldn't let one of her teachers get a broken arm fixed until the end of the school day. Or the boss who actually snatched paychecks from his employees' hands to rewrite them for lower amounts.

In any event, I'd say the stories of these people make me look pretty good. I realize for the first time in my life, I'm a very nice guy.

Donald J. Trump, Chairman of Trump University, is featured in many Trump University courses, incuding How to Build a Fortune: Your Plan for Success from the World's Most Successful Businessman.

Has all the talk about a "down market" scared you away from investing in real estate? If so, I'd urge you to take a look around. Many, many investors are making a fortune in the current market. If you stop hiding and start investing, you can be one of them too.

Here are four strategies that can make you money - a lot of it -in today's flat market:

Down Market Strategy #1: Explore overlooked niches. This is a good time to make money by investing in "fixer-uppers," of course. But it is also a positive climate for investing in small apartment houses, office buildings, undeveloped land and other niche properties. And don't overlook foreclosed properties and other niche properties that could be available right where you live. To learn more, click here.

Down Market Strategy #2: Remember to look at all the numbers. Don't get frozen by a high interest rate, slowing property sales or any other stand-alone number. Instead, analyze all the numbers that pertain to individual properties. Positive cash flow from rents, the availability of owner financing and other factors can make a property highly profitable - even one that other investors don't want. To learn more, click here.

Down Market Strategy #3: Improve what you own. If you invest an extra $10,000 to install granite counter tops in an apartment house you are renovating, you could generate an extra $100,000 in rental income over the next ten years. If you spend $5,000 on touch-up landscaping, you could add $20,000 to the selling price of a house you own. The ability to improve property makes real estate an exceptional investment, even in slow economic times. To learn more, click here.

Down Market Strategy #4: Cash in on regional trends. If you do, you can identify cities and towns that promise far above-average real estate profits today. To learn more, click here. Look for trends like these:

• Improved train service between a town and a city nearby.
• Job growth, spurred by the arrival of a major new employer in a state.
• The discovery of a community by young urban professionals, immigrants from a particular country or members of some other group.
• Improving schools.

You could argue that investing in real estate today is risky. But I challenge you to name a time when investing in real estate involved no risk. The real question is, do you know enough to minimize those risks and maximize your profits? At Trump University, we bring you the knowledge that assures success.

Michael Sexton is President of Trump University.

Radical wealth-creating advice from the Trump University classroom

If you've been watching the news and listening to your friends, you're probably convinced this is a terrible time to invest in real estate. Interest rates are up, housing sales are down, properties are overvalued. The "bubble" is about to burst.

Let me share this quote with you . . .

"The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline."

That statement could have been written last week, but the fact is, it was written in Time Magazine on December 1, 1947. Too bad for the people who believed it and decided not to invest in real estate. They would have missed out on two or three of the biggest booms in history.

Now, there are lots of real estate gurus out there who will sell you the idea that the only way to make good investments in bad times is to take advantage of distressed sellers. Difficult times, they say, offer you an opportunity to find motivated people who will sell you their properties for 40 or 50 percent below market value. You can then flip these properties and make money quickly.

That strategy works, of course. It is one we discuss in detail in The Real Estate Investor Training Program at Trump University. But it is only one strategy that can make you significant money in lean times. Let me give you an example.

When I was just getting started in real estate, I bought an apartment house in Indiana for $100,000. I put $10,000 down and the seller agreed to finance the balance over 10 years. Twelve years later, I sold it for exactly the same price - $100,000. That's a lousy investment, right? Some people would probably say so. Yet cash flow from rents netted me an annual return of 25 percent on my $10,000 investment. Then there is the additional fact that I grew my total equity from $10,000 to $100,000.

Do the numbers and you will see that my $10,000 earned me money - a lot of money - even in a very flat market. Property values were not surging in Indiana at the time, to say the least.

One secret of real estate success is to understand the numbers well enough to pinpoint the value that can lie hidden in properties that other investors overlook. That kind of number analysis is an important part of The Real Estate Investor Training Program, my new course at Trump University.

With the right knowledge and the right outlook, you can make lots of money in real estate today - or on nearly any other day. You can run right by the ostriches who have stuck their heads in the sand because people told them this is a bad time to invest.

Gary Eldred, PhD is professor of real estate at Trump University, where he teaches The Real Estate Investor Training Program. Dr. Eldred is also a real estate investor and author of many best-selling books on real estate, including Trump University Real Estate 101: Building Wealth with Real Estate Investments. His other Trump University courses include Real Estate Goldmine: How to Get Rich Investing in Pre-Foreclosures and Bubble-Proof Real Estate Investing.